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TennesseeSB 1377114th General Assembly (2025-2026)Senate

AN ACT to amend Tennessee Code Annotated, Title 50 and Title 65, Chapter 15, Part 3, relative to employer-employee relationships.

Sponsored By: Sponsor information unavailable

Signed by Governor

Insurance, Health, Accident

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

Contractor status rules now allow benefits

Marketplace platforms can include portable benefit account contributions in compensation offers to contractors. Providing medical or other insurance benefits no longer, by itself, prevents marketplace contractor status. Platforms are not required to offer benefits. For personal vehicles covered by Tennessee motor-carrier law, control, direction, or management is judged using the 20-factor test.

Voluntary benefit accounts for independent contractors

Tennessee independent contractors can open accounts to fund health, income replacement, life insurance, retirement, and other common benefits. Contractors choose a third-party provider: a bank, investment firm, or technology service working through either. The account belongs to a benefit-plan beneficiary, not the hiring party. Individuals and organizations can contribute voluntarily, including companies that hire contractors. Companies can use their own money or deduct money from contractor pay. Pay deductions require a clear written agreement, prominently shown in the work contract or a separate notice. Contractors must opt in and can opt out at any time. Contributions cannot count toward deciding employee or contractor status, which uses Tennessee’s 20-factor test. The law took effect upon enactment and does not require contributions or set contribution amounts.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

  • Paul Bailey

    Republican • Senate

  • Adam Lowe

    Republican • Senate

  • Becky D. Massey

    Republican • Senate

  • Reeves

    Affiliation unavailable

  • Stevens

    Affiliation unavailable

  • Brent Taylor

    Republican • Senate

  • Ken Yager

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 117 • No: 17

Senate vote • 3/20/2025

FLOOR VOTE: as Amended Third Consideration 3/20/2025

Yes: 27 • No: 3

House vote • 3/20/2025

FLOOR VOTE: REGULAR CALENDAR PASSAGE ON THIRD CONSIDERATION 3/20/2025

Yes: 82 • No: 13

Senate vote • 3/11/2025

SENATE COMMERCE AND LABOR COMMITTEE

Yes: 8 • No: 1

Actions Timeline

  1. Effective date(s) 04/03/2025

    4/8/2025

  2. Pub. Ch. 131

    4/8/2025

  3. Signed by Governor.

    4/3/2025Senate

  4. Transmitted to Governor for action.

    3/25/2025Senate

  5. Signed by H. Speaker

    3/24/2025House

  6. Signed by Senate Speaker

    3/24/2025Senate

  7. Enrolled and ready for signatures

    3/20/2025Senate

  8. Sponsor(s) Added.

    3/20/2025Senate

  9. Passed H., Ayes 82, Nays 13, PNV 0

    3/20/2025House

  10. Am. withdrawn. (Amendment 1 - HA0054)

    3/20/2025House

  11. Subst. for comp. HB.

    3/20/2025House

  12. Engrossed; ready for transmission to House

    3/20/2025Senate

  13. Passed Senate as amended, Ayes 27, Nays 3, PNV 2

    3/20/2025Senate

  14. Senate adopted Amendment (Amendment 1 - SA0084)

    3/20/2025Senate

  15. Placed on Senate Regular Calendar for 3/20/2025

    3/18/2025Senate

  16. Sponsor(s) Added.

    3/11/2025Senate

  17. Recommended for passage with amendment/s, refer to Senate Calendar Committee Ayes 8, Nays 1 PNV 0

    3/11/2025Senate

  18. Placed on Senate Commerce and Labor Committee calendar for 3/11/2025

    3/5/2025Senate

  19. Action deferred in Senate Commerce and Labor Committee to 3/11/2025

    3/4/2025Senate

  20. Placed on Senate Commerce and Labor Committee calendar for 3/4/2025

    2/25/2025Senate

  21. Placed on Senate Commerce and Labor Committee calendar for 3/4/2025

    2/25/2025Senate

  22. Sponsor(s) Added.

    2/24/2025Senate

  23. Passed on Second Consideration, refer to Senate Commerce and Labor Committee

    2/12/2025Senate

  24. Introduced, Passed on First Consideration

    2/10/2025Senate

  25. Filed for introduction

    2/6/2025Senate

Bill Text

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