Tennessee lawmakers could tweak how employers pay for workers’ compensation. The head of a Republican task force on economic development says that could save some businesses enough money to add more jobs.
Representative Jimmy Matlock runs a tire and car repair shop in East Tennessee. Businesses like his have to be able to pay out in case a worker gets hurt on the job. Insurance costs for that depend on the line of work and how dangerous it is.
For example, Matlock says a mechanic in his shop has a higher risk – and cost – than an office worker there. But Matlock says he does some of both.
“Well, in which area do I fall? Because it makes a tremendous difference on your rate. We believe there needs to be another gap in our automotive field that would allow a store manager who is both a sales person and also maybe go out in the shop to move a car or retrieve a tire or something, that his rate would not be as high as the guy who’s out there all day.”
The state already makes some similar exceptions in the construction industry.
It’s unclear whether such changes will happen next session, as the task force didn’t make a specific proposal. But Matlock figures such a change could save his business more than $10 thousand. He says that’d go a long way toward adding another job.
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