Governors in Tennessee will soon have the power to withhold economic incentives to companies that hire too many temporary workers.
The state legislature on Thursday approved a measure, Senate Bill 86, that would give the Department of Economic and Community Development more flexibility in awarding job tax credits.
Officials in Gov. Bill Haslam’s administration deny the legislation responds to any particular situation. But the measure does follow complaints about the long-term reliance on contract labor by the automaker Nissan and other companies.
Nissan has defended the practice. It says the contract workers it employs earn a good wage, receive benefits and often make their way into permanent positions.