Tennessee Labor & Hiring
Construction carries the strictest workers'-compensation rule in Tennessee, and every new hire triggers federal paperwork. This chapter covers the coverage threshold and the I-9 and W-4 forms.
Workers' compensation in construction
Tennessee's construction industry is the strict case: an employer providing construction services must carry workers' compensation coverage even with a single employee (T.C.A. §50-6-902). Most non-construction Tennessee employers are not required to carry coverage until they have five or more employees, and working uninsured in construction carries significant penalties.
Forms I-9 and W-4
Form I-9 verifies a new hire's identity and authorization to work in the United States and is retained rather than filed. Form W-4 tells the employer how much federal income tax to withhold. Because Tennessee has no state income tax, there is no state withholding form to complete.
State-specific details
State exam facts
- State regulator
- Tennessee Board for Licensing Contractors (TBLC), Department of Commerce and Insurance
- Passing score
- 73%
- Scored questions
- 50
- Time limit
- 140 minutes
Does Tennessee require a state contractor license?
Yes. The Tennessee Board for Licensing Contractors (TBLC) licenses contractors under T.C.A. Title 62, Chapter 6. A license is required before bidding at $25,000 or more for general building work, $3,000 for masonry, and any dollar amount for electrical/plumbing/mechanical.
What is on the Tennessee Business and Law exam?
The Business and Law exam is 50 questions, 140 minutes, and requires 73% to pass. The monetary limit is the lesser of ten times net worth or ten times working capital; a reviewed or audited CPA financial statement is required for a limit above $1,500,000.
What are Tennessee's bid-law and lien rules?
Bidders must disclose license information under §62-6-119. Tennessee lien law (T.C.A. §66-11) gives the prime contractor a one-year enforcement period, and there is a 5% retainage-escrow rule (§66-34-104). Tennessee has no state income tax on wages.
Sources: https://www.tn.gov/commerce/regboards/contractor.html