June 2023

State Updates


Tennessee prohibits subminimum wages


Author: ADP Admin/Tuesday, July 5, 2022/Categories: Compliance Corner , State Compliance Update, Tennessee

Tennessee has enacted legislation (Senate Bill 2042), which prohibits employers from paying an employee who is impaired by age, physical or mental deficiency, or injury less than the federal minimum wage. Senate Bill 2042 will take effect on July 1, 2022.

The details:

The "Tennessee Integrated and Meaningful Employment Act" requires employers to pay an employee who is impaired by age, physical or mental deficiency, or injury no less than the federal minimum wage under the Fair Labor Standards Act, regardless of federal subminimum wage laws.

Covered employers:

The law covers an individual, partnership, association, corporation, business trust, legal representative, or organized group of persons, not involved in interstate commerce, acting directly or indirectly in the interest of an employer in relation to an employee.

Covered employees:

Under the Act, an employee as a person that is employed by an employer and is born or naturalized in, and subject to the laws of, the United States; or is legally present in the country.

Next steps:

Tennessee employers should ensure compliance with applicable minimum wage requirements.

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Tags: 07/07/22

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