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

Description

Fiscal Summary Not Available Bill Summary This bill criminalizes systematic unauthorized employment, which is when an officer, manager, or hiring agent with authority to act on behalf of an employer engages in any of the following conduct:  Recklessly engages in a pattern of systematic evasion of verification and reporting requirements. Misclassifies a worker as an independent contractor rather than an employee with intent to evade employment verification requirements. As a general contractor, employs a subcontractor, knowing that the subcontractor is employing unauthorized workers on the general contractor's project or in reckless disregard of obvious evidence of such employment. Knowingly uses or contracts with an independent contractor or subcontractor whose business is substantially reliant on unauthorized labor. This bill provides that such offense is classified as a Class E felony, punishable by a term of imprisonment of no less than one year nor more than six years, and a potential fine not to exceed $3,000. The sentencing court may order a person with convictions involving multiple victims to serve the sentences for each conviction consecutively. This bill provides that it is an affirmative defense, which must be proven by a preponderance of the evidence, that a general contractor required subcontractor compliance with employment verification laws in the subcontract, verified the subcontractor's compliance systems, and terminated the subcontractor upon discovering any violation. AGGRAVATED SYSTEMATIC UNAUTHORIZED EMPLOYMENT This bill provides that an employer commits aggravated systematic unauthorized employment if the employer violates systematic unauthorized employment and engages in any of the following conduct:  Commits a pattern of 10 or more knowing violations within a period of 2

Subjects

Progress

1. IntroducedFeb 3, 2026
2. Sent to committeeFeb 5, 2026