AN ACT to amend Tennessee Code Annotated, Title 3; Title 4; Title 5; Title 6; Title 7; Title 8 and Title 50, relative to pay stubs.
SB1257 creates the “Pay Stub Protection Act” and requires employers to provide employees with a written or electronic statement of earnings and deductions for each pay period on payday. The statement must include basic identifying information and payroll details such as gross wages, net wages, deductions, pay date, pay period covered, and, for hourly employees, total hours worked, hourly rate, and overtime hours over 40 in a workweek.
If an employee does not receive the required statement, the employee may request it from the employer, and the employer must provide it within 10 days. If the employer still fails to comply, the employee may file a complaint with the Department of Labor and Workforce Development. The department must investigate, issue a written warning for a first violation, and, for repeat violations after a warning, hold a contested case hearing and may assess civil penalties of $50 to $500 per violation depending on the circumstances. The bill also directs the department to adopt rules to implement the new requirements.
The bill adds a new section to Tennessee Code Annotated Title 50, Chapter 2, Part 1, establishing statewide payroll statement requirements for employers and a complaint-and-enforcement process administered by the Department of Labor and Workforce Development. It creates new compliance obligations for employers, especially regarding itemized wage statements and overtime reporting for hourly workers, and authorizes administrative penalties for repeat noncompliance. The act takes effect July 1, 2025, with rulemaking authority effective immediately upon enactment.
Based on the bill text and the absence of recorded committee discussion or votes in the provided materials, the overall sentiment appears procedural and worker-protective rather than controversial. The measure is framed as a consumer-style transparency and enforcement bill for employees, with a graduated enforcement scheme that begins with a warning before penalties are imposed. No recorded opposition or support statements are available in the provided context.
The main potential points of contention are the new administrative burden on employers, the requirement to provide detailed wage statements, and the possibility of civil penalties for repeat violations. Employers may be concerned about compliance costs, recordkeeping, and the scope of the Department of Labor and Workforce Development’s enforcement authority. On the other hand, employees and worker advocates would likely support the bill’s transparency and enforcement provisions because they create a clear right to wage information and a remedy when pay stubs are not provided.