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Committee advances bill lowering employer threshold for verification; license-suspension penalties included
Summary
House Bill 11 94 moves out of the Commerce Committee after an amendment. The bill lowers the employee threshold for employer verification from six to one and authorizes temporary and permanent suspension of business licenses for noncompliance; committee voted 20–0 to advance.
The Commerce Committee approved House Bill 11 94 and sent it to Calendar and Rules after the sponsor described the bill's changes to employer verification law.
The sponsor said the bill lowers the threshold of paid employees required to be considered a private employer under the Tennessee lawful employment act from six employees to one, expanding documentation and verification requirements. He described consequences for noncompliance: the Department of Labor and Workforce Development may seek an order for summary action to suspend a private employer's business license for a first or second violation temporarily and permanently suspend the license for subsequent violations.
Representative Lynn questioned how professional employer organizations (PEOs) that handle payroll and W-2s out of state would be treated; the sponsor and department staff said the state verification requirement still applies and offered to follow up with affected employers. The committee voted 20–0 to advance the amended bill to Calendar and Rules.
