Tennessee Senate Bill SB2495

Tennessee 2025-2026 Regular Session

• Introduced: 2/2/26

Caption

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.

Summary

SB2495 would establish a new Tennessee state minimum wage law in Title 50. 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 commissioner of labor and workforce development would annually adjust the state minimum wage for inflation using the CPI-U, with the rate rounded to the nearest five cents and not reduced if the index declines. The bill 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 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 limitations period for wage claims, extended to three years for alleged willful violations, and directs the department to coordinate with federal wage-and-hour officials and adopt implementing rules consistent with the Fair Labor Standards Act.

Impact

The bill would add a new state wage standard that supersedes Tennessee’s current reliance on the federal minimum wage by setting a higher state floor and indexing it to inflation. It would affect most employers in Tennessee, while preserving federal exemptions for certain categories of employees excluded under 29 U.S.C. § 213 and preserving collective bargaining rights to negotiate higher wages. The measure would also expand enforcement exposure for employers by authorizing wage recovery lawsuits with damages, attorneys’ fees, and costs, and by requiring workplace posting and administrative rulemaking by the Department of Labor and Workforce Development.

Sentiment

No committee transcript or recorded vote information was provided, so there is no direct evidence of debate, support, or opposition in the supplied materials. Based on the bill text alone, the measure appears strongly pro-worker and pro-wage-increase, with a clear policy choice to raise the wage floor substantially and automatically adjust it over time. The absence of recorded discussion prevents a reliable assessment of legislative sentiment beyond the bill’s apparent intent.

Contention

The most likely points of contention are the size and timing of the wage increase, the automatic inflation adjustment, and the potential cost impact on employers, especially small businesses and labor-intensive industries. Supporters would likely emphasize higher earnings, inflation protection, and stronger wage enforcement for workers, while opponents would likely focus on increased labor costs, possible job or price effects, and expanded litigation risk through the damages and attorneys’ fees provisions. The bill’s exemption structure and consistency with federal law may also draw attention from stakeholders concerned about compliance and scope.