Workers Compensation - As enacted, adds a requirement that an award of attorneys' fees and costs incurred when an employer unreasonably denies a workers' compensation claim or unreasonably fails to timely initiate any of the benefits associated with the claim must be based on a finding by the workers' compensation judge that the employer's conduct was unreasonable; makes related changes. - Amends TCA Title 50, Chapter 6.

SB 1981 modifies Tennessee's workers' compensation law to protect employees in medical disputes. It specifically waives an employer's or their workers' compensation carrier's right to recover attorney fees or claim a subrogation lien if the employer contested medical aspects of the injury (causation, permanency, or extent) using a medical opinion different from the employee's C-42 panel physician. This change directly affects employees who successfully recover from third parties after such disputes. The bill also increases certain benefit percentages from 66⅔% to 75% and clarifies permanent disability benefit rules, but the core provision focuses on preventing employers from recouping costs when they dispute medical evidence.