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HB1958 • 2026

Employees, Employers

AN ACT to amend Tennessee Code Annotated, Title 50, Chapter 2, Part 1, relative to employee compensation.

Labor
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Alexander, Reeves
Last action
2026-04-06
Official status
Comp. became Pub. Ch. 617
Effective date
Not listed

Plain English Breakdown

The exact date for applicability and enforcement is July 1, 2026.

Changes to Employee Compensation Rules

This law changes when employers must pay piece-work or commission employees for their work.

What This Bill Does

  • If an employee is paid based on how much they produce (piece-work) or a percentage of sales (commission), the employer must pay them by the last day of the month following the one in which the earnings were made, not earlier than the fifth day of that next month.
  • When piece-work or commission employees leave their job for any reason, employers must pay them by the end of the month after they left.
  • Employers cannot avoid paying these workers on time.

Who It Names or Affects

  • Employees who are paid based on how much they produce (piece-work) or a percentage of sales (commission).
  • Employers who have piece-work or commission employees in private jobs where five or more people work.

Terms To Know

Piece-work
A type of work where pay is based on the number of items produced or tasks completed, rather than hours worked.
Commission
Pay that is a percentage of sales made by an employee.

Limits and Unknowns

  • The law only applies to employees in private jobs where five or more people work.
  • It does not apply to government workers or those working for the state, counties, cities, towns, or other local governments.

Bill History

  1. 2026-04-06 Tennessee General Assembly

    Comp. became Pub. Ch. 617

  2. 2026-04-06 Tennessee General Assembly

    Effective date(s) 07/01/2026

  3. 2026-04-06 Tennessee General Assembly

    Pub. Ch. 617

  4. 2026-03-25 Tennessee General Assembly

    Signed by Governor.

  5. 2026-03-13 Tennessee General Assembly

    Transmitted to Governor for action.

  6. 2026-03-12 Tennessee General Assembly

    Signed by H. Speaker

  7. 2026-03-11 Tennessee General Assembly

    Enrolled and ready for signatures

  8. 2026-03-09 Tennessee General Assembly

    Comp. SB subst.

  9. 2026-03-09 Tennessee General Assembly

    Passed H., Ayes 95, Nays 0, PNV 0

  10. 2026-03-09 Tennessee General Assembly

    Subst. for comp. HB.

  11. 2026-03-05 Tennessee General Assembly

    H. Placed on Consent Calendar for 3/9/2026

  12. 2026-03-05 Tennessee General Assembly

    Sponsor(s) Added.

  13. 2026-03-04 Tennessee General Assembly

    Placed on cal. Calendar & Rules Committee for 3/5/2026

  14. 2026-03-04 Tennessee General Assembly

    Rec. for pass. ref. to Calendar & Rules Committee

  15. 2026-02-26 Tennessee General Assembly

    Rcvd. from S., held on H. desk.

  16. 2026-02-25 Tennessee General Assembly

    Placed on cal. Commerce Committee for 3/4/2026

  17. 2026-02-23 Tennessee General Assembly

    Engrossed; ready for transmission to House

  18. 2026-02-23 Tennessee General Assembly

    Passed Senate, Ayes 32, Nays 0

  19. 2026-02-20 Tennessee General Assembly

    Placed on Senate Consent Calendar 2 for 2/23/2026

  20. 2026-02-18 Tennessee General Assembly

    Rec. for pass by s/c ref. to Commerce Committee

  21. 2026-02-17 Tennessee General Assembly

    Recommended for passage, refer to Senate Calendar Committee

  22. 2026-02-11 Tennessee General Assembly

    Placed on s/c cal Banking & Consumer Affairs Subcommittee for 2/18/2026

  23. 2026-02-10 Tennessee General Assembly

    Placed on Senate Commerce and Labor Committee calendar for 2/17/2026

  24. 2026-02-05 Tennessee General Assembly

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

  25. 2026-02-04 Tennessee General Assembly

    Assigned to s/c Banking & Consumer Affairs Subcommittee

  26. 2026-02-04 Tennessee General Assembly

    P2C, ref. to Commerce Committee

  27. 2026-02-02 Tennessee General Assembly

    Intro., P1C.

  28. 2026-02-02 Tennessee General Assembly

    Introduced, Passed on First Consideration

  29. 2026-01-22 Tennessee General Assembly

    Filed for introduction

  30. 2026-01-22 Tennessee General Assembly

    Filed for introduction

Official Summary Text

Present law requires all wages or compensation earned by employees in private employment to be due and payable at least once per month.

As used in this provision, "private employment" means all employments in concerns where five or more employees are employed.

This definition does not include employment under the direct management, supervision, and control of the United States, this state, any county, incorporated city, town, or other municipal corporation or political subdivision of this state
,
or any o
ffice or department of the state or general government
.

This bill provides that if
an employee is employed on a piece-work or commission basis, then compensation earned is due and payable by the last day of the succeeding month.

SEPARATION

Present law requires an employee who leaves or is discharged from employment to be paid in full all wages or salary earned no later than the next regular pay day following the date of dismissal or voluntary leaving, or 21 days following the date of discha
rge or voluntary leaving, whichever occurs last.

This bill provides that
if an employee is employed on a piece-work or commission basis, then compensation earned is due and payable by the last day of the succeeding month following the date of discharge or voluntary leaving. An employer
must
not, by any means, secure an exemption from this
provision.

APPLICABILITY

This bill applies
to wages and compensation earned on or after
July 1, 2026.

Current Bill Text

Read the full stored bill text 
SENATE BILL 2024
By Reeves

HOUSE BILL 1958
By Alexander
HB1958
011553
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 50,
Chapter 2, Part 1, relative to employee
compensation.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 50-2-103(a)(2), is amended by
deleting the subdivision and substituting:
(2) For each employer that makes wage payments once monthly to employees
in private employments, all wages or compensation earned and unpaid prior to the first
day of any month are due and payable no later than the fifth day of the succeeding
month; except that, if an employee is employed on a piece-work or commission basis,
then compensation earned is due and payable by the last day of the succeeding month.
SECTION 2. Tennessee Code Annotated, Section 50-2-103(g), is amended by deleting
the subsection and substituting:
(g) Any employee who leaves or is discharged from employment must be paid in
full all wages or salary earned by the employee no later than the next regular pay day
following the date of dismissal or voluntary leaving, or twenty-one (21) days following the
date of discharge or voluntary leaving, whichever occurs last; except that, if an employee
is employed on a piece-work or commission basis, then compensation earned is due
and payable by the last day of the succeeding month following the date of discharge or
voluntary leaving. An employer shall not, by any means, secure an exemption from this
subsection (g).
SECTION 3. This act takes effect July 1, 2026, the public welfare requiring it, and
applies to wages and compensation earned on or after that date.