SB0990 • 2026

Employees, Employers

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

Labor

Enacted

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

Sponsor: Hensley, Cepicky
Last action: 2026-03-30
Official status: Comp. became Pub. Ch. 622
Effective date: Not listed

Plain English Breakdown

The official summary text does not provide specific details about penalties for non-compliance beyond suspending licenses. The exact nature of penalties is inferred from the context but may require further verification.

Tennessee Lawful Employment Act Amendments

This law changes how 'private employer' is defined in Tennessee and updates rules about using E-Verify to check if employees are allowed to work in the U.S.

What This Bill Does

Changes the definition of a private employer to include anyone who must report money paid to at least one employee by federal laws, not just those with six or more employees.
Requires all private employers with over 35 full-time equivalent employees to use E-Verify for new hires and existing employees hired after January 1, 2023.
Adds penalties for private employers who do not follow the rules: their business license can be temporarily suspended until they fix any violations; permanent suspension applies for third or subsequent violations.

Who It Names or Affects

Private employers who must report money paid to employees by federal law
Employees hired after January 1, 2023, for large private employers

Terms To Know

E-Verify: A program used by employers to check if new hires are allowed to work in the United States.
Private employer: An individual or business required by federal law to report money paid to employees.

Limits and Unknowns

The effective date of January 1, 2027, means the changes will not take effect until then.
It is unclear how many employers this change will affect since it depends on federal reporting requirements.

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 employers with just one employee must use E-Verify, instead of needing at least six employees.

Changes the number of employees required for an employer to use E-Verify from 'at least six (6) employees' to 'at least one (1) employee'.
Modifies the requirement that private employers submit evidence of compliance with E-Verify within forty-five days after a final order, and adds consequences if they fail to comply.

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.
It is unclear from the provided information how this significant reduction in employee threshold might affect small businesses and administrative processes.

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 number of employees required for an employer to use E-Verify from 'at least six (6) employees' to 'at least one (1) employee'.
Modifies the requirement that private employers must submit evidence of compliance with E-Verify within forty-five days after a final order, and outlines consequences if they fail to do so.

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.
It is unclear from the provided information how this change might affect small businesses with only one employee.

Bill History

2026-03-30 Tennessee General Assembly
Comp. became Pub. Ch. 622
2026-03-30 Tennessee General Assembly
Effective date(s) 01/01/2027
2026-03-30 Tennessee General Assembly
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
Sponsor(s) Added.
2026-03-12 Tennessee General Assembly
Companion House Bill substituted
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.
2026-03-10 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
Passed on Second Consideration, refer to Senate Commerce and Labor Committee
2025-02-12 Tennessee General Assembly
P2C, caption bill, held on desk - pending amdt.
2025-02-10 Tennessee General Assembly
Introduced, Passed on First Consideration
2025-02-10 Tennessee General Assembly
Intro., P1C.
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

HOUSE BILL 1194
By Cepicky

SENATE BILL 990
By Hensley

SB0990
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.