Tennessee Tells Local Governments to Stay Out of The Wage and Benefit Arena

On April 11, Governor  Haslam signed into law a  bill prohibiting local governments from mandating health insurance benefits, leave policies, hourly wage standards, or prevailing wage standards that deviate from existing requirements of state and federal law as a condition of doing business with or within the jurisdiction of the local government.

The new law means that cities and towns in Tennessee may not establish prevailing wages higher than the federal minimum wage and/or state or federal prevailing wages. Any such local laws already on the books  are no longer enforceable.

The new law also  includes a prohibition against local governments enacting so-called wage theft laws, stating that enforcement of existing wage statutes  is the right of the state and federal governments.

This is definitely a win for employers.

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3 thoughts on “Tennessee Tells Local Governments to Stay Out of The Wage and Benefit Arena

  1. Jean Grayson says:

    Have there been local govenment problems in these areas of concern or is Governor Haslam being proactive and ensuring these matter will not occur in Tennessee.

    • chatmaker says:

      Good question Jean. There had been some ordinances passed and others proposed in Shelby County. This law overturns those and essentially tells other local governments “don’t bother”.

  2. Jean Grayson says:

    Thanks Chad.

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