NASHVILLE, Tenn.—A Tennessee judge has ruled that an injured General Motors Corp. employee is entitled to greater benefits than typically allowed because of the automaker’s restructuring under bankruptcy reorganization, the worker’s attorney said Tuesday.

Under Tennessee law, the worker suffering from a damaged bicep tendon normally would be subject to an eight-year benefit cap, said Rocky McElhaney, an attorney at Rocky McElhaney Law Firm in Nashville, Tenn.

The cap applies if the employee returns to work for the company where he or she was injured.

The cap can be lifted, however, if the employee loses his or her job or the company changes ownership, said the attorney for Timothy Cook.

A Marshall County, Tenn., Circuit Court judge agreed with the workers comp claimant, essentially ruling that the cap should be lifted because GM filed for bankruptcy and formed a new company called General Motors Co. and known as the New GM.

The case is expected to go to trial in January, but GM’s attorneys have told him they plan to appeal the decision lifting the cap, Mr. McElhaney said.

Friday’s ruling could affect hundreds of worker injury cases, Mr. McElhaney added.