HB 2540

Present law requires the commissioner of human resources ("commissioner"") to perform certain human resources functions authorized in present law if requested by state organizations. This bill, instead, authorizes the commissioner to perform such functio ns, rather than requires. JOB OPENINGS Present law requires the commissioner to give public notice of a job opening at least one week prior to the closing of the application period. This bill eliminates that requirement. REASSIGNED INCUMBENT EMPLOYEES Present law authorizes an incumbent employee in an executive service position that is reassigned to the preferred service to be given a noncompetitive assessment. The commissioner must certify that the employee has met the minimum qualifications to reta in the position. Upon such certification, the employee must be classified as a preferred service employee. However, an employee who is not certified must be dismissed from the position no later than 60 days after certification if the minimum qualificati on s are not met. This bill eliminates the present law described in this paragraph. REJECTION OF APPLICATIONS Present law authorizes the commissioner to reject the application of any person for admission to an assessment or to strike the name of a person from a pool if the department of human resources (""department"") makes certain determinations. This bill adds that an application may be rejected if the department determines that an applicant has used the application to harass, intimidate, or abuse the hiring process or persons involved in the hiring process. POOL OF CANDIDATES Present law requires the commissioner to establish and maintain a pool of candidates for various classes of positions as the commissioner deems necessary. This bill eliminates that requirement. FILLING POSITIONS Present law establishes the process for filling a position in a preferred service position by an appointing authority. This bill eliminates such process. Present law authorizes the commissioner to adopt appropriate procedures for filling positions involving basic clerical, unskilled or semiskilled labor, or domestic, attendant, or custodial work. This bill, instead, requires the commissioner to adopt appr opriate procedures for filling positions where education or certification is not necessary. The commissioner may also provide input on all contracts with the private sector to fill such positions, including involvement in communications with an employee wh ose job may be terminated as the result of a contract with a private party. DISCIPLINE BY SUPERVISORS Present law makes a supervisor responsible for maintaining the proper job performance level, conduct, and discipline of the employees under their supervision. Supervisors may administer disciplinary action when necessary, at the step appropriate to the infraction, conduct, or performance. Any written warning or follow-up is void after two years if an employee has no additional disciplinary action. Further, at the employee's request, written warnings or follow-ups may be removed from the employee's per so nnel file. This bill eliminates the described provisions regarding the voidance or removal of written warnings in a personnel file. SALARY ADVANCEMENT Present law grants an automatic two-step salary advancement to any administrative assistant or administrative professional that passes the certified administrative professional examination. This bill eliminates that automatic pay increase. COUNSELORS, SOCIAL WORKERS, AND THERAPISTS IN CERTAIN INSTITUTIONS Present law prohibits persons from being hired for a position as a counselor in any educational or correctional institution unless that person possesses adequate training and competence in the field of counseling. This bill eliminates that prohibition. Present law prohibits a person from holding a position as a social worker in any mental health institution unless that person possesses adequate training and competence in the field of social work. This bill eliminates that prohibition. This bill requires the department to establish job classifications for marital and family therapists. This bill eliminates that requirement. EMPLOYEE APPEAL PROCEDURE Present law establishes a board of appeals within the department to hear appeals from employees, other than executive service employees. This bill eliminates the board of appeals and makes related changes to the employee appeal procedure. The employee appeal procedure in present law establishes a three-step procedure for an appeal concerning the application of a law, rule, or policy to the dismissal, demotion, or suspension of an employee. Step I requires the appealing employee to appeal in writing an d file such writing with the appealing employee's appointing authority. The appointing authority is required to issue a decision on the appeal within 20 days. Step II of the appeal process allows the appealing employee to file an appeal with the commissio ner if the appointing authority does not find in favor of the employee or does not issue a timely decision. The commissioner must issue a decision in writing within 30 days. Present law also provides for Step III of the appeals process, which allows an ap pealing employee to appeal a Step II decision to the board of appeals within the department. This bill leaves Steps I and II of the employee appeal process unchanged. However, it does eliminate Step III of the process. Therefore, employees may no longer appeal the decision of the commissioner to the board of appeals. CALCULATION OF TIME Present law provides the method for the computation of time for the purposes of the system of personnel administration for state employees. This bill replaces the current computation method. This bill provides that, when calculating a time period, the day an event or action occurs is not included. If the final day is on a Saturday, Sunday, or holiday, or a day the relevant office is closed, then the deadline extends to the next business day. This bill clarifies that, if a time period is shorter than 11 days, each Saturday, Sunday, holiday, or day on which the relevant office is closed does not count toward the time period. EMPLOYEE ASSOCIATIONS Present law authorizes employees of a state agency to authorize deductions from the employee's compensation to pay membership dues to certain employee associations. Present law provides that it is gross misconduct for any employee of this state to a participate or encourage work stoppage. An employee who c ommits such misconduct permanently forfeits the right to authorize payroll deductions for employee associations and may be subject to immediate termination. This bill eliminates all of the present law provisions regarding payroll deductions for state emp lo yees. Present law authorizes the chief elected officer of any employee association that qualifies for payroll deductions to take up to a two-year leave of absence without pay upon application to the employee's department head. This bill eliminates the allowan ce for the two-year leave of absence. Present law authorizes employees to use two days of their accrued annual leave to attend a statewide meeting, conference, or convention of an employee association that qualifies for payroll deductions. This bill eliminates that allowance. Present law provides the rights of employees of the state who become employees of a private contractor pursuant to a private contract for correctional services. This bill removes the requirement that such an employee be allowed to pay dues to a qualifie d employee organization through payroll deduction. Present law requires the department to afford representatives of recognized employee groups an opportunity to provide input on a proposes system of job performance evaluations. This bill eliminates that requirement. ANNUAL/SICK LEAVE Present law authorizes an employee to be required to present evidence to support the reason for any absence during the time for which sick leave was taken. Sick leave may not be denied if an employee provides a statement from a licensed physician or Chr istian Science practitioner. However, if there is substantial evidence of sick leave abuse by an employee, present law authorizes he appointing authority to require additional documentation. This bill clarifies that the appointing authority has discreti on to approve or to deny additional sick leave when there is evidence of sick leave abuse. Present law requires adoptive parents to be granted 12 weeks of special leave. This bill eliminates such special leave requirement. Present law requires all persons entitled to terminal leave who are subject to the state retirement system or teachers' retirement system to be compensated for their terminal leave prior to the effective date of their retirement. This bill eliminates th at requirement. Present law requires the estate of any employee to be compensated for the employee's unused and accrued sick leave in the same manner that estates are compensated for terminal leave. This bill eliminates that requirement. Present law authorizes a state employee who is a certified disaster service volunteer of the American Red Cross to be granted leave from work with pay for up to 15 work days to participate in specialized disaster relief services for the American Red Cros s. This bill, instead, authorizes all state employees to be granted up to five days of leave with pay to participate in disaster relief effort in the event of a natural disaster and the declaration of a state of emergency by the governor. Present law requires an eligible employee be granted absence from work with pay for six workweeks because of the birth of the employee's child or because of the placement of a child with the employee for adoption. This bill also requires that an eligibl e employee be granted up to six workweeks of leave to care for a family member with a serious health condition. SICK LEAVE BANK Present law authorizes the establishment of a sick leave bank and describes requirements for the trustees of the sick leave bank. This bill requires the board of trustees to be composed of the commissioners of human resources and of finance and administ ration, the state treasurer, the executive director of the fiscal review committee, or their designees, and three members from each grand division. The members from the grand division must be employed by a different department or agency and must be appoi nt ed by the commissioner. Further, this bill eliminates the requirement that the trustees draw lots to determine their term lengths. Present law describes when a state employee who has joined the sick leave bank loses the right to obtain the benefits from the bank. This bill clarifies that an employee loses the right to obtain such benefits when they are on an approved leave of absenc e. TENNESSEE STATE EMPLOYEES ASSOCIATION This bill requires authorized representatives of the Tennessee state employees association to have access to state employees in nonwork areas during, before, and after regular working hours, provided that there is no disruption to the operation of the wo rkplace. Further, all state offices and facilities must maintain a bulletin board on which authorized representatives of the Tennessee state employees association may post literature and representatives must be allowed to distribute literature in nonwork a reas, provided there is no disruption to the operation of the workplace. RULEMAKING This bill authorizes the department to promulgate rules to effectuate this bill. ON APRIL 16, 2026, THE SENATE ADOPTED AMENDMENT #2 AND PASSED SENATE BILL 1873, AS AMENDED. AMENDMENT #2 m akes technical corrections and clarifications, and makes the following substantive changes to this bill and present law concerning state employees: (1) Retains present law concerning payroll deduction for payment of membership dues; (2) For a Step I appeal, requires that all relevant evidence must be provided to the employee no less three business days in advance of the meeting (instead of ""in advance of the meeting""); (3) Adds procedures for judicial review of Step II decisions in the courts of M adison County ( for the Western Grand Division ), Williamson County ( for the Middle Grand Division ), and Washington County ( for the Eastern Grand Division ); (4) Adds that, i n a Step I appeal the employee may have a representative participate in the appeal, the department or agency is required to make an audio recording of the proceeding, and, u nless otherwise confidential by law, all records relevant to the disciplinary appeal, including the audio recording of a Step 1 appeal, must be made available upon the request of any party at a Step II appeal and for purposes of judicial review ; (5) Retains present law concerning expungement of a written warning from an employee's personnel file if the employee has no further disciplinary actions for two years; (6) Retains present law that authorizes an employee to use administrative leave to attend board meetings of an employee association that is qualified for payroll deduction of dues; (7) Replaces present law requiring that an employee entitled to annual leave must be compensated upon termination for the employee's unused accrued annual leave, based upon the number of months the employee worked beyond the officer's or employee's service anniversary date . This amendment instead requires that an employee entitled to annual leave m ust be compensated upon the completion of state service for the employee's unused accrued annual leave, based upon the number of months the employee worked bey ond the officer's or employee's service anniversary date ; (8) Adds that, i n the event no beneficiary is designated, the estate of an employee, upon the employee's death, must be compensated for the employee's unused sick leave in the same manner that the estates of deceased employees are compensated for terminal leave ; (9) Replaces the present law requirement that an employee sick bank board of trustees include one state employee from each grand division. This amendment instead requires that one board seat is filled by a preferred service employee, one by a n executive service employee, and o ne as an ""at-large"" position that may be filled by an employee in either the executive or preferred service. This amendment replaces the present law requirement that such members be elected by an employee organization (and this bill's requirement that the commissioner of human resources appoint such members ). This amendment instead requires the commissioner t o develop by rule a procedure for employees to elect these positions ; (10) Retains present law authorizing employee organizations having access to state employees in nonwork and public areas, and to post bulletin board material; (11) Deletes present law that authorizes an employee of a private prison contractor to b e a member of any qualified state employee organization and, if the employee so elects, to pay dues in the qualified employee organization through payroll deduction; and (12) Revises this bill's effective date so that the provision on disaster leave will take effect July 1, 2026, instead of January 1, 2027. All other provisions of this bill will take effect upon becoming a law or July 1, 2026, as specified in the full text of this amendment."