HB1194 • 2026

Employees, Employers

AN ACT to amend Tennessee Code Annotated, Title 4; Title 8 and Title 50, relative to E-Verify.

Labor

Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor: Cepicky, Hensley
Last action: 2026-03-30
Official status: Effective date(s) 01/01/2027
Effective date: Not listed

Plain English Breakdown

The bill summary and official digest do not provide specific details about the penalty clarifications mentioned in the candidate explanation. The effective date is January 1, 2027, as per the last action date.

Tennessee Lawful Employment Act Amendments

This bill changes Tennessee's definition of 'private employer' to include any person required by federal law to report employee pay and updates rules for using E-Verify.

What This Bill Does

Changes the definition of a private employer in Tennessee to anyone who must report how much they pay their employees, not just those with six or more workers.
Requires employers with over 35 full-time workers to use E-Verify if they hire someone after January 1, 2023.
Adds that an employer's business license can be suspended for violations of the employment verification rules.

Who It Names or Affects

Employers who must report employee pay under federal law
Employees whose employers are required to use E-Verify

Terms To Know

E-Verify: A system used by employers to check if a new hire is authorized to work in the United States.
Private employer: An individual or business that hires employees and must follow certain employment laws.

Limits and Unknowns

The bill does not specify what happens if an employer fails to submit evidence of compliance with the requirements.
It is unclear how many employers will be affected by this change in definition.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HA0565

Amendment 1-0 to HB1194

Plain English: The amendment changes Tennessee law so that businesses with just one employee must use E-Verify instead of those with at least six employees.

Changes the requirement for using E-Verify from having 'at least six (6) employees' to 'at least one (1) employee'.
Modifies the process and consequences if a private employer fails to submit evidence of compliance within forty-five days after receiving an order.

The exact impact on small businesses with only one or a few employees is not detailed in this amendment text.
Details about how local government will enforce the suspension of licenses are technical and may require further explanation.

SA0590

Amendment 1-0 to SB0990

Plain English: The amendment changes Tennessee law so that employers with just one employee must use E-Verify, instead of needing at least six employees.

Changes the requirement for using E-Verify from having 'at least six (6) employees' to 'at least one (1) employee'.
Modifies the process and consequences if an employer fails to submit evidence of compliance with E-Verify requirements.

The amendment text does not provide details on how this change will be enforced or what specific penalties apply for non-compliance beyond license suspension.

Bill History

2026-03-30 Tennessee General Assembly
Effective date(s) 01/01/2027
2026-03-30 Tennessee General Assembly
Pub. Ch. 622
2026-03-30 Tennessee General Assembly
Comp. became Pub. Ch. 622
2026-03-26 Tennessee General Assembly
Signed by Governor.
2026-03-17 Tennessee General Assembly
Transmitted to Governor for his action.
2026-03-17 Tennessee General Assembly
Signed by Senate Speaker
2026-03-16 Tennessee General Assembly
Signed by H. Speaker
2026-03-12 Tennessee General Assembly
Enrolled; ready for sig. of H. Speaker.
2026-03-12 Tennessee General Assembly
Passed Senate, Ayes 19, Nays 13
2026-03-12 Tennessee General Assembly
Amendment withdrawn. (Amendment 1 - SA0590)
2026-03-12 Tennessee General Assembly
Senate substituted House Bill for companion Senate Bill.
2026-03-12 Tennessee General Assembly
Sponsor(s) Added.
2026-03-12 Tennessee General Assembly
Companion House Bill substituted
2026-03-10 Tennessee General Assembly
Placed on Senate Regular Calendar for 3/12/2026
2026-03-09 Tennessee General Assembly
Received from House, Passed on First Consideration
2026-03-05 Tennessee General Assembly
Engrossed; ready for transmission to Sen.
2026-03-05 Tennessee General Assembly
Sponsor(s) Added.
2026-03-05 Tennessee General Assembly
Passed H., as am., Ayes 81, Nays 10, PNV 1
2026-03-05 Tennessee General Assembly
H. adopted am. (Amendment 1 - HA0565)
2026-03-03 Tennessee General Assembly
Recommended for passage with amendment/s, refer to Senate Calendar Committee Ayes 6, Nays 2 PNV 1
2026-02-24 Tennessee General Assembly
Placed on Senate Commerce and Labor Committee calendar for 3/3/2026
2026-02-23 Tennessee General Assembly
H. Placed on Regular Calendar for 3/5/2026
2026-02-23 Tennessee General Assembly
Reset on cal. for 3/5/2026
2026-02-19 Tennessee General Assembly
H. Placed on Regular Calendar for 2/23/2026
2026-02-18 Tennessee General Assembly
Placed on cal. Calendar & Rules Committee for 2/19/2026
2026-02-18 Tennessee General Assembly
Rec. for pass. if am., ref. to Calendar & Rules Committee
2026-02-11 Tennessee General Assembly
Placed on cal. Commerce Committee for 2/18/2026
2026-02-11 Tennessee General Assembly
Rec for pass if am by s/c ref. to Commerce Committee
2026-02-04 Tennessee General Assembly
Placed on s/c cal Banking & Consumer Affairs Subcommittee for 2/11/2026
2025-03-18 Tennessee General Assembly
Assigned to General Subcommittee of Senate Commerce and Labor Committee
2025-03-13 Tennessee General Assembly
Placed on Senate Commerce and Labor Committee calendar for 3/18/2025
2025-03-11 Tennessee General Assembly
Placed on Senate Commerce and Labor Committee calendar for 3/18/2025
2025-03-04 Tennessee General Assembly
Assigned to s/c Banking & Consumer Affairs Subcommittee
2025-03-04 Tennessee General Assembly
Ref. to Commerce Committee
2025-02-12 Tennessee General Assembly
P2C, caption bill, held on desk - pending amdt.
2025-02-12 Tennessee General Assembly
Passed on Second Consideration, refer to Senate Commerce and Labor Committee
2025-02-10 Tennessee General Assembly
Intro., P1C.
2025-02-10 Tennessee General Assembly
Introduced, Passed on First Consideration
2025-02-06 Tennessee General Assembly
Filed for introduction
2025-02-05 Tennessee General Assembly
Filed for introduction

Official Summary Text

ON MARCH 5, 2026, THE HOUSE ADOPTED AMENDMENT #1 AND PASSED HOUSE BILL 1194, AS AMENDED.

AMENDMENT #1 rewrites the bill to, instead, amend the definition of "private employer," as used in the Tennessee Lawful Employment Act, to include any person who is required by federal law and regulations to report remuneration paid to at least one emplo
yee. Present law defines "private employer" to mean any person who is required by federal law and regulations to report remuneration paid to at least six employees.

Present law requires private employers to request and maintain identification documents showing that a nonemployee has a valid immigration status and is able to work in the United States prior to the nonemployee providing labor or services. For employee
s, an employer may either request and maintain a copy of such a document or enroll in the E-Verify program prior to hiring an employee to verify work authorization status. However, present law requires an employer with more than 35 full-time equivalent e
mp
loyees to use the E-Verify program to verify work authorization status for employees hired on or after January 1, 2023. Present law authorizes the commissioner of labor and workforce development ("commissioner") to investigate complaints alleging violati
ons of these requirements. If the commissioner determines a violation has occurred, then the commissioner may issue an order detailing the findings of the investigation and the penalties that will apply for any violation.

Present law requires a private employer to submit evidence of compliance with the above requirements to the commissioner within 45 days of receiving a final order. If the private employer fails to submit such evidence, then the commissioner is required
to request an order requiring the appropriate local government to suspend the private employer's license until the employer remedies the violation.

This amendment clarifies that a private employer's business license must be suspended for a first or second violation until the employer remedies the violation. However, for a third or subsequent violation, the local government must suspend the private
employer's business license permanently.

This amendment changes the effective date from January 1, 2026, to January 1, 2027, and clarifies that its provisions apply to conduct occurring and employees hired on or after that date.

Current Bill Text

Read the full stored bill text

SENATE BILL 990
By Hensley

HOUSE BILL 1194
By Cepicky

HB1194
003113
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 4;
Title 8 and Title 50, relative to E-Verify.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 50-1-703(a)(6)(B), is amended by
adding the following language after the last sentence:
The office shall, using existing resources, create and publish a report on the number of
employers that the office has enrolled in E-Verify or conducted work authorization status
checks on behalf of pursuant to this section.
SECTION 2. This act takes January 1, 2026, the public welfare requiring it.