Tuesday, February 17, 2009

State Legislation affecting Tennessee Employers

I've been focusing as of late on federal law changes but last Thursday (Feb. 12, 2009) was the unlimited filing deadline for the Tennessee senators to submit proposed legislation. After Thursday, each senator is limited to proposing nine bills.

If there is one thing that our Tennessee government does well it is websites. The Supreme Court, the Governor and the General Assembly all have first class websites. For this post, I went to the Tennessee General Assembly website and searched for bills containing the word "employer." You can see the total results of the search here: http://wapp.capitol.tn.gov/apps/billsearch/billsearchadvanced.aspx?terms=employer&searchtype=all

Several bills struck me as interesting - bearing in mind that I am not attempting to forecast which of these has a chance at passing.

Senate Bill 0156 would codify the "at will" employment doctrine, preclude handbooks from being construed to create a contract of employment and permit discharges except for certain exceptions. It appears this bill has already been withdrawn.

SB0381/HB0873 would permit private employers to pay employees on a monthly basis.

SB0469/HB0480 would amend the THRA so that an "English only" employment policy is not a discriminatory practice if it is a legitmate business necessity. Current law at least arguably already permits this.

SB0682/HB1161 would amend the Tennessee Public Protection Act (which prohibits discharging employees for refusing to participate in or remain silent about illegal activities) but the changes appear to be largely cosmetic.

SB1442/HB0775 would enact the "Healthy Families Act" and require private employers who employ twenty-five (25) or more employees for twenty (20) or more weeks in a calendar year to provide at least seven (7) days of paid sick and vacation leave annually for employees who work more than thirty (30) hours a week. Employees who work not less than twenty (20) nor more than thirty (30) hours a week shall receive at least four (4) days of paid sick and vacation leave annually. Employees who work not less than one thousand (1,000) nor more than one thousand five hundred (1,500) hours annually shall receive at least two (2) days of paid sick and vacation leave annually. Leave would have to be approved in advance unless there is a "bona fide emergency or health condition which prevents the employee from giving notice in advance." Paid sick and vacation leave may be used to address the employee's own medical needs or the medical needs of the employee's immediate family.

SB1664/HB0776 would adopt the Pay Equity in the Workplace Act. This was introduced in 2007 but failed to pass despite receiving considerable attention. It would do much the same as the Paycheck Fairness Act pending in Congress (though, because of the way "employer" is defined, this bill would apply only to the smallest employers).

SB1731/HB0397 would prohibit employers from requiring employees to use vacation time while on family or medical leave.

SB1752/HB0826 would require employers to pay tipped employees at a rate not less than the standard federal minimum wage per hour but would permit credit for tips or gratuities received to be counted toward the minimum wage calculation. SB1902/HB0064 would also affect tipped employee wages. While the wording of this bill is somewhat different it would accomplish the same purpose as SB1752/HB0826. Neither bill does much more than what federal regulations already require except that federal law requires employers pay at least $2.13 an hour while this would require payment of half the minimum wage, the end result, requiring minimum wage, is the same. Unlike federal law, neither bill says anything about calculating overtime for tipped employees.

HB0311/SB0083 would prohibit local governments from adopting minimum wage laws.

HB0256/SB0661 would exclude from workers' compensation injuries that occur during recreational activities, are not required by the employer, and do not directly benefit the employer. This would address the confusion generated by the inconsistent decisions in Young v. Taylor-White, LLC, 181 S.W.3d 324, 330 (Tenn. 2005), which held that the employee's voluntary recreational activities were not within the course of employment and Gooden v. Coors Tech. Ceramic Co., 236 S.W.3d 151, 153 (Tenn. 2007), which "clarified" that the voluntary nature of an activity is only one factor to consider in determining whether an injury occurs in the course of employment. Golden then held that the employee's participation in the recreational activity in question was a regular incident of employment because the employer knowingly permitted the activity to occur several times a week.

Clicking on the bill numbers will take to a page that shows the current status of each bill so you can periodically check to see whether any of them might be moving toward passage.

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