We present a recalibration of the luminosity-metallicity relation for gas-rich, star-forming dwarfs to magnitudes as faint as MR -13. We use the Dopita et al. metallicity calibrations to calibrate the relation for all the data in this analysis. In metallicity-luminosity space, we find two subpopulations within a sample of high-confidence Sloan Digital Sky Survey (SDSS) DR8 star-forming galaxies: 52% are metal-rich giants and 48% are metal-medium galaxies. Metal-rich dwarfs classified as tidal dwarf galaxy (TDG) candidates in the literature are typically of metallicity 12 + log(O/H) = 8.70 ± 0.05, while SDSS dwarfs fainter than MR = -16 have a mean metallicity of 12 + log(O/H) = 8.28 ± 0.10, regardless of their luminosity, indicating that there is an approximate floor to the metallicity of low-luminosity galaxies. Our hydrodynamical simulations predict that TDGs should have metallicities elevated above the normal luminosity-metallicity relation. Metallicity can therefore be a useful diagnostic for identifying TDG candidate populations in the absence of tidal tails. At magnitudes brighter than MR -16, our sample of 53 star-forming galaxies in 9 H I gas-rich groups is consistent with the normal relation defined by the SDSS sample. At fainter magnitudes, there is an increase in dispersion of the metallicity of our sample, suggestive of a wide range of H I content and environment. In our sample, we identify three (16% of dwarfs) strong TDG candidates (12 + log(O/H) > 8.6) and four (21%) very metal-poor dwarfs (12 + log(O/H) <8.0), which are likely gas-rich dwarfs with recently ignited star formation. © 2014. The American Astronomical Society. All rights reserved..