## Facts

- J & R Tavern operated a licensed beer business in one building and an unlicensed liquor-sales operation in a separate building on the same premises.
- Hobart H. Bowers worked as a salesman at both locations, requiring travel between the two buildings.
- On December 29, 1966, while making a sale at the unlicensed liquor location, Bowers was assaulted and seriously injured.
- Bowers sought benefits under Tennessee’s workers’ compensation statute.
- The chancellor found the facts undisputed and determined Bowers was knowingly violating Tennessee penal statutes at the time of injury.

## Issues

1. Whether an employee injured while knowingly engaging in acts that violate Tennessee penal statutes is entitled to workers’ compensation benefits.
2. Whether statutory language defining “employee” to include persons “whether lawfully or unlawfully employed” extends coverage to injuries incurred during the knowing commission of criminal acts.

## Decision

- The Tennessee Supreme Court affirmed the denial of benefits.
- The court held that workers’ compensation does not cover injuries sustained while an employee knowingly performs acts that themselves violate penal laws.
- The court interpreted the “lawfully or unlawfully employed” provision as addressing the legality of the employment relationship, not as authorizing compensation for injuries arising from criminal conduct in the performance of the work.

## Legal Principles

- Workers’ compensation may apply even if the employment relationship is unlawful, but not when the claim arises from the employee’s knowing performance of acts that are criminal under state penal statutes.
- Statutory inclusion of persons “whether lawfully or unlawfully employed” expands who may qualify as an employee, but does not eliminate the limitation that injuries incurred during knowing criminal conduct fall outside compensable employment.
- Public policy supports denying compensation where awarding benefits would effectively insure or underwrite criminal activity.

## Conclusion

The court held that an employee is not entitled to workers’ compensation for injuries sustained while knowingly committing acts that violate Tennessee’s penal statutes, and it affirmed the chancellor’s denial of benefits.


Bowers v. Gen. Guar. Ins. Co., 430 S.W.2d 871 (Tenn. 1968)