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Tennessee Updates

Civil Rights Enforcement

 

Tennessee’s HB 910 eliminates the Tennessee Human Rights Commission (THRC) effective July 1, 2025. Its core civil rights enforcement duties—such as investigating discrimination claims in employment—are transferred to a newly created Civil Rights Enforcement Division within the Tennessee Attorney General’s Office. This new division will be led by a director appointed by the Attorney General and will take over responsibilities previously handled by the THRC.
 

Bill Text: TN HB0910 | 2025-2026 | 114th General Assembly | Chaptered | LegiScan

 

 

 

Previous Updates

Tennessee Information Protection Act

 

Effective July 1, 2025, the Tennessee Information Protection Act (TIPA) gives Tennessee consumers privacy rights with respect to their personal data and establishes certain requirements and limitations for covered businesses.

The TIPA's protections do not apply to individuals acting in an employment context or to employment-related data.

 

 

Sexual Assault and Human Trafficking Training

 

Tennessee now requires sexual assault and human trafficking training for all servers in the state. This will be incorporated into the ABC server permit training. Employers should be aware that permits issued after January 1, 2025, will expire in two years, compared to five years with permits issued before January 1, 2025.

 

Tennessee General Assembly Legislation

 

Hours Worked Alignment With FLSA
 

Effective July 1, 2024, Tennessee defines work under its wage and hour law to have the same meaning as interpreted by the United States Supreme Court under the federal Fair Labor Standards Act (FLSA).

Employers can review the FLSA’s definitions of hours worked here.

COVID-19 Statute

Tennessee has removed a sunset provision of July 1, 2023 in its COVID-19 statute, which addresses vaccine mandates, mask requirements, COVID-19–related unemployment benefits, and Medicare and Medicaid vaccine requirements.  

Current requirements remain in place past July 1, 2023.
"Anti-Drag" Law

Governor Lee has signed Senate Bill 3/House Bill 9 to amend the Tennessee Code to prohibit adult-oriented performances that are harmful to minors.  “Adult cabaret performance” is defined as adult-oriented performances that feature go-go dancers, exotic dancers, strippers, male or female impersonators, or similar entertainers.  The law does not outlaw drag performances in general but prohibits shows that are “harmful to minors” to be performed in public or places where minors are allowed. Clubs, hospitality venues, and restaurants, as examples, will want to take note. If you host various events, you may want to do an audit to determine whether you want to make those events 18 and up.

This is effective April 1, 2023.
E-Verify Law

The Tennessee Lawful Employment Act (TLEA) requires all employers to demonstrate that they hire and maintain a legal workforce. Effective January 1, 2023, private employers with 35 or more employees under the same FEIN are required to use the federal E-Verify employment verification process. This applies to employees working in or outside the state of Tennessee. There are monetary penalties for non-compliance with the TLEA.
 
Private employers with fewer than 35 employees may choose to:
  1. Use E-Verify for newly hired employees, or
  2. Request and maintain documents under the TLEA’s list of authorized identity and employment eligibility documents. Acceptable documentation can be found here: https://www.tn.gov/workforce/employers/staffing-redirect/hiring-regulations/employment-verification.html.
Although not required for employers with fewer than 35 employees, using E-Verify may be helpful if an audit is conducted.  The TLEA covers not only employees but also “non-employees” as well. Non-employees are defined as individuals who, while not employed directlyare paid directly by the employer for labor or services. Companies in Tennessee are required to request and maintain copies of certain identity and work authorization documents for non-employees (see link in no. 2 above) unless an exception applies (i.e. workers are employed by a separate company).
 
FrankCrum offers an E-Verify service to assist with compliance for a fee.  Please contact your Account Manager if you would like more information on this service.  If your company chooses to E-Verify your new hires in-house, you may do so free of charge by creating an account at www.E-Verify.gov
 
Please reach out to your Account Manager with any questions.
CROWN Act

Effective July 1, 2022, the Tennessee CROWN Act prohibits employers from adopting policies that do not permit employees to wear their hair in braids, locs, twists or another manner that is culturally or physically associated with the employee's ethnic group.

 

Certain exceptions apply for public safety employees and policies adopted for reasonable safety reasons or to comply with health or safety laws and regulations.

 

Subminimum Wage

Effective July 1, 2022Tennessee will require employers to pay employees impaired by age, physical or mental deficiency, or injury, the full federal minimum wage, regardless of subminimum wages authorized under federal law.

 

Veterans Day

Tennessee employers must now allow employees who are veterans to have the entirety of Veterans Day in November off as an unpaid holiday if the employee provides advance notice and proof of veteran status. Exceptions apply if the employee's absence will impact public health or safety, or cause the employer significant economic or operational disruption.

 

 

Expanded Protections Relating to COVID-19 Vaccine Mandates

The Governor has signed legislation that supplements existing state law. The new law provides that “[a]n employer that requires a person to provide proof of vaccination or requires an individual receive the COVID-19 vaccine must grant the person an exemption to the policy if: (1) the person provides a valid reason for a medical exemption supported by a statement that has been signed and dated by a licensed healthcare provider; or (2) the person states that the person has a religious belief which prevents the person from complying with the policy.”

 

You can learn more here.

 

 

Tennessee Requires Pregnancy Accommodations

Effective October 1, 2020, a Tennessee employer with 15 or more employees is required to provide reasonable accommodations for an employee's limitations related to her pregnancy, childbirth or related medical conditions, unless doing so would create an undue hardship for the employer.

 

Reasonable accommodations include:

 

  • Making existing facilities used by employees readily accessible and usable;
  • More frequent, longer, or flexible breaks;
  • A private place, other than a bathroom stall, for the purpose of expressing milk;
  • Modified food or drink policy;
  • Modified seating or allowing the employee to sit more frequently if the job requires standing;
  • Providing assistance with manual labor and limits on lifting;
  • A temporary transfer to a vacant position;
  • Job restructuring or light duty, if available;
  • Acquisition or modification of equipment, devices, or an employee's work station;
  • A modified work schedule; and
  • Flexible scheduling for prenatal visits.

The law contains employee documentation requirements for certain reasonable accommodations. It also includes a list of actions an employer is prohibited from taking against a worker. Read more here.

 

Restrictions on Vaccine Requirements

The Governor signed new COVID-19 legislation restricting employers’ ability to require proof of COVID-19 vaccination and take adverse actions for refusing to show proof of vaccination if the employee or applicant objects to vaccination for any reason. Employees who are separated from employment for refusing a COVID-19 vaccine are entitled to unemployment benefits. If you are a private employer, you may continue to set your own masking policies.

 

While most employers cannot mandate their employees and applicants to show proof of COVID-19 vaccination status, the new law also creates an exemption process for federal contractors required to comply with federal law. If a federal government contractor or subcontractor can demonstrate that complying with the new TN law would result in the loss of federal funding, it may file for an exemption with the Tennessee Comptroller of the Treasury. The Tennessee Comptroller of the Treasury has established a website COVID-19 Exemption, which federal contractors or subcontractors can request an exemption.