Compliance Stuff

Tennessee has joined an increasing number of states specifically regulating use of AI in the mental healthcare space. In particular, Tennessee recently enacted Senate Bill 1580 (the “Bill”), which provides that a person who develops or deploys AI in the mental healthcare space may not advertise or represent to the public that the AI is or is able to act as a qualified mental health professional .[1] Failure to comply with the Bill carries serious risks, with the Bill specifying that violations constitute deceptive trade practices under the Tennessee Consumer Protection Act and authorizing civil penalties up to $5,000 per violation.[2] The Bill is significantly abbreviated when compared to legislation in other states, such as Illinois,[3] Nevada,[4] and Utah.[5] For example, Nevada prohibits the advertisement of AI as being capable of providing professional mental or behavioral health care, and a chatbot or other avatar from providing such care.[6] Similarly, Utah requires that mental ...

On April 1, 2026, Governor Bill Lee signed  Senate Bill 1580  into law, making Tennessee among the first states to specifically regulate how AI can be marketed and used in the mental health space. The new law takes effect July 1, 2026. What Does the New Law Do? The new law is short and straightforward, providing that a person who develops or deploys an artificial intelligence system cannot advertise or represent to the public that such a system is, or is able to act as, a qualified mental health professional. Artificial intelligence  is broadly defined to mean “models and systems capable of performing functions generally associated with human intelligence, including reasoning and learning.”  Qualified mental health professionals are  defined in existing Tennessee mental health law to include certain licensed psychiatrists, psychologists, psychological examiners, social workers, and marital and family therapists. The new law establishes a private right of action...

The U.S. government shutdown is now in its fourth week, and the funding standoff is now impacting federal courts.  The Administrative Office of the U.S. Courts has confirmed that, as of October 20, the courts  no longer have access to their usual level of funding . Until government funding is restored, courts will operate in a limited capacity that are only necessary to fulfill essential constitutional duties. Federal judges will continue to serve under Article III of the Constitution. However, court staff may only carry out “excepted” duties permitted under the Anti-Deficiency Act. These include: Functions required by the Constitution; Activities necessary to protect human life or property; and Tasks authorized by federal law. Staff performing these duties will work without pay during the shutdown. Others will be furloughed. Each appellate, district, and bankruptcy court will decide how to manage cases, probation, and pretrial supervision during this period.   For exampl...

Tennessee just said goodbye to its longstanding civil rights enforcement agency and created a new enforcement division to handle employment discrimination complaints. What do employers in the state need to know about this transfer of power? What happened? In May, Gov. Bill Lee signed a bill ( HB 910/SB 861 ) into law requiring a transfer of power over civil rights enforcement duties held by the Tennessee Human Rights Commission (THRC), including its responsibilities for handling employment discrimination complaints. As a result of the new law, the THRC dissolved as a state agency on June 30, and the former state agency’s enforcement duties were transferred, effective as follows: State-level civil rights enforcement duties were transferred to a newly created  Division of Civil Rights Enforcement  (CRED) within the Tennessee Office of the Attorney General and Reporter (AG) . CRED is now the primary enforcement arm of the Tennessee Human Rights Act (THRA) and the Tennessee Disa...

  States and cities are as busy as ever passing new workplace regulations throughout the calendar year. Here is our mid-year report summarizing the notable labor and employment laws that take effect from roughly July through October.  Tennessee Bill / Ordinance / Regulation Main Topic Summary Effective Date Tennessee HB 1181 (SB 73) Privacy and Data Security Creates the Tennessee Information Protection Act requiring businesses to protect consumer personal data. 7/1/2025 Tennessee SB 995 (HB 1034) Healthcare Noncompete Agreements Prohibits the enforcement of restrictive covenants against healthcare employees and contractors. 7/1/2025 This article provides a general snapshot of generally applicable labor and employment laws taking effect soon. Please note that while some of the laws listed below are industry-specific, this article is not meant to be all-inclusive. In addition, many state legislatures are still active, so new laws are taking effect on a near-daily basis. Littler ...

What is E-Verify? E-Verify is a federal employment verification internet-based system that employers may use to electronically confirm the employment eligibility of new hires. The E-Verify system compares an employee’s information on their I-9 form with the records at the Department of Homeland Security and the Social Security Administration. All employees must complete a form I-9 by their first day of employment to verify their eligibility to work in the United States. But not all employers are required to use the E-Verify system.   Who Must Use E-Verify? Federal contractors with qualifying contracts must use E-Verify to confirm the employment eligibility status of employees. Nine states currently require private employers to use E-Verify: Alabama, Arizona, Florida, Georgia, Mississippi, North Carolina, South Carolina, Tennessee, and Utah. The requirements for private employers vary from state to state. Some states that require the use of E-Verify apply the law to all private empl...

States are stepping in to regulate AI amid an absence of federal legislation to address fast-changing developments with the technology. This spring, Colorado became the first state to pass a comprehensive piece of AI legislation that cuts across industries and various aspects of AI usage . Colorado’s law zeros in on high-risk AI systems — or those that make “consequential decisions” that could affect consumers’ ability to apply for a job, loan, or many other services. Although other states might follow Colorado’s lead and adopt broad legislation, most have taken a more targeted approach to regulating AI. Their efforts have focused on regulating specific applications of AI and industries. More than 40 states have introduced AI-related legislation this year, according to the National Conference of State Legislatures. Large states, including California, can set standards that companies nationwide can follow to avoid the complexity of complying with multiple regulations. These standards al...

 State Attorney General follows through on threat.  Last summer, shortly after the U.S. Supreme Court’s decision in Students for Fair Admissions v. President & Fellows of Harvard and Students for Fair Admissions v. University of North Carolina, thirteen “red state” Attorneys General warned the nation’s Fortune 100 companies that they should stop “reverse” discriminating against individuals on the basis of race or face the consequences. In their letter, the state AGs stated, “Sadly, racial discrimination in employment and contracting is all too common among Fortune 100 companies and other large businesses. In an inversion of the odious discriminatory practices of the distant past, t oday’s major companies adopt explicitly race-based initiatives which are similarly illegal . These discriminatory practices include, among other things, explicit racial quotas and preferences in hiring, recruiting, retention, promotion, and advancement. . . .  The warning letter c onclud...