House Bill 2540 amends various sections of the Tennessee Code Annotated concerning state employment, introducing significant changes to procedures and definitions. The bill replaces the term "executive grade levels" with "executive exempt classifications" and allows for the rejection of applications intended to harass or intimidate the hiring process. It also modifies the appeal process for employees facing dismissal, demotion, or suspension by establishing a structured two-step procedure with specific timelines for filing appeals and issuing decisions. Additionally, the bill outlines conditions for employee leave related to disaster relief efforts and parental leave.

The bill deletes several sections of current law, including those governing the appeal process and sick leave provisions, while revising others to clarify employee and appointing authority rights and responsibilities. New language is added to specify that employees must provide written justification for appeals and allows for the introduction of new evidence during the appeal process. The bill also mandates state offices to maintain bulletin boards for employee association literature and introduces a salary administration plan for specific agency positions. The effective dates for the bill's provisions vary, with some sections taking effect immediately and others set for 2026 and 2027.

Statutes affected:
Introduced: 8-23-201(a)(2)(A)(iii), 8-23-201, 8-23-204, 8-30-102(c), 8-30-102, 8-30-108, 8-30-301(b), 8-30-301, 8-30-302, 8-30-304(a), 8-30-304, 8-30-305, 8-30-306, 8-30-311, 8-30-313(f), 8-30-313, 8-30-318, 8-30-319, 8-30-320, 8-30-407, 8-50-102, 8-50-105, 8-50-106, 8-50-109, 8-50-110, 8-50-117, 8-50-802(a), 8-50-802, 8-50-806, 8-50-807(b), 8-50-807, 8-50-808(a), 8-50-808, 8-50-809(b), 8-50-809, 8-50-810, 8-50-813(a), 8-50-813, 8-50-901, 8-50-903, 8-50-908, 8-50-1001, 41-24-113, 70-1-309
Amended with SA0989 -- 04/16/2026: 8-23-201(a)(2)(A)(iii), 8-23-201, 8-23-204, 8-30-102(c), 8-30-102, 8-30-108, 8-30-301(b), 8-30-301, 8-30-302, 8-30-304(a), 8-30-304, 8-30-305, 8-30-306, 8-30-311, 8-30-313(f), 8-30-313, 8-30-318, 8-30-319, 8-30-320, 8-30-407, 8-50-102, 8-50-105, 8-50-106, 8-50-109, 8-50-110, 8-50-117, 8-50-802(a), 8-50-802, 8-50-806, 8-50-807(b), 8-50-807, 8-50-808(a), 8-50-808, 8-50-809(b), 8-50-809, 8-50-810, 8-50-813(a), 8-50-813, 8-50-901, 8-50-903, 8-50-908, 8-50-1001, 41-24-113, 70-1-309, 8-50-807(a)(1)