Employees, Employers

Plain English Breakdown

The exact penalties and enforcement mechanisms are not detailed beyond withholding funds.

Tennessee Employment Verification Act

This bill requires Tennessee's state and local government employers to use E-Verify to check work authorization before hiring new employees and allows the attorney general to withhold funds from non-compliant local governments.

What This Bill Does

• Requires all state and local governmental employers in Tennessee to verify the work authorization status of prospective employees using the federal E-Verify program starting July 1, 2026.
• Allows current third-party I-9 verification vendors until January 1, 2027, before switching to E-Verify.
• Prohibits state and local governmental employers from adopting any rules or policies that conflict with this requirement.
• Requires employers to keep records of E-Verify results for each employee during their employment period.
• Gives the attorney general authority to investigate complaints about non-compliance and withhold funds from violating local governments.

Who It Names or Affects

• State and local governmental employers in Tennessee
• Prospective employees seeking work with state or local government agencies

Terms To Know

E-Verify program

A federal system used to check the employment eligibility of new hires.

Local education agency (LEA)

An organization responsible for providing public education in a specific area, as defined by state law.

Limits and Unknowns

• The bill does not specify what happens to employees already hired before July 1, 2026.
• It is unclear how the transition period will be enforced or monitored for third-party vendors.

Official Summary Text

This bill prohibits a state or local governmental employer from (i) appointing or hiring a prospective employee on or after July 1, 2026, without verifying the work authorization status of such prospective employee by using the E-Verify program; or (ii)
adopting an ordinance, resolution, regulation, rule, policy, or guideline contrary to this bill. As used in this prohibition, a "state or local governmental employer" means this state and any branch, unit, or political subdivision of this state, includin
g
all boards, local education agencies (LEAs), commissions, agencies, institutions, authorities, counties, municipalities, metropolitan governments, and other bodies politic and corporate of this state, created by or in accordance with state law or rule. E
ach state or local governmental employer must maintain documentation of the E-Verify program inquiry results for each verified employee during the duration of employment showing that the employee is authorized to be employed by the employer.

This bill allows the attorney general to investigate each credible allegation or complaint that a local government or LEA has violated this bill. If the attorney general has concluded that a local government is not in compliance, then the attorney gener
al may enforce compliance by taking action to withhold all funds of the state that are allocated to the local government via grant, contract, or statute, including state-shared taxes. Additionally, if the attorney general finds that an LEA has violated t
hi
s bill, then the attorney general may take action against the local government that approves the budget of the LEA.

ENFORCEMENT OF LOCAL GOVERNMENT ACTIONS FOR COMPLIANCE WITH LAW

Present law authorizes the attorney general to review whether a local government action violates state law or the Constitution of Tennessee. If the attorney general concludes that a local government action so reviewed violates state law or the Constitut
ion of Tennessee, then the attorney general must provide to the local government's chief executive officer, governing body, or other subdivision of the local government that adopted the local government action written notice identifying the specific statu
to
ry or constitutional provision that the local government action is deemed to violate. The local government is given a certain amount of time to remedy the violation before the attorney general may pursue legal action, which may lead to the commissioner o
f finance and administration withholding all funds of the state allotted to the local government via grant, contract, or statute, including state-shared taxes, until the local government has resolved the violation.

Present law defines a "local government action," as used in the paragraph above, as an ordinance, regulation, or order adopted or promulgated by the chief executive officer or governing body of a local government or a regulation, rule, written policy, or
written guideline adopted by any agency, department, or other subdivision of the local government. This bill adds to the definition of such term an alleged failure to comply with this bill, or another duty or requirement to comply with state law relatin
g
to immigration enforcement or persons unlawfully present in this state.

ON MARCH 30, 2026, THE SENATE SUBSTITUTED HOUSE BILL 1705 FOR SENATE BILL 1922, ADOPTED AMENDMENT #1, AND PASSED HOUSE BILL 1705, AS AMENDED.

AMENDMENT #1 authorizes an employer that currently uses a third-party vendor for I-9 verification for prospective employees to continue to use such vendor, rather than the E-Verify program, until January 1, 2027. However, after that date, the employer m
ust begin using E-Verify.

Current Bill Text

HOUSE BILL 1705
By Rudd

SENATE BILL 1922
By Briggs
SB1922
011360
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 4;
Title 5; Title 6; Title 7; Title 8; Title 12 and Title 50,
relative to employment.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Title 50, Chapter 1, Part 1, is amended by
adding the following as a new section:
(a) As used in this section:
(1) "Employee" means a person, whether appointed, under contract, or
hired at-will or on an hourly basis, where an employee-employer relationship is
established, who provides services for an employer for which compensation is
paid regardless of whether such person renders less than a full day of service
per working day or less than a full week of service per working week;
(2) "Employer" means this state and any branch, unit, or political
subdivision thereof, including all boards, local education agencies (LEAs), as
defined in § 49-1-103, commissions, agencies, institutions, authorities, counties,
municipalities, metropolitan governments, and other bodies politic and corporate
of this state, created by or in accordance with state law or rule; and
(3) "E-Verify program" means the electronic verification system operated
by the United States department of homeland security, or its successor program,
as authorized by the Illegal Immigration Reform and Immigrant Responsibility Act
of 1996, Pub. L. No. 104-208, and the federal Basic Pilot Program Extension and
Expansion Act of 2003, Pub. L. No. 108-156.
(b) An employer shall not:

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(A) Appoint or hire a prospective employee on or after July 1, 2026,
without verifying the work authorization status of such prospective employee by
using the E-Verify program; or
(B) Adopt an ordinance, resolution, regulation, rule, policy, or guideline
contrary to the requirements of this section.
(c) An employer shall maintain documentation of the E-Verify program inquiry
results for each verified employee during the duration of employment showing that the
employee is authorized to be employed by the employer.
(d)
(1) The attorney general and reporter may investigate each credible
allegation or complaint that a local government or LEA has violated this section.
(2) If the attorney general and reporter concludes that:
(A) A local government has violated this section, then the attorney
general and reporter may enforce compliance with this section by taking
action in accordance with § 4-1-429 to withhold all funds of this state
allocated to the local government via grant, contract, or statute, including,
but not limited to, state-shared taxes; or
(B) An LEA has violated this section, then the attorney general
may enforce compliance with this section by taking action in accordance
with subdivision (d)(2)(A) against the local government that approves the
budget of the LEA.
(3) As used in this subsection (d), "local government" means a county,
including a county with a metropolitan or charter form of government, an
incorporated city or town, and each agency, department, or other subdivision of
thereof.

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SECTION 2. Tennessee Code Annotated, Section 4-1-429(f)(2), is amended by deleting
the subdivision and substituting:
(2) "Local government action" means:
(A) An ordinance, regulation, or order adopted or promulgated by the
chief executive officer or governing body of a local government or a regulation,
rule, written policy, or written guideline adopted by any agency, department, or
other subdivision of the local government; and
(B) An alleged failure to comply with SECTION 1, or another duty or
requirement to comply with state law relating to immigration enforcement or
persons unlawfully present in this state.
SECTION 3. This act takes effect July 1, 2026, the public welfare requiring it.