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  • Tennessee’s Governor signed HB 1181, the Tennessee Information Protection Act (TIPA), into law on May 11th, 2023. This bill established a framework for controlling and processing consumers’ personal data in the state. It makes Tennessee the eighth state to pass consumer privacy statutes alongside the following states:

    • California 
    • Colorado 
    • Connecticut 
    • Indiana 
    • Iowa
    • Utah 
    • Virginia 

    Legislation

    Let’s unravel the details of this groundbreaking legislation that puts consumers first!

    Unraveling The Key Provisions Of This Bill

    TIPA is a game-changer for anyone doing business in the state of Tennessee. If you control or process personal data for at least 100,000 Tennessee residents, or if you handle personal data for at least 25,000 residents and derive 50% of gross revenue from the sale of personal data, this law is for you.

    But hold on; it’s not just about businesses. TIPA is a big win for consumers as well. Picture this: you have access to your personal data, the power to make corrections, request deletion, and even access your data in a portable format. In addition, you can request what categories of your information are being sold or disclosed. For those that are not a fan of your data being pushed around, you can opt out of the sale of your data altogether.

    Now, let’s talk about responsibilities. If you’re a data controller under TIPA, listen up. You must respond to consumers’ requests within 45 days (unless qualifying circumstances arise) and provide the requested info for free, not once but twice a year for each consumer. If a consumer doesn’t like your response, they’ve got an appeals process on their side. But wait, there’s more! TIPA puts serious constraints on how you handle data. It’s all about collecting what you truly need, keeping it secure, and never processing it for purposes that don’t align with the specified goal. Steer clear of any discrimination issues or unauthorized access; sensitive data needs explicit consumer consent. Let’s not forget that you must ensure that contracts and agreements do not waive or limit consumers’ data rights. Privacy notices must be clear as day, leaving no room for confusion.

    What More? 

    Here’s the kicker: the state attorney general means business. TIPA empowers them to enforce the law, handing out penalties of up to $15,000 per violation and even treble damages for those who knowingly and willfully break the law. If a TIPA violation has been discovered, the attorney general gives the data controller written notice and will have 60 days to fix the alleged violation before the attorney general can file a suit.

    If you’re a business owner in Tennessee, mark your calendars for July 1st, 2024. Now the question is, what will you do to stay ahead of the game? How will you prepare yourself and your business for these groundbreaking changes that protect consumer privacy?

    Stay Ahead Of The Curve – Partner With A PEO

    It’s time to take action and ensure you’re on the right side of the law. You might be wondering how to navigate this new law effectively. Luckily, there’s a solution that can make your journey smoother and ensure compliance from day one – partner with a professional employer organization (PEO) like GMS.

    When you partner with GMS, we provide the expertise, resources, and support needed to implement TIPA seamlessly. From handling data requests and privacy notices to establishing robust data security measures, we have your back. Don’t wait until July 1st, 2024 – start preparing today by considering a PEO partnership and proactively safeguarding your business and customers’ privacy. Together, let’s pave the way for a secure and successful future. Get in touch with us today.

  • If you think bullying only affects children, guess again. According to a 2019 Monster.com survey, a whopping 94 percent of people said they were bullied in a workplace at some point. This trend has grown to the point where now states like Tennessee are implementing new statutes to combat the issue. Find out how Tennessee plans to tackle workplace bullying and what what you can do to protect your business.

    An employee being bullied at work.

    How Tennessee’s Anti-Bullying Statute Now Impacts Employers

    Tennessee’s efforts to have workplaces implement anti-bullying policies started back in 2014 with the adoption of the Healthy Workplace Act. This act incentivized employers to add these anti-bullying policies in exchange for some legal protection against potential litigation from bullied employees.

    The 2014 version of the statute only applied to state and local government agencies, but that changed on April 23, 2019 when Tennessee Gov. Bill Lee signed a bill that extended those protections to private employers in addition to government agencies. However, the statute doesn’t require employers to create an anti-bullying policy. Instead, it incentivizes them to do so for some legal protection.

    How does the statute protect Tennessee employers who add an anti-bullying policy? According the The National Law Review, “Employers that adopt a policy that complies with the act will be ‘immune from suit for any employee’s abusive conduct that results in negligent or intentional infliction of mental anguish.’”

    However, there are some stipulations for the adopted policy in order to gain the aforementioned legal protection, as the policy must meet one of two requirements. First, the employer can adopt the model policy published by the Tennessee Advisory Commission on Intergovernmental Relations (TACIR). Second, the employer can create its own policy as long as it:

    • Assists employees in recognizing and responding to abusive conduct
    • Prevents retaliation against employees who report abusive conduct

    What Small Businesses Can Do to Protect Themselves and Their Employees from Bullying Cases

    While Tennessee’s changes to the Healthy Workplace Act give employers some optional protections against litigation, it isn’t the only state to do so. According to The Healthy Workplace Campaign, 30 states have adopted some form of healthy workplace bill. Regardless of whether your state has some optional protections or not, it’s important to take steps to address the situation for your company.

    Not only can bullying cause stress and anxiety for your employees, it can also open you up to potential litigation from victimized workers. Even if you personally didn’t bully the employee, that worker could argue that you ignored the issue or enabled it by creating an environment that fostered bullying. When the potential costs of a lawsuit could reach hundreds of thousands of dollars, it’s important that you protect your business from these potential dangers. Here are some steps you can to prepare for the future.

    Create your own anti-bullying policy

    A good anti-bullying policy can help your workplace even if your state doesn’t offer immunities from potential lawsuits like Tennessee. Having a policy in an updated employee handbook will not only help show that you made an effort to make your stance on bullying clear, it can also helps protect against both people claiming you’re partially responsible for bullying and any employees you need to discipline – or even terminate – for bullying.

    The specifics of your policy can depend on the laws in your specific state, but the Society for Human Resource Management provides a good template for an anti-bullying policy as a basis. It’s also important to involve your lawyer and an HR compliance expert to make sure you use the proper verbiage in your policy.

    Educate employees

    In addition to having a policy in your handbook, it’s also good to take a more active approach toward teaching your employees about anti-bullying practices. One such option would be a training and development program where an HR expert could come in and educate your employees about the steps you’ve put in place to talk about and prevent bullying. Not only will this increase awareness of your efforts to everyone in the company, it can also give them the means of reporting an issue in case one ever occurs.

    Get liability insurance

    While the steps above can help you limit the chances of bullying and show your company’s efforts to create an open, healthy workplace, there is still a chance that an employee may still file a liability lawsuit. Employment Practices Liability Insurance (EPLI) can help protect you against the financial ramifications of these lawsuits whether or not they’re warranted.

    Protect Your Business from Bullying and Other Threats

    Whether you’re dealing with bullying, a workplace injury, or some other issue, it’s important to make sure that your business is prepared for any trouble. However, that’s not so easy when you have to spend so much time and effort running your business. That’s where GMS can help.

    As a Professional Employer Organization, GMS provides comprehensive HR services for businesses of every size. Whether you need help handling payroll, risk management, or some other key function, our experts can help you prepare for the present and the future while you focus your efforts on growing your business. Contact our Tennessee office or one of our other locations today to talk to one of our experts about how GMS can help your business today.

  • Like any other state, Tennessee has it’s own particular rules when it comes to workers’ compensation. The Volunteer State has specific compliance standards for acquiring coverage. Here’s what small business owners in Tennessee need to know about workers’ compensation.

    A woman filling out a work injury form for a Tennessee employer with workers’ compensation insurance.

    Does My Business Need Workers’ Compensation Insurance?

    The state of Tennessee is strict when it comes to required workers’ compensation coverage. To start, Tennessee law mandates that employers must secure workers’ compensation insurance if they have five or more employees.

    It’s important to note that there is a big distinction between who is considered an employee or an independent contractor. While you may not view certain part-time workers or family members as true employees, the state may count them toward your five-person threshold depending on certain criteria. The differences between employees and independent contractors typically come down to the level of control an employer has over a person. In Tennessee, the state adopted a new 20-factor test that went into effect Jan. 1, 2020 to determine who is legally considered an official employee.

    Exemptions to the five-person minimum

    While five employees is the main threshold for mandatory workers’ compensation insurance, there are exceptions to that rule. The exemptions work both ways, allowing some businesses to work around the five-person count in some instances while lowering the threshold for others.

    In Tennessee, there are a couple of instances where employers need to secure coverage even if they only have a single employee. This one-person threshold applies to all employers in the coal mining or construction service industries unless they are specifically exempt. For example, Tennessee’s Department of Labor & Workforce Development notes that sole proprietors, members of LLCs, and partners “are excluded from the count of employees that determines whether or not an employer is covered by the Tennessee Workers’ Compensation Act.”

    Minimum employee thresholds do not apply to any state and local government agencies, as well as businesses that employ farm laborers or domestic help. However, these entities, along with any other business not required to secure insurance, may purchase coverage at their own discretion. It’s also important to note that any companies that do not have to provide worker’s compensation insurance are not protected against legal action. Injured employees for these companies won’t receive workers’ compensation benefits, but may still file a lawsuit against the employer.

    How Do I Make Sure My Business is Covered?

    If you need to – or decide to – secure workers’ compensation coverage, you have three options in Tennessee:

    • Voluntary market plans
    • Tennessee assigned risk plans
    • Self-insurance plans

    Unlike monopolistic states where employers have a single route for acquiring workers’ compensation insurance, Tennessee allows business owners to compare quotes and purchase policies from private companies. If your business has older or higher-risk employees, you can also purchase coverage from Tennessee’s assigned risk plan. This plan is managed by the National Council on Compensation Insurance (NCCI) and gives employers in Tennessee an insurance option if the voluntary market won’t.

    The third option involves employers self-insuring workers’ compensation claims. This route means that an employer assumes the risks associated with providing workers’ compensation to employees. As such, a self-insured employer won’t submit claims to an insurance company or pay fixed premiums. Interested businesses can apply with the Tennessee Department of Labor & Workforce Development to qualify for self-insurance.

    However, this option means that your business is on the hook for the cost of each workers’ compensation claim out-of-pocket as they happen. This arrangement makes self-insurance a high-risk, high-reward approach for smaller businesses without assistance from a Professional Employer Organization or some other organization that can administer such a policy.

    What’s the Best Way to Protect My Business without Extensive Workers’ Comp Costs?

    While there are a few situations where you won’t need to secure workers’ compensation insurance, odds are that you do. Even if you don’t, that insurance can be an important safeguard against legal action in case an accident does occur.

    Of course, this protection does come at a cost. Workers’ compensation rates can be a major drain on your overall bottom line. Fortunately, you have options in Tennessee that allow you to find the best means of workers’ compensation coverage for your business. Even better, you can work with a PEO to not only expand your coverage possibilities but also work to lower your rates through cost containment and loss prevention strategies.

    Certain costs or risk levels can limit options for small companies. As a PEO that represents tens of thousands of employees, GMS can help you tap into Fortune 500-level services, such as better workers’ compensation insurance options and more ways to save on rates. Between expert claims managers and economies of scale, we can help you protect your business at a more reasonable cost.

    Ready to keep your business compliant and take the burden of HR administration off your shoulders? Reach out to our Tennessee office or one of our other locations to talk to one of our experts about how we can help you through risk management and other critical administrative services.