*Red font in the legislation and regulation indicates changes from previous reporting

Tennessee – HB 539 (Independent Contractors)

Issue: Employee Classification

Affects:  Those who build pools/spas

Send comments to:  Regan Ratliff, rratliff@phta.org

Bill Summary: This bill requires the Tennessee Department of Labor and Workforce Development to use the 20-factor test used by the Internal Revenue Service (IRS) to determine whether an employer-employee relationship exists.  

An ‘employee’ is summarized as an individual who performs services for an employer for wages under a contract of hire if the services performed by the individual qualify as an employer-employee relationship with the employer under the twenty-factor test found in Internal Revenue Service Revenue Ruling or subsequent guidance, including minors, whether lawfully or unlawfully employed, and persons in executive positions, and includes county, metropolitan, and municipal government employees. 

Status: This bill was signed by the Governor and will take effect January 1, 2020.

Final Version: http://www.capitol.tn.gov/Bills/111/Amend/HA0115.pdf