Human Resources: Tennessee Bill Seeks to Turn Back the Clock on Overtime Regulations

Democratic Senator John Ford of Memphis and a coalition of nine Democratic House members from around Tennessee have filed identical bills to adopt as Tennessee law the federal overtime regulations in effect before August 23, 2004. The Senate bill, No. 73, was introduced on January 13, 2005; the House counterpart was introduced on January 31, 2005.

The bill would make Tennessee employees eligible for overtime under the pre-August 23, 2004 Department of Labor overtime regulations, regardless of whether they were employed before August 22, 2004. The law would not, however, retain the salary levels of the old regulations, but would incorporate the amended salary levels of the new Federal Fair Pay Amendments.

The bill follows a failed attempt by Democrats to convince federal legislators to overturn the new overtime regulations, in passing the 2005 fiscal year budget. Critics of the new overtime rules maintain that they allow employers to deny overtime to many more workers than the old rules. Supporters disagree, contending that over a million more workers are now entitled to overtime.

The Tennessee bill's effect - if passed - is unclear. Tennessee currently does not have an overtime law, and the bill does not provide for an enforcement mechanism. If Tennessee courts allow an employee to sue to enforce the law, an employer could be sued for violating Tennessee law, despite full compliance with federal regulations. At the least, the conflicting rules would place employers in a confusing situation in deciding which employees are entitled to overtime.

For more information on any of these topics please feel free to contact any attorney in Waller Lansden's Labor & Employment Practice.

The opinions expressed in this bulletin are intended for general guidance only. They are not intended as recommendations for specific situations. As always, readers should consult a qualified attorney for specific legal guidance.

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