AN ACT to amend Tennessee Code Annotated, Title 4; Title 5; Title 6; Title 7; Title 9; Title 13; Title 29; Title 47; Title 50; Title 57; Title 58; Title 65; Title 67 and Title 68, relative to wages.
HB2248 would establish a new Tennessee state minimum wage law. Beginning January 1, 2027, employers would be required to pay at least $20.00 per hour or the federal minimum wage, whichever is higher. Starting in 2028, the state minimum wage would be adjusted annually based on changes in the Consumer Price Index for Urban Consumers (CPI-U), with the commissioner of labor and workforce development publishing the updated rate each year.
The bill also requires overtime pay of at least 1.5 times the regular wage for hours worked over 40 in a workweek, requires employers to post a summary of the wage rules, and creates a private right of action for employees to recover unpaid wages, liquidated damages equal to the unpaid wages, court costs, and reasonable attorneys’ fees. It sets a two-year statute of limitations for wage claims, extended to three years for willful violations, and directs the department to coordinate with federal wage-and-hour authorities and adopt rules consistent with the federal Fair Labor Standards Act. The bill exempts employees already excluded under federal law and preserves collective bargaining rights for higher wages.
The bill would significantly expand state wage regulation by creating a Tennessee minimum wage floor where none is specified in the text of current law and by tying future increases to inflation. It would affect employers across the state, especially low-wage industries, and would give employees stronger enforcement tools through damages and attorney-fee recovery. It also defines wages to include the reasonable cost of meals or lodging when provided by the employer.
The available voting history suggests the bill faced opposition and did not advance in subcommittee, failing 4-1 in the House Banking and Consumer Affairs Subcommittee. No committee transcript is provided, so the broader discussion record is limited, but the vote outcome indicates the proposal was not broadly supported at that stage. Overall, the bill appears to have been a labor-policy measure aimed at raising pay standards, with likely support from worker advocates and resistance from business interests concerned about higher labor costs and compliance obligations.
The main point of contention is the size and timing of the wage increase, particularly the jump to $20 per hour in 2027 and automatic CPI-based indexing thereafter. Employers and business groups would likely object to the mandated wage floor, overtime and posting requirements, and expanded liability for wage violations, while labor advocates would likely support the bill as a means of improving pay, protecting workers, and strengthening enforcement.
HB2248 would amend Tennessee wage law by adding a new state minimum wage section to Title 50 and creating enforceable wage, overtime, notice, and remedies provisions. It would require employers to pay the higher of the federal minimum wage or a new state minimum wage, set at $20 per hour beginning in 2027 and indexed annually to inflation thereafter. The bill would also authorize employee lawsuits for unpaid wages, damages, costs, and attorney’s fees, while directing the labor department to promulgate implementing rules and coordinate with federal wage-and-hour enforcement.
The bill appears to have been viewed as a significant pro-worker wage proposal, but the recorded vote shows it encountered substantial resistance in committee. With a 4-1 failure in the House Banking and Consumer Affairs Subcommittee, the available history suggests limited legislative support at that stage. No transcript is available, but the outcome implies concern about the bill’s economic and regulatory effects outweighed support for the wage increase.
The central controversy is the proposed $20 minimum wage and automatic annual inflation adjustments, which would raise labor costs for employers and could affect hiring, pricing, and compliance burdens. Related points of contention include the bill’s overtime requirements, private right of action, liquidated damages, attorney’s fees, and posting obligations. Supporters would likely emphasize wage adequacy and worker protections, while opponents would likely focus on business impacts, especially for small employers and low-margin industries.