Federal & State Regulations | Employment contracts - Tennessee

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Summary of differences between federal and state regulations

Federal law generally does not regulate employment contracts between employers and employees with one exception: contracts that require the joining or refraining from joining of a labor union as a condition of employment. On the federal level, these contracts are governed by the National Labor Relations Act. States may have a corresponding provision and may also have additional provisions regarding employment contracts.

Tennessee law has a similar provision to federal concerning union membership. It has additional provisions regarding employment contracts.

Union membership

It is unlawful for an employer to enter into any contract or agreement, either oral or written, which denies employment to an individual based on union membership or non-membership. §50-1-202

Misrepresentation of wages

An employer may not misrepresent to an employee the amount of wages which the employee is to receive on entering into a new contract of employment. Violation of this provision results in the employer being subject to a penalty of not less than five hundred dollars ($500) nor more than one thousand dollars ($1,000) at the discretion of the commissioner. §50-2-104

Waiver of rights

An individual can not be required to enter into an agreement to waive his or her rights to unemployment compensation benefits, nor pay any portion of the employer’s required premiums. §50-7-708