Tennessee Code Annotated
Tenn. Code Ann. § 50-6-240 (2026)
Approval or rejection of settlement agreements
✓ current as of May 2026
- (a) The interested parties shall have the right to settle all matters of compensation between themselves, but all settlements shall be reduced to writing and shall be approved by a judge of the court of workers' compensation claims before they are binding on either party. It shall be the duty of the judge of the court of workers' compensation claims to whom any proposed settlement is presented for approval under this chapter, to examine the proposed settlement to determine whether the employee is receiving, substantially, the benefits provided by this chapter. Upon approving the settlement, a judgment shall be rendered on the settlement by the court of workers' compensation claims and duly entered by the clerk. The cost of the proceeding shall be borne by the employer. In all cases where the settlement proceedings or any other court proceedings for workers' compensation under this chapter involve a subsequent injury wherein the employee would be entitled to receive or is claiming compensation from the subsequent injury and vocational recovery fund provided for in § 50-6-208, the administrator shall be made a party defendant to the proceedings in an action filed by either the employer or the injured employee, and an attorney representing the bureau under the supervision of the attorney general and reporter shall represent the administrator in the proceeding. The court of workers' compensation claims, by its decree, shall determine the right of the employee to receive compensation from the fund.
- (b) A workers' compensation judge shall approve or reject settlements submitted to the bureau within three (3) business days after the settlement has been received by the bureau and assigned to a workers' compensation judge for consideration.
- (c) In approving settlements, a workers' compensation judge shall consider all pertinent factors and if the injured employee is not represented by counsel, then the workers' compensation judge shall thoroughly inform the employee of the scope of benefits available under this chapter and the employee's rights and the procedures necessary to protect those rights.
- (d) Nothing in this section shall be construed to prohibit the parties from compromising and settling the issue of future medical benefits at any time; provided, that the settlement agreement is approved by a judge of the court of workers' compensation claims, and includes a provision confirming that the employee has been informed of the potential consequences of the settlement, if any, with respect to medicare and TennCare benefits and liabilities. Notwithstanding any other provision of this chapter, an employee who is determined to be permanently and totally disabled shall not be allowed to compromise and settle the employee's rights to future medical benefits.
- (e) Notwithstanding any other provision of this section, if there is a dispute between the parties as to whether a claim is compensable, or as to the amount of compensation due, the parties may settle the matter without regard to whether the employee is receiving substantially the benefits provided by this chapter; provided, that the settlement is determined by a workers' compensation judge to be in the best interest of the employee.
- (f) No party may settle a claim for permanent disability benefits unless the settlement agreement has been approved by a workers' compensation judge. Any settlement agreement not approved pursuant to this section is void.
Acts 1992, ch. 900, § 15; 1996, ch. 944, § 23; 2013, ch. 289, § 84; 2015, ch. 341, §§ 13, 15; 2016, ch. 816, § 2; 2017, ch. 344, § 1.
Notes of Decisions
Cited in 22
cases (12 in the last 5 years), 2000–2026 · leading case: Dennis v. Erin Truckways, Ltd., 188 S.W.3d 578 (Tenn. 2006).
Dennis v. Erin Truckways, Ltd., 188 S.W.3d 578 (Tenn. 2006). “Because Tennessee Code Annotated section 50-6-240 (2005) provides that “[a] settlement is not effective unless it is approved in accordance with § 50-6-206,” the settlement was not “effective” and is not entitled to the same standing as a judgment.”
Lane Sr., Antonio v. Securemedy, Inc., 2020 TN WC App. 26 (Tenn. Work. Comp. App. Bd. 2020). “Tenn. Code Ann. § 50-6-240 (d) (2019) (emphasis added).”
Johnson, Dorothy v. Pilgrim's Pride, Inc., et al., 2016 TN WC App. 19 (Tenn. Work. Comp. App. Bd. 2016). “See Tenn. Code Ann. § 50-6-240 (e) (2015). Employee signed the written settlement agreement, but made a notation beneath her signature which purported to read "stress duress.”
Peppers, Joseph v. ThyssenKrupp Elevator Corp., 2018 TN WC App. 54 (Tenn. Work. Comp. App. Bd. 2018). “” Tenn. Code Ann. § 50-6-240 (a) (2018) (emphasis added).”
Torres, Miguel v. Allvan Corp., 2025 TN WC App. 6 (Tenn. Work. Comp. App. Bd. 2025). “This is an accepted claim, so unless there is a 0% rating, the proposed documents do not identify any dispute of compensability or extent of disability that would support a doubtful settlement under TCA 50-6-240(e). The Court may be unable to approve a doubtful settlement under…”
Turner, David v. Pee Dee Country Enter., Inc., 2021 TN WC App. 68 (Tenn. Work. Comp. App. Bd. 2021). “” Tenn. Code Ann. § 50-6-240 (a). Can a workers’ compensation judge refuse to find that a settlement secures substantially the benefits to which the injured worker is entitled because the 20% attorney’s fee is unreasonable or thought by the judge to be unreasonable? Will the…”
Oldham, John v. Freeman Webb Co. Realtors d/b/a Sunnybrook, 2024 TN WC App. 41 (Tenn. Work. Comp. App. Bd. 2024). “” Tenn. Code Ann. § 50-6-240 (e). Any settlement of permanent disability benefits is not “binding on either party” until approved by the court, and any settlement not so approved is “void.”
Valesia Kennard v. Mid-South Transp. Mgmt., Inc. (Tenn. Ct. App. 2026). “, with Tenn. Code Ann. § 50-6-240 (a) (providing general authority for parties to settle “all matters of compensation between themselves,” but requiring the workers’ compensation judge “to determine whether the employee is receiving, substantially, the benefits provided by this…”
Welsh v. Universal Fasteners, Inc., 51 S.W.3d 196 (Tenn. 2000). “from the date of the initial request for a benefit review conference 1 until thirty [30] days after either a written agreement or a written report is filed with the commissioner pursuant to section 50-6-240.” [emphasis added] This report is required to include “A statement of…”
Limberakis, George v. Pro-Tech Sec., Inc., 2017 TN WC App. 51 (Tenn. Work. Comp. App. Bd. 2017). “Tennessee Code Annotated section 50-6-240(d) (2016) allows parties to compromise and settle the issue of future medical benefits, but any such agreement must be reviewed and approved by a workers’ compensation judge.”
Peppers, Joseph v. Thyssenkrupp Elevator Co. of North Am., 2018 TN WC 80 (Tenn. Ct. Work. Comp. Cl. 2018). “Tennessee Code Annotated section 50-6-240 provides, "all settlements shall be reduced to writing and shall be approved by a judge of the Court of Workers' Compensation Claims before they are binding on either party.”
Hurd, James v. Kellogg Co., 2018 TN WC 207 (Tenn. Ct. Work. Comp. Cl. 2018). “See Tenn. Code Ann. § 50-6-240 (e) (2018). Mr.”
— Tenn. Code Ann. § 50-6-240(a)(1) — 1 case
Carpenter, Joesph v. Am. Water Heater Co., 2024 TN WC 24 (Tenn. Ct. Work. Comp. Cl. 2024).
— Tenn. Code Ann. § 50-6-240(d) — 3 cases
Lane Sr., Antonio v. Securemedy, Inc., 2020 TN WC App. 26 (Tenn. Work. Comp. App. Bd. 2020). “Tenn. Code Ann. § 50-6-240 (d) (2019) (emphasis added).”
Limberakis, George v. Pro-Tech Sec., Inc., 2017 TN WC App. 51 (Tenn. Work. Comp. App. Bd. 2017). “Tennessee Code Annotated section 50-6-240(d) (2016) allows parties to compromise and settle the issue of future medical benefits, but any such agreement must be reviewed and approved by a workers’ compensation judge.”
McMillian, Lanell v. ULG Companies, LLC, 2025 TN WC App. 41 (Tenn. Work. Comp. App. Bd. 2025).
— Tenn. Code Ann. § 50-6-240(e) — 3 cases
Torres, Miguel v. Allvan Corp., 2025 TN WC App. 6 (Tenn. Work. Comp. App. Bd. 2025). “This is an accepted claim, so unless there is a 0% rating, the proposed documents do not identify any dispute of compensability or extent of disability that would support a doubtful settlement under TCA 50-6-240(e). The Court may be unable to approve a doubtful settlement under…”
Johnson, Dorothy v. Pilgrim's Pride, Inc., et al., 2016 TN WC App. 19 (Tenn. Work. Comp. App. Bd. 2016). “See Tenn. Code Ann. § 50-6-240 (e) (2015). Employee signed the written settlement agreement, but made a notation beneath her signature which purported to read "stress duress.”
Valesia Kennard v. Mid-South Transp. Mgmt., Inc. (Tenn. Ct. App. 2026). “, with Tenn. Code Ann. § 50-6-240 (a) (providing general authority for parties to settle “all matters of compensation between themselves,” but requiring the workers’ compensation judge “to determine whether the employee is receiving, substantially, the benefits provided by this…”
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