Previously, Tennessee law allowed an employer to pay by cash or check, but did not mention direct deposit, debit cards, or any other electronic form of payment. The new law allows direct deposit, a convenient form of payment that has become the standard for many employees. Direct deposit, also referred to as electronic automated funds transfer, is preferred by many employees because the funds are often accessible faster than payments by check.
The Shelby County Commission will have a vote this coming week on a bill to instate a living wage regulation in their area. It will be up to the Budget and Finance Committee in the Shelby County Commission to determine what to do with the living wage ordinance. The version they will be looking at is actually the third version that has passed through the commission. The living wage would only go into effect for employees of the county government, as well as those independent contractors that do business with the county.
Under this third proposal of the living wage, the living wage rate would be set at $10 per hour for any of those above mentioned employers who provide health benefits to their employees. For those who do not provide health benefits to their employees, then the living wage rate would be $12 per hour.
As the third version of the proposal, this living wage bill might leave you asking—well, what happened to versions one and two? Well, the reason that version three was necessary was to limit the bills impact on smaller companies that might do business with the county.
For those of you in the Shelby County area, stay tuned on this one. Of course, the living wage bill will not affect you if you are not an employer of the county, or a contractor that directly works with the county on projects, but in any event, it is a start in your area. Remember, the living wage is different than the minimum wage because the living wage is directly tied to an annual amount of money that an employee would need to make to reach the standard of living that is slightly above or at the poverty level, hence the term “living” wage.