Restaurant Workers' Comp in Tennessee
What Tennessee requires of restaurants and bars for workers' compensation — when it kicks in, who's exempt, and what it costs.
Reviewed by J. Robert Smith, Licensed Insurance Agent (NPN 10378680). Last updated .
It depends on size. Tennessee requires workers' compensation only for non-construction employers with five or more employees, so a small cafe with four or fewer staff may be exempt. Minors, family, and part-time workers count toward five, but sole proprietors, partners, and LLC members do not. Construction restaurants need coverage with even one employee.
- Required?
- Yes
- Kicks in at
- 5+ employees for non-construction businesses (a restaurant is non-construction), counting full- and part-time. Construction and coal-mining employers must carry coverage with even one employee. Definitions at T.C.A. 50-6-102.
- Restaurant rate
- NCCI 9082 (full-service) approximately $0.70 per $100 of payroll (leading-carrier data); 9083 (fast food) comparable or slightly lower. This is well below the ~$1.06 national 9082 average. Approximate, industry tier.
- Market
- Competitive private insurance market with no state fund; coverage is purchased from licensed private carriers or through approved self-insurance.
Is workers’ comp required for a restaurant in Tennessee?
Tennessee requires workers' compensation once you reach 5+ employees for non-construction businesses (a restaurant is non-construction), counting full- and part-time. Construction and coal-mining employers must carry coverage with even one employee. Definitions at T.C.A. 50-6-102.. For counting to five, minors, working family members, part-time employees, and full-time corporate officers are all included — but owners of a sole proprietorship, LLC, or partnership are NOT counted. Full-time corporate officers who count may still elect to exclude themselves (Form I-6); coverage may be withdrawn via Form I-3 if the workforce drops below five.
What restaurant workers’ comp costs in Tennessee
The restaurant class-code rate in Tennessee is NCCI 9082 (full-service) approximately $0.70 per $100 of payroll (leading-carrier data); 9083 (fast food) comparable or slightly lower. This is well below the ~$1.06 national 9082 average. Approximate, industry tier.. Your premium is that rate applied per $100 of payroll and adjusted by your experience modifier, so it scales with how many people you employ and your claims history. Competitive private insurance market with no state fund; coverage is purchased from licensed private carriers or through approved self-insurance.
What owners in Tennessee miss
- The five-employee non-construction threshold means many small independent cafes, coffee shops, and family restaurants with four or fewer staff are legally exempt — a genuine trap for owners who assume coverage is always mandatory.
- Every worker counts toward the five, including minors, part-timers, and working family members, so a restaurant that seems small on headcount can still cross the threshold quickly during busy seasons.
- The distinction is entity-based: sole proprietors, partners, and LLC members are excluded from the five-person count, so an owner-operated eatery reaches the threshold only through non-owner staff.
- Tennessee's Bureau of Workers' Compensation enforces compliance and can impose civil penalties, and failure to secure coverage can be charged as a criminal offense (up to a Class A misdemeanor).
Sources
- Tennessee Bureau of Workers' Compensation: Who Must Carry Insurance — Non-Constructionprimaryretrieved 2026-07-27
- Tennessee Department of Labor and Workforce Development: How many employees before workers' compensation is required?primaryretrieved 2026-07-27
Cost examples are illustrative national figures gathered from public filings and industry surveys. They are not quotes. Your actual premium depends on your state, carrier, revenue, payroll, location, and coverage selections. Restaurant Insurance Authority is an insurance marketing and referral service, not an insurer or licensed agency. We connect business owners with licensed independent commercial-lines agents who specialize in food and beverage. Questions? Call (855) 480-1410.
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