Tennessee requires all employers with 35 or more employees to use the federal E-Verify system to confirm new hire work eligibility under TCA 50-1-703. Nashville businesses face state penalties for noncompliance.
Davidson County employers with 35 or more employees must enroll in and use the federal E-Verify electronic employment eligibility verification system for all new hires under the Tennessee Lawful Employment Act, TCA 50-1-703. Smaller employers (under 35) must either use E-Verify or retain copies of identity and work authorization documents. The Tennessee Department of Labor and Workforce Development enforces compliance, and the law applies to private and public employers including Metro government contractors. Lower Broadway hotels, Music City Center concessionaires, downtown construction firms, and large restaurants must complete E-Verify queries within three business days of hire. Metro government and Davidson County agencies are also covered.
First violation triggers a written warning. Second violation within three years carries fines of $500 per day per unverified worker. Third violation can suspend the business license. Knowingly hiring unauthorized workers risks license revocation under TCA 50-1-101.
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