HB 755 - SB 1127
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
February 27, 2025
Fiscal Analyst: John Jenkins | Email: john.jenkins@capitol.tn.gov | Phone: 615-741-2564
HB 755 - SB 1127
SUMMARY OF BILL: Removes the limit on the amount of wages or salary owed to a
deceased employee at the time of the employee’s death that an employer must pay directly to the
surviving spouse of the decedent, or if there is no surviving spouse, to the surviving children of the
decedent as tenants in common.
FISCAL IMPACT:
NOT SIGNIFICANT
Assumptions:
• Pursuant to Tenn. Code Ann. § 30-2-103(a)-(b), if an employee fails to designate a
beneficiary to receive payment for any wages or salary due to the employee at the time of
such employee’s death, the employer must pay any such wages or other compensation owed
the deceased employee, but only in an amount not to exceed $10,000, directly to the
surviving spouse of the decedent, or if none, then to the surviving children of the decedent
as tenants in common.
• The proposed legislation removes the $10,000 limit on the payment of such compensation,
such that the surviving spouse or children will receive the full amount of any wages or other
compensation owed to the deceased employee at the time of death.
• Any impacts to private employers as a result of removing this cap will be borne by those
private entities.
• It is assumed that the proposed legislation will also apply to public employers.
• However, because it is normal practice for public employees to be compensated by either
hourly wage or salary, are generally paid timely in regular intervals, and are assumed in most
cases to have a designated beneficiary, instances of public employees being owed an amount
greater than $10,000 at the time of their deaths that must be paid to survivors according to
the legislation are assumed to be rare.
• Any fiscal impact to state or local government is therefore estimated to be not significant.
HB 755 - SB 1127 2
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director