Tennessee Senate Bill SB2126

Tennessee 2023-2024 Regular Session

• Introduced: 1/29/24

Caption

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

Impact

The enactment of SB2126 is expected to significantly impact state labor laws by enhancing wage protections for workers and setting a precedent for future legislation regarding minimum wage advocacy. It also requires employers to maintain transparency by posting wage regulations at their business sites, ensuring employees are aware of their rights. In cases where employers violate these wage standards, the bill details steps for affected employees to seek judgements that include not only the unpaid wages but also damages and legal fees, thus encouraging accountability among employers. If the bill successfully passes, it would go into effect on January 1, 2025, barring any specified provisions that take effect immediately for rule promulgation.

Summary

Senate Bill 2126, introduced by Senator Kyle, proposes amendments to the Tennessee Code Annotated, specifically targeting regulations around minimum wage and employer obligations. The bill stipulates that all employers must pay their employees an hourly wage that is either no less than the federal minimum wage or a new minimum of $15.00 per hour, whichever is greater. Additionally, it mandates that employees who work beyond 40 hours in a week must be paid at a rate of one and a half times their regular wage, ensuring fair compensation for overtime work. The provisions underscore an increase in wage protections for Tennessee workers, aligning state standards with a higher baseline minimum wage and stricter compliance requirements for employers.

Contention

The discussions surrounding SB2126 have stirred various viewpoints among stakeholders. Supporters argue that the increase in minimum wage is necessary to meet the rising cost of living and to ensure all workers can earn a living wage. However, opponents worry that imposing higher wage mandates could lead to job losses and increased operational costs for businesses, especially small and mid-sized employers. They express concerns that the bill might drive businesses to reduce their workforce or adopt automation to manage these increased labor costs. The tension between workers’ rights to fair compensation and the economic responsibilities of employers remains a central point of contention in debates around this bill.