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HB1399 • 2026

Salaries and Benefits

AN ACT to amend Tennessee Code Annotated, Section 8-23-203; Title 12 and Title 50, Chapter 2, relative to the minimum wage.

Labor
Did Not Pass

The latest official action shows that this bill did not move forward in that session.

Sponsor
Pearson, Akbari
Last action
2026-02-11
Official status
Failed for lack of second in: Banking & Consumer Affairs Subcommittee
Effective date
Not listed

Plain English Breakdown

The bill did not pass, so it has no effective date or further implications beyond its introduction.

Minimum Wage Increase Act

This bill sets a minimum wage of $20 per hour or the federal minimum wage (whichever is higher) for employees in Tennessee and requires employers to follow certain rules about paying overtime.

What This Bill Does

  • Sets the minimum hourly wage at $20 or the federal minimum wage, whichever is higher.
  • Requires employers to pay time-and-a-half (1.5 times regular rate) for any work over 40 hours in a week.
  • Needs employers to post information about wages and rules where workers can easily see it.
  • Allows employees to sue their employer if they do not get paid the correct minimum wage or overtime.
  • Requires the Tennessee Labor Commissioner to help enforce these rules with federal labor officials.

Who It Names or Affects

  • Employees who work in Tennessee.
  • Employers who hire workers in Tennessee.

Terms To Know

Minimum wage
The lowest amount of money an employer is allowed to pay an employee for one hour of work.
Overtime
Extra hours worked beyond the standard 40-hour week, usually requiring higher pay rates.

Limits and Unknowns

  • The bill did not pass and is no longer being considered.
  • Some workers are exempt from this law if they are also exempt under federal rules.

Bill History

  1. 2026-02-11 Tennessee General Assembly

    Failed for lack of second in: Banking & Consumer Affairs Subcommittee

  2. 2026-02-04 Tennessee General Assembly

    Placed on s/c cal Banking & Consumer Affairs Subcommittee for 2/11/2026

  3. 2026-02-04 Tennessee General Assembly

    Action Def. in s/c Banking and Consumer Affairs Subcommittee to 2/11/2026

  4. 2026-01-28 Tennessee General Assembly

    Placed on s/c cal Banking & Consumer Affairs Subcommittee for 2/4/2026

  5. 2026-01-26 Tennessee General Assembly

    Meeting Canceled

  6. 2026-01-21 Tennessee General Assembly

    Placed on s/c cal Banking & Consumer Affairs Subcommittee for 1/28/2026

  7. 2025-03-26 Tennessee General Assembly

    No Action Taken

  8. 2025-03-25 Tennessee General Assembly

    Assigned to General Subcommittee of Senate Commerce and Labor Committee

  9. 2025-03-19 Tennessee General Assembly

    Placed on s/c cal Banking & Consumer Affairs Subcommittee for 3/26/2025

  10. 2025-03-19 Tennessee General Assembly

    Action Def. in s/c Banking and Consumer Affairs Subcommittee to 3/26/2025

  11. 2025-03-19 Tennessee General Assembly

    Placed on Senate Commerce and Labor Committee calendar for 3/25/2025

  12. 2025-03-18 Tennessee General Assembly

    Action deferred in Senate Commerce and Labor Committee to 3/25/2025

  13. 2025-03-13 Tennessee General Assembly

    Placed on Senate Commerce and Labor Committee calendar for 3/18/2025

  14. 2025-03-12 Tennessee General Assembly

    Placed on s/c cal Banking & Consumer Affairs Subcommittee for 3/19/2025

  15. 2025-03-11 Tennessee General Assembly

    Placed on Senate Commerce and Labor Committee calendar for 3/18/2025

  16. 2025-02-12 Tennessee General Assembly

    Assigned to s/c Banking & Consumer Affairs Subcommittee

  17. 2025-02-12 Tennessee General Assembly

    P2C, ref. to Commerce Committee- Government Operations for Review

  18. 2025-02-12 Tennessee General Assembly

    Passed on Second Consideration, refer to Senate Commerce and Labor Committee

  19. 2025-02-10 Tennessee General Assembly

    Intro., P1C.

  20. 2025-02-10 Tennessee General Assembly

    Introduced, Passed on First Consideration

  21. 2025-02-06 Tennessee General Assembly

    Filed for introduction

  22. 2025-02-06 Tennessee General Assembly

    Filed for introduction

Official Summary Text

MINIMUM WAGE

This bill requires

a
n employer
to
pay an employee wages at an hourly rate not less than the greater of
(i) t
he federal minimum wage established pursuant to the federal Fair Labor Standards Act of 1938, as amended
,
or
(ii)
$20 an hour.
However, an
employer
must
not pay an employee less th
an one and 1.5 times the regular wage rate for any work done by the employee in excess of 40 hours during a work week.

An employer subject to this
bill

must
keep a summary of this
bill
and any applicable wage rules posted in a conspicuous and accessible p
lace in or about the premises of the employer's place of business.

VIOLATIONS
–
ENFORCEMENT

This bill provides that an
employer who violates the minimum wage requirements of this
bill
is liable to the employee affected for the amount of unpaid minimum
wages. Upon a judgment being rendered in favor of an employee in an action brought in a court of competent jurisdiction to recover unpaid wages under this
bill
, the judgment must include, in addition to the unpaid wages adjudged to be due, an amount equal
to the unpaid wages as damages. In addition to a judgment awarded to the employee, the court
must
require the employer to pay court costs and reasonable attorneys' fees incurred by the employee.

This bill requires an
action to recover damages pursuant
to this
bill to
be instituted within two years from the date the wages were due, except in a case where the complaint filed with the court alleges the employer willfully violated this
bill. In such a case,
the action to recover damages must be instituted
within three years.

In the administration of this
bill
,
this bill requires
the commissioner of labor and workforce development
to
cooperate, to the fullest extent, with the administrator of the wage and hour division of the United States department of la
bor.

APPLICABILITY

This bill clarifies that (i) it does
not affect or in any way diminish the right of employees to bargain collectively through representatives of the employees' own choosing in order to establish wages in excess of the applicable minim
um wages under this
bill and (ii) e
mployees excluded
pursuant to federal law relative to minimum wage and maximum hour requirements
are exempt from this
bill
to the same extent
such
employees are exempt under
such
federal law.

RULEMAKING

Within existing
resources of the department,
this bill requires
the commissioner
of labor and workforce development to
promulgate rules to effectuate this
bill
that are consistent with the federal Fair Labor Standards Act of 1938.

Current Bill Text

Read the full stored bill text
SENATE BILL 1357
By Akbari

HOUSE BILL 1399
By Pearson

HB1399
003061
- 1 -

AN ACT to amend Tennessee Code Annotated, Section 8-
23-203; Title 12 and Title 50, Chapter 2, relative to
the minimum wage.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Title 50, Chapter 2, Part 1, is amended by
adding the following as a new section:
50-2-116.
(a) As used in this section:
(1) "Commissioner" means the commissioner of labor and workforce
development;
(2) "Department" means the department of labor and workforce
development;
(3) "Employ" means to permit or suffer to work in employment or a gainful
occupation;
(4) "Employee" means a person born or naturalized in the United States
and subject to the jurisdiction thereof, or a person legally present in this country,
either of whom is employed by an employer;
(5) "Employer" includes an individual, partnership, association,
corporation, business trust, legal representative, or any organized group or
persons acting directly or indirectly in the interest of an employer in relation to an
employee; and
(6) "Wages" means compensation paid to an employee in the form of
legal tender of the United States or checks or drafts on banks negotiable into

- 2 - 003061

cash on demand or upon acceptance at full value. Wages may include the
reasonable cost to the employer, as determined by the commissioner, of
furnishing meals or lodging to an employee, if furnished by the employer and
used by the employee.
(b) An employer shall pay an employee wages at an hourly rate not less than the
greater of:
(1) The federal minimum wage established pursuant to the federal Fair
Labor Standards Act of 1938 (29 U.S.C. § 201 et seq.), as amended; or
(2) Twenty dollars ($20.00) an hour.
(c) Notwithstanding subsection (b), an employer shall not pay an employee less
than one and one-half (1.5) times the regular wage rate for any work done by the
employee in excess of forty (40) hours during a work week.
(d) An employer subject to this section shall keep a summary of this section and
any applicable wage rules posted in a conspicuous and accessible place in or about the
premises of the employer's place of business.
(e) An employer who violates the minimum wage requirements of this section is
liable to the employee affected for the amount of unpaid minimum wages. Upon a
judgment being rendered in favor of an employee in an action brought in a court of
competent jurisdiction to recover unpaid wages under this section, the judgment must
include, in addition to the unpaid wages adjudged to be due, an amount equal to the
unpaid wages as damages. In addition to a judgment awarded to the employee, the
court shall require the employer to pay court costs and reasonable attorneys' fees
incurred by the employee.
(f) An action to recover damages pursuant to this section must be instituted
within two (2) years from the date the wages were due, except in a case where the

- 3 - 003061

complaint filed with the court alleges the employer willfully violated this section, then the
action to recover damages must be instituted within three (3) years.
(g) In the administration of this section, the commissioner shall cooperate, to the
fullest extent with this section, with the administrator of the wage and hour division of the
United States department of labor.
(h) This section does not affect or in any way diminish the right of employees to
bargain collectively through representatives of the employees' own choosing in order to
establish wages in excess of the applicable minimum wages under this section.
(i) Employees excluded pursuant to 29 U.S.C. § 213 are exempt from this
section to the same extent the employees are exempt under the federal law.
(j) Within existing resources of the department, the commissioner shall
promulgate rules to effectuate this section that are consistent with the federal Fair Labor
Standards Act of 1938. The rules must be promulgated in accordance with the Uniform
Administrative Procedures Act, compiled in title 4, chapter 5.
SECTION 2. If any provision of this act or its application to any person or circumstance
is held invalid, then the invalidity does not affect other provisions or applications of the act that
can be given effect without the invalid provision or application, and to that end, the provisions of
this act are severable.
SECTION 3. For purposes of promulgating rules, this act takes effect upon becoming a
law, the public welfare requiring it. For all other purposes, this act takes effect July 1, 2025, the
public welfare requiring it.