HB 1194

ON MARCH 5, 2026, THE HOUSE ADOPTED AMENDMENT #1 AND PASSED HOUSE BILL 1194, AS AMENDED. AMENDMENT #1 rewrites the bill to, instead, amend the definition of "private employer, as used in the Tennessee Lawful Employment Act, to include any person who is required by federal law and regulations to report remuneration paid to at least one emplo yee. Present law defines ""private employer"" to mean any person who is required by federal law and regulations to report remuneration paid to at least six employees. Present law requires private employers to request and maintain identification documents showing that a nonemployee has a valid immigration status and is able to work in the United States prior to the nonemployee providing labor or services. For employee s, an employer may either request and maintain a copy of such a document or enroll in the E-Verify program prior to hiring an employee to verify work authorization status. However, present law requires an employer with more than 35 full-time equivalent e mp loyees to use the E-Verify program to verify work authorization status for employees hired on or after January 1, 2023. Present law authorizes the commissioner of labor and workforce development (""commissioner"") to investigate complaints alleging violati ons of these requirements. If the commissioner determines a violation has occurred, then the commissioner may issue an order detailing the findings of the investigation and the penalties that will apply for any violation. Present law requires a private employer to submit evidence of compliance with the above requirements to the commissioner within 45 days of receiving a final order. If the private employer fails to submit such evidence, then the commissioner is required to request an order requiring the appropriate local government to suspend the private employer's license until the employer remedies the violation. This amendment clarifies that a private employer's business license must be suspended for a first or second violation until the employer remedies the violation. However, for a third or subsequent violation, the local government must suspend the private employer's business license permanently. This amendment changes the effective date from January 1, 2026, to January 1, 2027, and clarifies that its provisions apply to conduct occurring and employees hired on or after that date."