01TN is one of 5 states with no state minimum wage law
Tennessee is one of only five states (along with Alabama, Mississippi, South Carolina, Louisiana) with no state minimum wage law. Tenn. Code § 50-2-114 establishes a wage framework that references the federal minimum wage by reference. The federal $7.25 has been unchanged since July 24, 2009. Tennessee tracks any future federal minimum wage increases automatically through the reference framework.
Tipped workers earn $2.13/hr cash + up to $5.12 tip credit ($7.25 - $2.13), with total compensation including tips required to reach $7.25. Workers earning more than $30/month in tips qualify as tipped employees (federal threshold). Tennessee follows federal tip credit framework with no state-specific 80/20 rule. Employers must notify workers in writing of tip credit application.
Local preemption: Tennessee has effectively preempted local minimum wage ordinances through Tenn. Code § 7-51-2103 (general restriction on local employment regulations). No Tennessee city has enacted a local minimum wage. Memphis, Nashville, Knoxville, Chattanooga — all run on the federal $7.25.
Federal $684/week ($35,568/year) exempt threshold applies. Tennessee does not set a higher state-specific exempt threshold. The DOL's attempted 2024 increase to $1,128/week was vacated by the Eastern District of Texas in November 2024, leaving the federal $684 in place. TN tracks federal exempt classifications and duties tests under FLSA.
Coverage exemptions: TN follows federal FLSA exemptions (executive, administrative, professional, computer, outside sales, highly compensated employee). Plus narrow state-specific carve-outs. For employers not covered by federal FLSA (rare given FLSA's broad coverage), Tennessee Wage Regulation Act under Tenn. Code §§ 50-2-101 to 50-2-114 provides backstop wage protections, but with no state-specific minimum wage rate.
Read the full Tennessee federal floor + no state minimum wage guide →
02Tennessee has no state overtime statute — pure FLSA reliance
Tennessee has no state overtime statute. Federal FLSA (29 USC § 207) controls: 1.5× regular rate for hours worked over 40 in a workweek for non-exempt workers. Tennessee tracks federal exemptions, federal regular rate calculation, and federal SOL framework. State law adds no overtime requirements beyond federal.
Federal regular rate calculation under 29 CFR Part 778 controls. All compensation components must be included: hourly wages, nondiscretionary bonuses, shift differentials, commissions, certain piecework. Failing to include nondiscretionary bonuses in regular rate is a common employer mistake — particularly impactful where bonuses materially exceed hourly base.
FLSA exemptions apply: executive, administrative, professional (with $684/week salary basis + duties test); computer professionals (with $684/week salary or $27.63/hour hourly basis); outside sales; highly compensated employees ($107,432/year, primarily performing exempt duties). Tennessee follows federal exemption analysis without state-specific modifications.
FLSA enforcement track: workers may pursue claims through US DOL Wage and Hour Division (administrative track) or private civil action in federal court. Federal SOL: 2 years for ordinary violations, 3 years for willful. Recovery: unpaid overtime + equal liquidated damages + attorney fees + costs. Class certification under Rule 23 or collective action under FLSA § 216(b) typical for pattern violations.
Specific FLSA carve-outs relevant to TN sectors: agricultural workers (limited OT coverage); seasonal amusement workers (full OT exemption if establishment operates ≤7 months/year or 6-month receipts test); specific transportation workers (motor carrier exemption under 13(b)(1)); specific commission-paid workers (7(i) exemption for retail and service establishments). Multi-state operators should verify federal exemption applicability per worker rather than relying on industry assumption.
Read the full Tennessee federal flsa overtime (no state ot) guide →
03Tenn. Code § 50-2-103(h) — uncommon 6-hour trigger threshold
Tenn. Code § 50-2-103(h) requires that 'any employee who is scheduled to work six (6) consecutive hours shall be provided a meal or rest period of at least thirty (30) minutes...' The 30 minutes must be unpaid (worker fully relieved of duties) for it to count as a qualifying meal break. Workers performing duties during the 30 minutes must be compensated for that time.
The 6-hour trigger is earlier than most states. California: 5-hour trigger. Colorado: 5-hour trigger. Connecticut: 7.5-hour trigger. Massachusetts: 6-hour trigger. New York: 6-hour trigger (factory) or 8-hour trigger (non-factory). Federal FLSA: no mandate. Tennessee's 6-hour framework is similar to MA and NY's factory framework.
Carve-out: § 50-2-103(h) excludes 'workplace environments that by their nature of business provides for ample opportunity to rest or take an appropriate break.' The carve-out is primarily for restaurant and food service operations, where workers naturally have downtime between meal rushes. The carve-out also extends to certain healthcare settings (with appropriate downtime), 24-hour operations with shift coverage, and some retail environments.
Documentation of carve-out: employers relying on the 'nature of business' exemption should document: (1) the operational pattern that creates 'ample opportunity'; (2) actual break observations supporting the framework; (3) worker awareness of break opportunities. Without documentation, the carve-out may not survive scrutiny in wage litigation.
Lactation accommodation under Tenn. Code § 50-1-305: employers must provide 'a reasonable unpaid break time' for workers expressing breast milk for nursing children. The accommodation is required regardless of employer size. Locations: a private space, not a bathroom, with reasonable proximity to the worker's work area. Anti-retaliation provisions apply. Compensation can typically be coordinated with paid rest breaks if the employer otherwise provides them.
Read the full Tennessee 30-minute meal break for 6+ hour shifts guide →
04Tenn. Code § 50-2-103(g) — next payday OR 21 days, whichever LAST
Tenn. Code § 50-2-103(g) establishes Tennessee's final paycheck rule: 'Any employee who leaves or is discharged from employment shall be paid in full all wages or salary earned by the employee no later than the next regular payday following the date of dismissal or voluntary leaving, or twenty-one (21) days following the date of discharge or voluntary leaving, whichever occurs last.' The rule applies regardless of whether termination was employer- or employee-initiated.
The 'whichever last' framework: Tennessee employers may pay final wages on whichever is LATER between (a) next regular payday and (b) 21 days from separation. This gives employers more time than 'whichever first' frameworks (where the worker gets the earlier date). For example: worker separated on Tuesday, next regular Friday payday is 3 days away; under 'whichever last,' final pay is due 21 days from Tuesday, not the upcoming Friday.
Coverage: applies to all wages and salary earned by the worker. Includes: hourly pay, salary, accrued vacation if employer policy commits to payout, commissions earned under commission agreement, nondiscretionary bonuses earned at separation. Excludes: discretionary bonuses not yet earned; future periods of work; severance unless contractually owed.
Penalty for late payment: Tenn. Code § 50-2-103 violations are Class B misdemeanors. Civil action available for unpaid wages plus reasonable attorney fees under TN Wage Regulation Act. Federal FLSA may also apply for FLSA-covered employers, with FLSA's own penalty framework (liquidated damages equal to unpaid amount + attorney fees).
Operational implications: TN employers have more flexibility on separation timing than most states. Multi-state operators should configure: (1) state-specific final pay calculation triggers (TN: 'whichever last'; most other states: 'whichever first' or 'next payday'); (2) 21-day deadline tracking; (3) wage statement issuance with final paycheck. The framework rewards documented payment processes; ad-hoc separation administration risks late-pay exposure under federal FLSA even when state law would permit longer timing.
Read the full Tennessee final pay 'whichever last' rule guide →
05Reasonable accommodations for pregnancy, childbirth, related conditions
Tennessee Pregnant Workers Fairness Act under Tenn. Code §§ 50-10-101 to 50-10-104 (effective October 1, 2020) requires Tennessee employers with 15 or more employees to provide reasonable accommodations for medical needs arising from pregnancy, childbirth, or related medical conditions. The law was enacted in response to gaps in federal Title VII coverage for pregnancy-related accommodations.
Covered accommodations include: more frequent or longer break periods; provision of seating; limits on lifting; modified work schedules; private and sanitary space (other than a bathroom) for expressing breast milk; a temporary transfer to a less strenuous or hazardous position. The accommodations must be reasonable; employers may decline accommodations that pose undue hardship.
Interactive process: employers and workers must engage in interactive process to identify reasonable accommodations. The process is similar to ADA accommodation framework. Documentation should reflect: worker's request (written or verbal); medical provider documentation if requested; employer's analysis of accommodation options; final determination and rationale.
Anti-retaliation under § 50-10-104: workers cannot be discharged, demoted, denied employment opportunities, or otherwise discriminated against for: (1) requesting accommodations; (2) using accommodations; (3) filing complaints under TPWFA. Civil remedies: reinstatement, back pay, compensatory damages, attorney fees.
Federal Pregnant Workers Fairness Act (PWFA, effective June 27, 2023) provides similar protections nationwide at the 15+ employee threshold. EEOC enforces federal PWFA. Tennessee workers may pursue claims under both state TPWFA and federal PWFA simultaneously. Multi-state operators should configure pregnancy accommodation workflows to satisfy both frameworks; federal PWFA covers all 50 states while state-specific frameworks like TPWFA add state-specific procedural requirements.
Read the full Tennessee tennessee pregnant workers fairness act (oct 2020) guide →
0635+ employee employers must use E-Verify under Tenn. Code § 50-1-703
Tennessee Lawful Employment Act under Tenn. Code §§ 50-1-701 et seq. (effective January 1, 2017 with phased coverage based on employer size) requires Tennessee employers to verify employment eligibility for new hires. Coverage tiered by employer size:
35+ employees: must use E-Verify (federal electronic verification system) for all new hires. Under 35 employees: may either use E-Verify OR retain copies of qualifying identity and employment authorization documents (US passport, Permanent Resident Card, driver's license + SSN card, etc.) per § 50-1-703(c). The under-35 alternative provides flexibility for small employers but requires documented compliance.
Phased implementation: the LEA was originally enacted with later effective dates for smaller employers. As of 2026, all coverage tiers are fully effective. New hires must be verified within 3 business days of hire. Verification record must be maintained for the duration of employment plus retention period.
Federal Form I-9: independent of LEA, all US employers must complete Form I-9 for each new hire under federal Immigration Reform and Control Act (IRCA). Form I-9 must be completed by the worker's first day of work and verified by the employer within 3 business days of hire. LEA's E-Verify requirement supplements Form I-9 — not a replacement.
Penalties for LEA non-compliance: civil penalties from $500 to $1,000 per violation under Tenn. Code § 50-1-714. Violations include: failure to use E-Verify (35+ employee employers); failure to retain qualifying documents (under-35 employers electing document retention); failure to enroll in E-Verify; failure to complete verification within timeline. Repeat violations may result in business license suspension. Multi-state operators should configure: (1) E-Verify enrollment in TN onboarding; (2) verification within 3 business days; (3) retention of E-Verify case results; (4) audit-ready documentation for state inspection.
Read the full Tennessee lawful employment act (e-verify mandate) guide →
07Federal FMLA only; right-to-work state framework
Tennessee has no statewide paid sick leave law. Workers in TN generally rely on: (1) federal FMLA (12 weeks unpaid, job-protected at 50+ employee employers); (2) any voluntary employer-provided PSL or PTO; (3) narrow state-specific unpaid leaves discussed below.
Federal FMLA framework: covers TN employers with 50+ employees within 75 miles. Workers eligible after 12 months of employment and 1,250 hours worked in the preceding 12 months. Up to 12 weeks of unpaid, job-protected leave per 12-month period for: birth/bonding with new child; care for spouse, child, or parent with serious health condition; worker's own serious health condition; qualifying military exigency. Up to 26 weeks for caring for covered service member with serious injury or illness.
Tennessee-specific unpaid leaves: Jury Duty Leave (Tenn. Code § 22-4-106): workers cannot be discharged or required to use PTO for jury service. Voting Leave (Tenn. Code § 2-1-106): up to 3 hours of leave to vote, paid if scheduled work hours overlap with all polling hours. Military Leave (Tenn. Code §§ 8-33-101 et seq. for state/local government workers; federal USERRA for private workers).
Right-to-work state framework: Tennessee Constitution Article XI § 14 and Tenn. Code §§ 50-1-201 et seq. prohibit closed shop, union shop, and agency shop arrangements. Workers cannot be required to join a union or pay union dues as a condition of employment. Multi-state operators expanding to TN from union-active states (NY, NJ, MI, IL) face different organizing dynamics; collective bargaining agreements may not include compulsory membership clauses.
PFML legislation has not advanced in the Tennessee General Assembly. Given current political alignment and right-to-work framework, PFML enactment in TN is unlikely in the 2026-2027 timeframe. Operators should not anticipate state PFML in near-term planning. Voluntary employer-provided PFML through private insurance or self-funded programs remains the only structured paid leave option for TN employers.
08Semi-monthly minimum frequency; TEPA equal pay; multi-factor IC test
Pay frequency under Tenn. Code § 50-2-103: 'all wages or compensation of employees in private employment shall be due and payable not less than once a month.' Practical interpretation: semi-monthly is the most common compliant frequency, but bi-weekly, weekly, and monthly all comply. The frequency must be regular and communicated to workers in writing.
Wage statement disclosure under Tenn. Code § 50-2-103: per-paycheck information required including: gross wages; deductions itemized (taxes, garnishments, voluntary deductions); net wages; pay period covered. Wage statements may be electronic. Records of hours worked and wages paid must be retained for 3 years (federal FLSA standard, also applicable in Tennessee).
Wage deduction rules under Tenn. Code § 50-2-110: employers may make deductions only for: (1) items required by law (taxes, court-ordered garnishments); (2) items authorized in writing by the worker. Deductions cannot reduce pay below minimum wage and cannot be taken from overtime premium under federal FLSA standards (FLSA Fact Sheet #16 controls in Tennessee given absence of state minimum wage law).
Tennessee Equal Pay Act (Tenn. Code § 50-2-202): 'no employer shall pay any employee in his employment at a rate less than the rate at which he pays any employee of the opposite sex for comparable work...' Coverage extends to all Tennessee employers regardless of size. Workers may pursue civil action; recoverable: back pay differential, liquidated damages, attorney fees. SOL: 2 years for ordinary violations, extended to 3 years for willful.
IC classification: multi-factor common law test similar to IRS framework under Rev. Rul. 87-41. Behavioral control, financial control, relationship type. No single factor dispositive. More permissive than ABC test states. Tennessee Joint Enforcement effort (DOLWD + Department of Revenue) targets construction misclassification, healthcare staffing, and gig economy classification matters.
Read the full Tennessee pay frequency + equal pay act + ic test guide →