Tennessee tracks federal for FLSA exempt classification.
In Tennessee, the determination of whether an employee can be classified as exempt from federal overtime and minimum wage requirements hinges entirely on federal FLSA standards. This means employees must meet both the federal salary threshold of $684 per week and pass the applicable duties test for administrative, executive, or professional roles. Tennessee does not impose a separate state-specific salary threshold or duties test, simplifying compliance for employers operating within the state.
FLSA $684/wk Exempt Classification
Validates exempt against $684/week federal salary basis + duties test. TN tracks federal threshold.
What those rules do as a Tennessee shift is created.
Teambridge integrates Tennessee's adherence to federal FLSA exempt classification rules directly into your scheduling and payroll processes. This ensures that employees designated as exempt meet all necessary criteria, preventing misclassification risks.
Verify Salary Threshold
Before an employee can be classified as exempt in Tennessee, Teambridge automatically checks if their annualized salary meets the current federal FLSA threshold of $684 per week ($35,568 annually). If not, the system flags the potential misclassification.
Prompt for Duties Test
For positions designated as exempt, Teambridge prompts administrators to confirm the employee's primary duties satisfy one of the federal FLSA exemption categories (executive, administrative, professional, computer, or outside sales). This ensures the "duties test" component is addressed.
Prevent Overtime Errors
For non-exempt employees, Teambridge ensures proper overtime calculation based on federal FLSA standards for hours worked over 40 in a workweek, as Tennessee does not have its own state overtime law. This prevents miscalculation and ensures compliance.
Deploy Tennessee compliance for your business.
Enter your email to see how Teambridge can automate compliance, payroll, and timekeeping for your Tennessee operations.
Tennessee aligns with federal FLSA for exempt employee classification.
Tennessee's wage and hour framework for exempt employees directly mirrors the federal Fair Labor Standards Act (FLSA). There are no state-specific salary thresholds or duties tests that deviate from federal requirements. Employers must ensure employees meet both the federal salary basis test and the federal duties test to qualify for exemption from minimum wage and overtime.
29 U.S.C. § 201 et seq. (Fair Labor Standards Act)
"Any employee employed in a bona fide executive, administrative, or professional capacity... as such terms are defined and delimited from time to time by regulations of the Secretary of Labor..."
Federal Salary Basis Test
To be considered exempt, an employee must generally be paid on a salary basis at a rate not less than the federal threshold. As of the current federal regulations, this threshold is $684 per week ($35,568 annually). The salary must be a predetermined amount that is not subject to reduction because of variations in the quality or quantity of the work performed.
Federal Duties Test
In addition to meeting the salary basis test, an employee's primary duties must fall within one of the FLSA's recognized exemption categories. These include Executive, Administrative, Professional, Computer Employee, and Outside Sales exemptions. Each category has specific criteria regarding the nature of the work performed and the level of discretion and independent judgment exercised by the employee. For example, an executive employee's primary duty must be managing the enterprise or a recognized department, customarily and regularly directing the work of two or more employees, and having the authority to hire or fire, or whose suggestions are given particular weight.
Teambridge ensures your Tennessee exempt classifications are always compliant.
Teambridge takes the complexity out of managing exempt employee classifications in Tennessee by automating the verification process against federal FLSA standards. Our platform continuously monitors federal regulatory updates, ensuring your classifications remain compliant without manual oversight.
Automatic monitoring of federal thresholds.
Teambridge automatically cross-references employee salaries against the current federal FLSA threshold of $684 per week. If a salary falls below this, the system flags it as a potential misclassification, prompting a review before issues arise.
Structured workflows for duties verification.
Our platform provides guided workflows and prompts for HR teams to document and verify that an employee's primary duties align with federal FLSA exemption categories, ensuring both salary and duties tests are met for proper classification.
Maintain robust compliance records.
Teambridge maintains a comprehensive audit trail of all exemption classifications, including salary data and duties test confirmations. This documentation is readily available for audits, demonstrating due diligence and compliance.
Stay current with FLSA changes.
As federal FLSA regulations for exempt employees are updated, Teambridge automatically incorporates these changes into its compliance engine, ensuring your Tennessee operations are always aligned with the latest legal requirements.
People also ask.
Does Tennessee have its own state law for exempt employee classification?
No, Tennessee does not have a separate state law for exempt employee classification. It fully adopts and follows the federal Fair Labor Standards Act (FLSA) regulations regarding salary thresholds and duties tests for executive, administrative, and professional exemptions.
What is the minimum salary an employee must earn to be considered exempt in Tennessee?
In Tennessee, an employee must meet the federal FLSA minimum salary threshold to be considered exempt. As of the current federal regulations, this is $684 per week, or $35,568 annually.
What is the "duties test" for exempt employees in Tennessee?
The "duties test" in Tennessee refers to the federal FLSA duties test. This requires that an employee's primary job responsibilities fit within specific criteria for executive, administrative, professional, computer employee, or outside sales exemptions. For example, an administrative employee's primary duty must involve office or non-manual work directly related to the management or general business operations of the employer or its customers, and include the exercise of discretion and independent judgment.
Can an employer pay an exempt employee less than $684 per week in Tennessee?
No, if an employer pays an employee less than the federal FLSA threshold of $684 per week, that employee generally cannot be classified as exempt and must be treated as non-exempt, meaning they are entitled to minimum wage and overtime pay for hours worked over 40 in a workweek.
What happens if an exempt employee is misclassified in Tennessee?
Misclassifying an employee as exempt when they do not meet the federal FLSA salary and duties tests can lead to significant penalties. Employers may be liable for unpaid overtime wages, liquidated damages, attorneys' fees, and civil penalties, as Tennessee defers to federal enforcement for these violations.
Does Tennessee have a highly compensated employee exemption?
Tennessee follows the federal FLSA's highly compensated employee (HCE) exemption. For an HCE to be exempt, they must earn a total annual compensation of $107,432 or more (as per current federal regulations), perform office or non-manual work, and customarily and regularly perform at least one of the exempt duties of an executive, administrative, or professional employee.