State Employees - As introduced, makes various changes regarding employment with this state and state employment benefits. - Amends TCA Title 4; Title 8; Section 41-24-113 and Section 70-1-309.

HB 2540 updates Tennessee state employment rules for government workers. It directly affects all state employees by adding a new provision prohibiting harassment during hiring (Section 7) and overhauling the appeal process for disputes like discipline or termination (Section 12). Key changes include requiring written appeals within 14 days, establishing a two-step review process with specific timelines, and clarifying that executive service employees cannot file certain appeals. The bill removes outdated sections about employment classifications and procedures while introducing concrete new rules for fair hiring and grievance handling.