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Unemployment compensation — Tennessee

The Tennessee Employment Security Law (ESL) provides temporary compensation to those workers meeting the eligibility requirements of Tennessee law. Virtually all Tennessee employers are required by law to pay contributions in the form of a tax or “premium” to Tennessee’s unemployment compensation fund (the fund). Monies from this fund are used to pay unemployment benefits to eligible employees. Most Tennessee employers liable for Tennessee unemployment taxes are also liable for the federal unemployment tax.

In accordance with the provisions of the ESL, Tennessee’s unemployment compensation program is administered by the Tennessee Department of Labor and Workforce Development (DOL) Employment Security Division. The Employment Security Division of the DOL is responsible for processing unemployment insurance claims and appeals, determining employer tax rates and liability, and processing employers’ quarterly reports and premium payments.

An employer’s contribution to the fund is based on experience ratings, which relate employer taxes to the cost of providing unemployment benefits to its employees. Employers who have fewer employees receiving unemployment benefits are subject to lower rates. Thus, it is to the employer’s benefit to contest those claims that are without merit.

Which employers are covered

Almost...


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