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TN SB2396

TN SB2396
AN ACT to amend Tennessee Code Annotated, Title 29 and Title 39, relative to criminal offenses.


summary

Introduced
02/02/2026
In Committee
Crossed Over
Passed
Dead

Introduced Session

114th General Assembly

Bill Summary

As introduced, creates the new criminal offenses of systematic unauthorized employment and aggravated systematic unauthorized employment; establishes the tort of unfair competition. - Amends TCA Title 29 and Title 39.

AI Summary

This bill establishes new criminal offenses related to the employment of unauthorized workers, defining "unauthorized worker" as someone without legal authorization to work in the U.S. and outlining a "pattern of systematic evasion of verification and reporting" as repeatedly failing to properly verify employment eligibility, report wages, or maintain accurate records for three or more workers within 24 months. It creates the crime of "systematic unauthorized employment" for those who engage in such patterns, misclassify workers to evade verification, or knowingly hire subcontractors employing unauthorized workers, with violations being a Class E felony. A more severe offense, "aggravated systematic unauthorized employment," is created for employers who commit systematic violations and also engage in practices like paying below minimum wage, creating false documents, maintaining unsafe conditions, retaliating against workers, or withholding wages, which is a Class D felony. Both offenses carry significant penalties, including restitution for unpaid wages and benefits, fines for businesses, and potential revocation of professional licenses and prohibition from contracting with the state. Additionally, the bill introduces a civil claim for "unfair competition," allowing businesses to sue competitors who have been convicted of or proven to have violated these employment laws, enabling them to recover damages, lost profits, and attorney fees if they can demonstrate competitive harm. The bill also clarifies that it does not authorize discrimination or selective enforcement based on protected characteristics and asserts Tennessee's authority to enforce these laws independently of federal immigration enforcement.

Committee Categories

Justice

Sponsors (1)

Last Action

Passed on Second Consideration, refer to Senate Judiciary Committee (on 02/05/2026)

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