$8.25 minimum wage may be imposed in specific cases

Posted By | February 27, 2014 12:00 am

Tennessee legislators are reviewing the possibility of passing a new law that would set the minimum wage at $8.25 for certain employers who do not offer health benefits to employees and employees’ dependents.
Subject to certain exemptions, the bill, if passed, would require each employer who employs 20 or more employees to pay a wage to each employee of not less than $7.25 per hour worked, if the employer offers health benefits, or $8.25 per hour worked, if the employer does not offer health benefits.
“Offering health benefits” means making health insurance available to the employee and the employee’s dependents at a total cost to the employee for premiums of not more than 10 percent of the employee’s gross taxable income from the employer.
Hourly rates required by this bill would be adjusted by increases in the federal minimum wage in excess of $7.25 per hour, or, if greater, by the cumulative increase in the cost of living. No consumer price index adjustment for any one-year period may be greater than 3 percent.
The wage and notice requirements will not apply to employment for the following:
(1) Casual babysitters;
(2) Domestic service employees who reside in the household where they work;
(3) Outside salespersons whose earnings are based on commissions;
(4) Employees engaged in an agricultural pursuit of an employer who did not use more than 500 days of agricultural labor in any calendar quarter of the preceding calendar year;
(5) Taxicab and limousine drivers;
(6) Persons with severe disabilities whose disabilities have diminished their productive capacity in a specific job as recognized by the department of human services, the department of mental health and substance abuse services, or the department of intellectual and developmental disabilities.
This bill was placed on the calendar for the Consumer and Human Resources Subcommittee for Feb. 26, 2014.

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