Jase Enterprises, LLC v. Tennessee Bureau of Workers' Compensation

This appeal concerns a penalty assessed against a company by the Tennessee Bureau of Workers’ Compensation (“the Bureau”). The Bureau assessed a penalty against Jase Enterprises, LLC (“Jase”), a construction company owned by Jason Usery (“Usery”), for failure to secure workers’ compensation insurance coverage. After a contested case hearing, the administrative law judge (“the ALJ”) upheld the penalty assessment but modified its amount. Jase petitioned for judicial review in the Chancery Court for Henderson County (“the Trial Court”). The Trial Court upheld the ALJ’s decision. Jase appeals to this Court, arguing among other things that it was not afforded due process and that the decision to assess a penalty against it was arbitrary. In particular, Jase argues that the evidence did not establish that Joe Sheldon (“Sheldon”) was a Jase employee. We find that Jase was afforded due process; it received adequate notice and had an opportunity to be heard. We find further that the penalty assessment against Jase was supported by substantial and material evidence, including Sheldon’s deposition. We affirm.