HB2004

AN ACT to amend Tennessee Code Annotated, Title 8 and Title 50, Chapter 2, relative to employment.

Introduced·1/22/26

Tennessee HB2004 requires employers to compensate employees for unused accrued paid leave upon separation from service.

Tennessee HB2004 amends Tennessee Code to mandate that employers compensate employees for unused accrued paid leave when they separate from service. This compensation must be paid as wages at the employee's final rate of compensation, in a lump sum within thirty days of separation. The bill defines "paid leave" as annual leave or paid vacation leave that accrues to an employee's benefit. It also prohibits the forfeiture of accrued paid leave upon separation from service, though it allows for limitations on the total amount of leave that can accrue before requiring its use.

Included in complete analysis

  • Overview
  • Core Provisions
  • Implementation
  • Impact
  • Legal Framework
  • Critical Issues

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Where it stands

Current
In committee
Next
Committee decision

Sponsors

D
1
0
Democratic CaucusRepublican Caucus

History

Mar 4

House

Taken off notice for cal in s/c Banking and Consumer Affairs Subcommittee of Commerce Committee

Feb 25

House

Placed on s/c cal Banking & Consumer Affairs Subcommittee for 3/4/2026

Feb 11

House

Action Def. in s/c Banking and Consumer Affairs Subcommittee to 2/25/2026