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HB 541

Water Pollution - As enacted, requires the division of water resources in the department of environment and conservation, in collaboration with U.S. army corps of engineers, as necessary, to annually report information concerning compensatory mitigation provisions in aquatic resource alteration permits issued during the prior fiscal year to the governor, the comptroller of the treasury, and the chairpersons of the commerce committees; and to establish four categories of isolated wetlands for regulatory purposes; makes related changes. - Amends TCA Title 4; Title 11, Chapter 14, Part 4; Title 66; Title 67, Chapter 4, Part 4 and Title 69.

114th Regular Session (2025-2026) Introduced by Kevin Vaughan

Phased plan to raise the state minimum wage to $15/hour by 2027, with expanded paid leave and unemployment protections to boost workers' economic security.

Comp. became Pub. Ch. 437
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Bill Summary · HB 541

HB 541 — Economic Security Act

Status: Passed 1st Reading
Introduced: November 12, 2024
Subject areas: wages/minimum wage, paid leave, unemployment insurance, taxation (EITC), public health & workplace protections, workers’ compensation, state/local employees, studies and appropriations

Main purpose / intent

The Economic Security Act is a broad, multi-topic bill intended to strengthen worker economic security and workplace protections. Its central aims are to (1) raise the state minimum wage in phases to $15/hour, (2) establish or expand paid leave and equal-pay protections, (3) restore and study unemployment insurance benefits (including for gig workers), and (4) provide special protections and compensation measures tied to pandemic-related workplace exposures and claims. The bill also includes tax-credit reinstatements and various labor‑market reforms (e.g., “ban the box,” anti–wage-theft measures).

Key provisions (high level)

  • Minimum wage increase (phased):
    • Labor Day 2023 — $8.00/hour
    • Labor Day 2024 — $9.50/hour
    • Labor Day 2025 — $11.00/hour
    • Labor Day 2026 — $13.00/hour
    • Labor Day 2027 — $15.00/hour
    • (Each step applies unless overridden by higher federal FLSA changes; the bill replaces the prior statutory wage schedule.)
  • Equal Pay:
    • Creates an “Equal Pay” framework prohibiting pay differentials based on sex for the same classification of work, with limited exceptions (seniority, skill, bona fide factors). Allows administrative complaints and civil actions with attorneys’ fees and two-year statute of limitations from discovery.
  • Paid sick and family/medical leave:
    • Establishes requirements for employer-provided paid sick leave and family medical leave (details in new “Healthy Families and Healthy Workplaces” article).
  • Unemployment insurance:
    • Restores unemployment benefits indexed/adjusted for inflation and requires study of UI coverage for app-based/gig economy workers.
  • Tipped wage & wage-theft:
    • Increases tipped minimum wage and strengthens enforcement and penalties for wage theft.
  • Criminal-history screening:
    • Implements “ban the box” style rules to limit employers’ use of criminal records in hiring decisions (requirement for fair assessment).
  • Public-employee collective bargaining:
    • Repeals specified restrictions (reinstates broader collective-bargaining rights for some public employees).
  • Pandemic-related worker protections and compensation:
    • Creates a rebuttable presumption that certain first responders, health care and essential workers who contracted COVID-19 did so in the course of employment.
    • Requires local governments to credit leave taken while quarantined.
    • Mandates hazard pay for certain state essential employees during the pandemic and appropriates funds for that purpose.
    • Appropriates funds to resolve pandemic-related state employee workers’ compensation claims and directs legislative study of hazard pay for private and local workers.
  • Tax provisions:
    • Reenacts an Earned Income Tax Credit (EITC) and reinstates child & dependent care tax credits (as described in the bill’s synopsis).
  • Studies and reporting:
    • Directs Legislative Research Commission (or equivalent) studies on UI for gig workers and on hazard pay provision to private/local sectors.

Who is affected

  • Workers: low‑wage and tipped workers, first responders, healthcare workers, essential workforce, gig/app‑based workers (subject to study), minors (where applicable), and public employees.
  • Employers: private employers and local governments face higher labor costs (wage increases, paid-leave mandates) and new compliance obligations (equal-pay records, anti–wage-theft enforcement).
  • State and local governments: possible fiscal impacts from hazard-pay mandates, leave credits, UI changes, and appropriations for workers’ compensation settlements.
  • Taxpayers/state budget: potential revenue impacts from reinstated tax credits and appropriations for hazard pay/compensation funds.

Procedural / timing notes

  • The bill includes staged minimum‑wage increases tied to Labor Day dates (2023–2027). Other provisions take effect at the time the act becomes law or as specified within the bill.
  • As of the provided status, HB 541 had passed its first reading. Implementation of many provisions will require administrative rules, agency guidance, and (for tax/appropriations items) budget allocations.

Potential impacts / considerations

  • Employer labor costs would rise gradually, with greater effects for sectors with many low‑wage workers (retail, hospitality, food service).
  • The bill could reduce income inequality and increase worker leave access, but may raise compliance and fiscal pressures for smaller employers and local governments.
  • Several provisions (UI for gig workers, hazard-pay extensions) require follow‑up study and administrative design to define eligibility and funding sources.
  • Exact fiscal effects on state and local budgets are not quantified in the bill text and would depend on appropriations, implementation scope, and behavioral responses.

For detailed statutory language and implementation timelines, consult the bill text and committee reports referenced in the legislative record.

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

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