In a significant ruling for workers' compensation claims in Tennessee, the Workers' Compensation Appeals Board upheld a lower court's decision regarding Crystal Green's injury claim against 101 Vape & Smoke, LLC. The court ruled that the vape shop must provide benefits to Green, who alleged she injured her right ankle while working. This case, docket number 2024-50-3519, highlights the complexities surrounding the definition of an employer under Tennessee's workers' compensation laws.

The ruling matters because it clarifies how businesses with multiple entities may be viewed collectively when determining their status as employers. This decision could impact other businesses operating under similar structures, particularly in the growing vape industry.

Background

The dispute began when Crystal Green reported an injury on April 2, 2024, after tripping over a cord while working at 101 Vape & Smoke. Following her injury, Green sought workers' compensation benefits, but the company contested her claim. They argued that they did not meet the statutory definition of an “employer” under Tennessee law because they did not have five or more employees, a requirement outlined in Tennessee Code Annotated section 50-6-102(11).

Initially, the trial court held an expedited hearing on June 26, 2025, to determine whether 101 Vape & Smoke qualified as an employer. The court found that while Green did not provide sufficient evidence to prove the company employed five or more people, it could consider multiple related business entities operated by the same owners collectively. This led to an order requiring the company to provide a panel of physicians for Green's care while denying her claim for temporary disability benefits. Both parties appealed the ruling.

The Ruling

In its recent decision, the Workers' Compensation Appeals Board, led by Judge Pele I. Godkin and joined by Judges Timothy W. Conner and Meredith B. Weaver, affirmed the trial court's order and remanded the case back to the lower court. The board stated, "We conclude that Employee had not come forward with sufficient evidence to show a likelihood of prevailing on this issue at trial." This ruling reinforces the need for substantial evidence when establishing the employer-employee relationship in workers' compensation claims.

The board highlighted that 101 Vape & Smoke's owners operated multiple vape shops in the same area but did not provide adequate proof that the businesses should be considered as a single entity for the purpose of employee count. The court noted that the absence of a brief from the defendant on appeal limited their ability to contest the trial court's findings effectively.

Impact

This ruling has significant implications for employees seeking workers' compensation benefits in Tennessee, especially those working for businesses with multiple entities. By affirming the trial court's decision, the Appeals Board set a precedent that may influence how similar cases are handled in the future. Employers may need to be more diligent in understanding their obligations under the law, particularly if they operate multiple locations or related entities.

Furthermore, the decision emphasizes the importance of providing sufficient evidence in legal claims. Employers must be prepared to demonstrate their employee count accurately, while employees should gather comprehensive evidence to support their claims. This case could serve as a reference point for future disputes regarding workers' compensation eligibility.

What's Next

Following this ruling, the case will return to the lower court for further proceedings. 101 Vape & Smoke may still appeal the decision, but details on any potential appeal were not available in the court filing. The outcome of this case could influence other pending claims and set a benchmark for how similar disputes are resolved in the Tennessee workers' compensation system.