(a)

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Terms Used In Tennessee Code 50-2-112

  • Contract: A legal written agreement that becomes binding when signed.
  • Highway: includes public bridges and may be held equivalent to the words "county way" "county road" or "state road". See Tennessee Code 1-3-105
  • State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
(1)

(A) Unless required by state or federal law, all additional wage or employment benefit mandates imposed on private employers by a local government are hereby preempted.
(B) Notwithstanding a charter, ordinance, or resolution to the contrary, a local government shall not require, as a condition to doing business within the jurisdictional boundaries of the local government or contracting with the local government, a private employer to pay its employees an hourly wage in excess of the minimum hourly wage required to be paid by such employer under applicable federal or state law, nor does a local government have the authority to impose a wage or employment benefit mandate on a private employer.
(C) A local government entity shall not, through its purchasing or contracting procedures, seek to control or affect the wages or employment benefits provided by its vendors, contractors, service providers, or other parties doing business with the local government. A local government shall not, through the use of evaluation factors, qualifications of bidders, or otherwise award preferences on the basis of wages or employment benefits provided by its vendors, contractors, service providers, or other parties doing business with the local government.
(D) A local government may offer its own employees wage and employment benefits.
(2) With respect to construction contracts, a local government has no authority to require a prevailing wage be paid in excess of the wages established by the prevailing wage commission for state highway construction projects in accordance with title 12, chapter 4, part 4 or the Tennessee occupational wages prepared annually by the department of labor and workforce development, employment security division, labor market information for state building projects.
(b) As used in this section:

(1) “Employment benefits” means anything of value that an employee may receive from an employer in addition to wages and salary, including, but not limited to, health benefits; disability benefits; death benefits; group accidental death and dismemberment benefits; paid days off for holidays, sick leave, vacation, and personal necessity; additional pay based on schedule changes; retirement benefits; and profit-sharing benefits;
(2) “Local government” means a county, incorporated city or town, metropolitan government, or an agency or unit thereof, or other political subdivision of this state; and
(3) “Wage or employment benefit mandate” means a requirement adopted by a local government which requires a private employer to pay any or all of its employees a wage rate or provide employment benefits not otherwise required under state or federal law.
(c) If compliance with this section by a local government relative to a specific contract, project, or program would result in the denial of federal funds that would otherwise be available to the local government, then the local government may require a private employer to pay its employees a wage necessary to meet the federal requirements to obtain the federal funds, but only relative to such contract, project, or program.
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