Tennessee Senate Bill SB1357

Tennessee 2025-2026 Regular Session

• Introduced: 2/6/25

Caption

AN ACT to amend Tennessee Code Annotated, Section 8-23-203; Title 12 and Title 50, Chapter 2, relative to the minimum wage.

Summary

SB1357 would create a new Tennessee minimum wage law requiring most employers to pay covered employees the greater of the federal minimum wage or $20.00 per hour. It also requires overtime pay at 1.5 times the regular rate for hours worked over 40 in a workweek, requires employers to post a summary of the law, and authorizes the labor commissioner to adopt rules to implement the section consistent with the federal Fair Labor Standards Act. The bill defines key terms such as employer, employee, and wages, and it incorporates federal exemptions by excluding employees exempt under 29 U.S.C. § 213 to the same extent they are exempt under federal law. It also preserves collective bargaining rights for wages above the minimum and provides a private right of action for unpaid wages, including liquidated damages equal to the unpaid wages, plus court costs and reasonable attorney’s fees. Claims would generally have to be filed within two years, or three years for willful violations.

Impact

If enacted, the bill would significantly alter Tennessee wage law by establishing a state minimum wage floor of $20 per hour, which is far above the current federal minimum wage, and by creating state overtime, enforcement, and rulemaking provisions in Title 50. It would affect employers across the state, especially low-wage industries, and would give employees a statutory cause of action to recover unpaid minimum wages and related damages. The bill also directs the Department of Labor and Workforce Development to promulgate implementing rules within existing resources and makes the act effective July 1, 2025, with immediate effect for rulemaking purposes.

Sentiment

No committee transcripts or recorded votes were provided, so there is no direct evidence of legislative debate or formal support/opposition in the materials supplied. Based on the bill text alone, the proposal appears strongly pro-worker and expansionary in wage protections, but the absence of voting history or discussion means the overall sentiment cannot be measured from the record provided.

Contention

The main point of contention is likely the proposed $20 hourly minimum wage, which would substantially increase labor costs for employers and could draw opposition from business groups, while likely being supported by labor advocates and worker-rights proponents. Additional issues that may generate debate include the bill’s private enforcement mechanism, liquidated damages and attorney’s fees, and the incorporation of federal exemptions, which determine which categories of workers would be covered. Because no transcripts were provided, specific positions by legislators or stakeholders are not available.