Tennessee Lawful Employment Act (TLE Act)

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Tennessee Lawful Employment Act (TLE Act)

Reference Number: MTAS-2070
Reviewed Date: 09/04/2026

The Tennessee Lawful Employment Act (TLEA), Tennessee Code Annotated §§ 50-1-701 through 50-1-715, was enacted in 2011 to require Tennessee employers to verify the work authorization of persons they hire or engage to provide labor or services. The law originally allowed many employers to comply either by using the federal E-Verify system or by obtaining and retaining specified identity and employment-authorization documents.

For Tennessee cities, the current rule is more specific. Beginning July 1, 2026, a city may not appoint or hire a prospective employee without first verifying that person’s work authorization through the federal E-Verify program. A city may not adopt a local policy or practice that conflicts with this requirement. The former option of relying solely on an approved Tennessee identity/employment-authorization document is no longer sufficient for city employees hired on or after July 1, 2026.

City Requirements
For each prospective employee appointed or hired on or after July 1, 2026, the city must:

  • Enroll in and use the federal E-Verify program.
  • Verify the employee’s work authorization through E-Verify before appointment or employment.
  • Complete Form I-9 in accordance with federal requirements; E-Verify does not replace Form I-9.
  • Maintain documentation of the E-Verify inquiry result showing that the employee is authorized to work for the duration of the employee’s employment.
  • Apply the requirement consistently and avoid using E-Verify to pre-screen applicants or selectively screen employees based on citizenship, national origin, or perceived immigration status.

The Tennessee requirement applies to local governments, including cities and towns, as well as local education agencies and other state governmental employers.

Former TLEA Document Option
For context, Tennessee’s general TLEA provisions historically permitted an employer to meet its verification obligation by requesting and retaining one approved document from a newly hired employee or nonemployee, instead of using E-Verify. The approved-document list includes such items as a valid Tennessee driver license or photo ID, a qualifying out-of-state driver license or photo ID, certain U.S. birth records, an unexpired U.S. passport, certificates of citizenship or naturalization, valid alien-registration documentation, or other DHS-recognized evidence of immigration status and authorization to work. That alternative remains relevant to some private employers under Tennessee law. It should not be presented in a city policy as an alternative to mandatory E-Verify for city employees hired on or after July 1, 2026.

Nonemployees and Contractors
The TLEA uses the terms “employee” and “nonemployee” in its general verification provisions. A nonemployee may include a person who performs labor or services but is not classified as the city’s employee. The city should distinguish carefully between:

  • A city employee, who must be verified through E-Verify before appointment or employment under the 2026 local-government requirement; and
  • An independent contractor or other service provider, whose verification responsibilities may depend on the TLEA, the nature of the engagement, procurement requirements, and the city’s contract terms.

A contractor’s own hiring and Form I-9 obligations ordinarily remain the contractor’s responsibility. Before imposing E-Verify obligations on contractors, the city should ensure the procurement document or contract clearly states the applicable requirement.

Record Retention
For city employees hired on or after July 1, 2026, retain the E-Verify inquiry result demonstrating work authorization for the employee’s entire period of employment. The city must also retain the employee’s Form I-9 for the later of three years after the hire date or one year after employment ends. The city should retain E-Verify case records and Forms I-9 in secure, retrievable files and limit access to staff with a legitimate business need. Because Form I-9 and E-Verify records contain sensitive personal information, they should generally be maintained separately from general personnel files.

Enforcement
The Tennessee Attorney General and Reporter may enforce a local government’s failure to comply with the mandatory E-Verify requirement. The enforcement mechanism may include withholding state funds allocated to the local government through grants, contracts, or statutes, including state-shared tax revenue.

The graduated TLEA civil penalties—$500 for a first violation, $1,000 for a second violation, and $2,500 for a third or subsequent violation, with additional per-worker penalties—are part of the general TLEA enforcement structure and are principally discussed in connection with private-employer violations. A city policy should not rely on those older penalty provisions as the complete statement of a city’s current exposure; the specific 2026 local-government enforcement risk is potential withholding of state funds.


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