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SB 1127

Estates - As enacted, removes the cap on the amount of wages or other compensation owed a deceased employee at the time of the employee's death that an employer shall pay directly to the surviving spouse of the decedent or, if there is no surviving spouse, to the surviving children of the decedent as tenants in common. - Amends TCA Title 30 and Title 31.

114th Regular Session (2025-2026) Introduced by Paul Rose

Tennessee removes wage payment caps to surviving spouses/children, allowing employers to pay full deceased employee compensation directly without probate court involvement.

Comp. became Pub. Ch. 194
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Bill Summary · SB 1127

Legislative bill overview

SB 1127 eliminates the cap on wages and compensation that employers must pay directly to the surviving spouse or children of a deceased employee. Previously, Tennessee law limited this amount; the bill removes that restriction entirely, allowing full unpaid wages to pass directly to heirs outside the probate process.

Why is this important

This change simplifies estate settlement for working families by allowing surviving dependents to access earned wages without court involvement, reducing delays and legal costs during financial hardship. It recognizes that unpaid wages are arguably the employee's personal earnings rather than estate assets requiring formal probate procedures.

Potential points of contention

  • Creditor concerns: Removing the cap may disadvantage the deceased employee's creditors, who might otherwise have claims against the estate; creditors could lose priority access to assets
  • Employer liability: Companies need clear guidance on verification procedures to avoid disputes over who qualifies as a "surviving spouse" or "child," potentially increasing administrative burden
  • Estate planning conflicts: Heirs receiving direct wage payments outside probate might complicate overall estate distributions if the deceased left a will with different intentions for asset allocation

Compiled from official sources — confirm details with the bill’s official record.

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