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FOR IMMEDIATE RELEASE

CONTACT: MILISSA REIERSON
MARCH 7, 2006
(615) 741-2257 (O)
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(615) 419-2068 (C)


UNINSURED EMPLOYERS FUND RECEIVES $150,331 PENALTY PAYMENT
PROGRAM ENSURES EMPLOYERS COMPLY WITH WORKERS' COMPENSATION LAW

NASHVILLE -Tennessee Department of Labor and Workforce Development Commissioner James Neeley announced the Division of Workers' Compensation's Uninsured Employers Fund received a payment of penalties of $150,331.

The Uninsured Employers Fund received a check from the Attorney General's Office in the bankruptcy cases of Transway, Inc. and Progressive Systems, Inc. in the amount of $150,331 as payment and settlement of the Uninsured Employers Fund bankruptcy cases against these two (2) employers.

For July 1, 2005, through January 31, 2006, the Uninsured Employers Fund has collected a total of $486,900 in monetary penalties assessed against employers for non-compliance with the insurance requirements of the Workers' Compensation Law.

“I am extremely proud of the staff in the Workers’ Compensation Division,” said Commissioner James Neeley. Their diligence and hard work are resulting in more protection for Tennessee’s workers and more compliance from Tennessee’s employers.”

State law mandates that the Division of Workers' Compensation's Uninsured Employers Fund ensure that companies properly qualify as a self-insured employer or have workers’ compensation coverage in compliance with the insurance requirements of the Workers’ Compensation Law.

During an investigation, the employer is required to show proof of compliance with the insurance requirements of the Workers’ Compensation Law or provide documentation as to why they are not required to carry workers’ compensation coverage. If workers’ compensation coverage is obtained, a penalty for the period of noncompliance is assessed at a rate of one and one half times the average yearly workers’ compensation premium. If workers’ compensation coverage is not obtained, a penalty for the period of noncompliance is assessed at a rate of two and one half times the average yearly workers’ compensation premium.

Investigations are largely complaint driven. If you suspect an employer does not have workers' compensation insurance as required by Tennessee law, please contact the Division of Workers' Compensation's Uninsured Employers Fund at 1-800-332-2667 (within Tennessee) or 615-532-1319

(06-43)
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