From Insurance Business, Matthew Sellers discusses a case in Tennessee in which the court said that a worker misclassified as an independent contractor was eligible for workers compensation benefits. Matthew writes:
A Tennessee court says calling your worker a contractor doesn’t mean you can skip workers’ comp – especially when you’re the one controlling how they work.
On July 11, 2025, the Tennessee Workers’ Compensation Appeals Board upheld an earlier ruling that SageHome, LLC – doing business as New Bath Today – must provide medical treatment to Julia Havey, a salesperson injured while on a sales call. At issue was whether Havey was truly an independent contractor or actually an employee entitled to workers’ compensation.
The company had denied her claim, leaning heavily on a signed agreement from May 3, 2023, titled “Sales Representative Agreement (Independent Contractor).” The contract stated she was a “direct seller” under the tax code and wouldn’t be treated as an employee for employment tax purposes. It also said SageHome had “no duty to supervise” her, and that she could hire helpers or work elsewhere, as long as it wasn’t for a competitor.
But the Appeals Board didn’t stop at the contract. Instead, it looked closely at how the relationship worked in real life.
Read the full story at SageHome misclassifies contractor, must cover workers’ comp claim | Insurance Business America
