State Legislation Filed to Eliminate Essential Employees Distinction

House Bill 37 would eliminate Tennessee’s ability to adhere to a national standard

Pre-filing of legislation is well underway in the Tennessee legislature and the 112th General Assembly will soon be considering the policy proposals of Tennessee’s House and Senator members. Earlier this week, legislation was filed prohibiting state or local government entities from classifying businesses as “essential” or “non-essential” for the purpose of mandated closures or restricting operations. Language of the proposed bill states, “a state or local governmental entity, the governor, or the executive head of a local government shall not, by executive order, ordinance, or resolution, create categories or classes of essential and nonessential businesses, trades, professions, or industries for the purpose of (mandated closures or restricting operations).” House Bill 37 has yet to receive a Senate sponsor, however, Representative Brandon Ogles (R-Franklin) is the House sponsor. Overall the distinction of essential and non-essential business operations has been helpful during recent closures to authorize business operations which Governor Lee established issued through EO 22 consistent with DHS/ CISA guidance.

On March 30, Governor Lee issued Executive Order 22 which required some businesses to close to the public. He encouraged delivery, curbside, distanced service, etc. The executive order referred to and subscribed to the DHS’s CISA guidance which provides a list of critical infrastructure and essential operations. The Chamber was in regular communication with Governor Lee’s office, strongly urging the administration to adopt a uniform standard only if limited closures were absolutely necessary. House Bill 37 would eliminate Tennessee’s ability to adhere to a national standard under this scenario.

This is a first-of-its-kind piece of legislation in Tennessee, however, policy proposals around essential businesses are not unexpected. Earlier this year, the subject was discussed deeply at Chamber listening sessions which were held virtually across all three grand divisions of Tennessee. The issue was also presented in the Chamber’s recent policy survey. There has been significant concern expressed that an inconsistent standard among states would create a significant burden for businesses operating in multiple states. Some other states across the country are considering similar legislation through a variety of approaches.

By the constitution, the Tennessee General Assembly will reconvene on Tuesday, January 12, 2021. It is expected that committees may begin considering legislation as soon as late January and until then, Tennessee chamber staff will be in contact with sponsors about the proposal. Please contact the Chamber’s Government Affairs team with questions regarding HB37 or other legislation.

credit: Newsletter released by Tennessee Chamber of Commerce & Industry/ Tennessee Manufacturers Association