Tennessee — Wage & Hour

Tennessee enacted a minimum wage statute in 2022. Tennessee Code Annotated § 50-2-114, effective July 1, 2022, requires employers to pay employees no less than the federal minimum wage under 29 U.S.C. § 206. The current federal minimum wage is $7.25 per hour, unchanged since July 24, 2009.

Coverage and key distinctions from federal law

Section 50-2-114 applies to employers not engaged in interstate commerce who employ individuals who are U.S. citizens, naturalized citizens, or persons legally present in the United States. This creates a state-law minimum wage floor for employers who might not otherwise be covered by the federal Fair Labor Standards Act (FLSA) due to lack of interstate-commerce nexus or failure to meet the FLSA's enterprise-coverage threshold ($500,000 in annual gross volume of sales).

The statute's definition of "employer" in subsection (b)(2) expressly limits coverage to employers "not involved in interstate commerce." Most Tennessee employers ARE engaged in interstate commerce and therefore covered by both the state statute and the FLSA. When both apply, the rate is identical ($7.25/hour), because Tennessee's statute incorporates the federal rate by reference rather than setting an independent higher rate.

Prohibition on subminimum wages under 29 U.S.C. § 214(c)

Tennessee's statute is more protective than federal law in one important respect: it prohibits payment of subminimum wages to workers with disabilities. Federal law authorizes employers to obtain certificates under 29 U.S.C. § 214(c) allowing them to pay workers with disabilities a wage below $7.25/hour, based on the worker's individual productivity compared to a non-disabled worker performing the same task. Tennessee Code Annotated § 50-2-114(a) states that employers must pay "no less than the federal minimum wage under 29 U.S.C. § 206, regardless of the subminimum wage authorized pursuant to 29 U.S.C. § 214(c)." (Emphasis added.)

Employers in Tennessee holding federal § 214(c) certificates must therefore pay covered employees at least $7.25/hour under state law, even though federal law would permit a lower commensurate wage.

State enforcement mechanism

By enacting § 50-2-114, Tennessee created a state-law cause of action for minimum wage violations by employers not covered by the FLSA. Employees of non-interstate-commerce employers now have a state statutory remedy even when the FLSA does not apply. The statute does not specify a private right of action or administrative enforcement procedure; practitioners should consult Tennessee Department of Labor & Workforce Development guidance on enforcement mechanisms.

No local minimum wage authority

Tennessee Code Annotated § 50-2-112 (enacted 2013, amended 2023) prohibits local governments from requiring private employers to pay wages in excess of the minimum required under applicable federal or state law. Cities and counties may not enact local minimum wage ordinances.

Link to federal guide

Practitioners should consult the United States — Wage & Hour guide for FLSA enterprise and individual coverage rules, exemptions, tip credits, and federal enforcement procedures.

Source: 2022 Tenn. Pub. Acts Ch. 870 (SB 550), enacting Tenn. Code Ann. § 50-2-114, eff. 7/1/2022; 29 U.S.C. § 206; Tenn. Code Ann. § 50-2-112

Tennessee requires employers to pay all earned wages to separated employees no later than the next regular payday following separation or 21 days after separation, whichever is later. This timing rule applies equally to both voluntary resignation and involuntary termination.

Statutory rule — Tenn. Code Ann. § 50-2-103(g) (as amended by 2024 legislation, effective July 1, 2026)

Tennessee Code Annotated § 50-2-103(g) states that any employee who leaves or is discharged from employment must be paid in full all wages or salary earned by the employee no later than the next regular pay day following the date of dismissal or voluntary leaving, or twenty-one (21) days following the date of discharge or voluntary leaving, whichever occurs last.

Amendment for piece-work and commission employees — Effective July 1, 2026

A 2024 amendment to Section 50-2-103(g) (see 2024 Tenn. Pub. Acts Ch. 772 (HB 1958), effective July 1, 2026) adds a carve-out: for employees who are compensated on a piece-work or commission basis, the final payment need not be made until the last day of the month succeeding the month in which the separation occurred. This means, for example, if a commissioned salesperson’s employment ends on July 10, 2026, the employer has until August 31, 2026, to pay all earned commissions unless the next regular payday or 21-day standard would fall later.

Calculation of the deadline

• For most employees: If the employer’s next regular payday falls 30 days after separation, the employer has 30 days; if the regular payday falls 10 days after separation, the employer still has 21 days. The statute sets a floor of 21 days, but requires payment by the next regular payday if that is later.
• For piece-work or commission employees (for separations on or after July 1, 2026): Payment deadline is the last day of the month following the month of separation, unless the next regular payday or 21-day rule would require a later payment—then the later date applies.

No distinction by separation type

Section 50-2-103(g) does not distinguish between voluntary quit and involuntary discharge; the same timing rule applies regardless of why the employment ended.

Unused fringe benefits

Tennessee law does not require an employee’s final wages to include payment for unused vacation, sick leave, or other fringe benefits unless the employer’s written policy or a collective bargaining agreement specifically requires such payment. Employers should review their written guidelines to determine whether accrued-but-unused benefits must be paid out at separation.

Recent legislative change

This section reflects the July 1, 2026, amendment establishing a separate deadline for piece-work and commission-earning employees. Employers should review their policies to ensure compliance with the updated statute for separations occurring on or after that date.

Source: Tenn. Code Ann. § 50-2-103(g), as amended by 2024 Tenn. Pub. Acts Ch. 772 (HB 1958) (last accessed 2024-06-12); Tenn. Dept. of Labor & Workforce Development — Wages & Breaks FAQ (mirroring the statute's requirements)

Tennessee does not have a state overtime statute. Employers in Tennessee must follow the federal Fair Labor Standards Act (FLSA) for all overtime requirements. The Tennessee Department of Labor and Workforce Development explicitly directs overtime questions to the U.S. Department of Labor, confirming that overtime regulation falls outside state agency jurisdiction.

Federal FLSA overtime rule

Under 29 U.S.C. § 207, covered nonexempt employees must receive overtime pay at 1.5 times their regular rate of pay for all hours worked over 40 in a workweek. A workweek is any fixed and regularly recurring period of seven consecutive 24-hour periods (168 hours); it need not coincide with the calendar week and may begin on any day and at any hour.

Tennessee law imposes no additional requirements beyond the FLSA. Specifically:

• No daily overtime threshold. Tennessee does not require overtime pay for hours worked over a certain number in a single day (unlike California's 8-hour daily threshold or 12-hour double-time rule). Overtime is calculated solely on a weekly basis—working 10 or 12 hours in one day does not trigger overtime unless total hours for the workweek exceed 40.

• No double-time requirement. Tennessee law does not mandate double-time pay for any hours, including extended shifts, seventh consecutive workday, or holidays.

• No state-level restrictions on mandatory overtime. Employers may require employees to work overtime (subject to federal wage-and-hour rules and any applicable collective bargaining agreements), and the FLSA permits disciplinary action for refusal to work assigned overtime. The Tennessee Department of Labor confirms that employers may schedule employees for as many hours as the employer determines necessary, provided overtime pay is provided when applicable.

Weekly calculation only

Because Tennessee follows the FLSA without modification, overtime is determined exclusively by total hours worked in the applicable workweek. Paid time off—such as vacation, sick leave, or holiday pay—does not count as "hours worked" for purposes of the 40-hour threshold. Only actual time spent working (or time the FLSA requires to be counted as hours worked, such as certain on-call or waiting time) is included in the overtime calculation.

Link to federal guide

Practitioners should consult the United States — Wage & Hour guide for detail on FLSA coverage (enterprise and individual), the white-collar exemptions under 29 C.F.R. Part 541 (executive, administrative, professional, computer, outside sales), the salary-basis test, the current salary threshold ($684/week as of May 2026 following the November 2024 Texas v. DOL vacatur), highly compensated employee rules, fluctuating workweek methods, regular-rate-of-pay components, and statutory exclusions under 29 U.S.C. § 207(e).

Source: Tenn. Dept. of Labor & Workforce Development — Referrals; Tenn. Dept. of Labor & Workforce Development — Hours/Scheduling FAQ; 29 U.S.C. § 207

Tennessee requires employers to provide employees with a 30-minute unpaid meal or rest period when the employee is scheduled to work six (6) consecutive hours or more. Tennessee Code Annotated § 50-2-103(h) codifies this requirement, making it one of the few areas where Tennessee state law imposes wage-and-hour obligations beyond the federal Fair Labor Standards Act floor.

Timing rule — cannot be scheduled during or before the first hour

Section 50-2-103(h)(1) prohibits scheduling the 30-minute meal or rest period during or before the first hour of scheduled work activity. An employee scheduled for a six-hour shift beginning at 8:00 a.m. cannot be required to take the meal break before 9:00 a.m. The statute does not specify a latest permissible time for the break, but the employer must schedule it after the first hour has been completed.

Workplace environment exception

The statute carves out an exception for "workplace environments that by their nature provide for ample opportunity to rest or take an appropriate break." Tenn. Code Ann. § 50-2-103(h)(1). This exception is available when the nature of the business itself—not a particular employer's policy—provides built-in opportunities for employees to rest. The Tennessee Department of Labor & Workforce Development has historically applied this exception to certain food-and-beverage establishments during slow periods, on the theory that servers and kitchen staff can take informal breaks when customer traffic is light. Employers relying on this exception bear the burden of demonstrating that the work environment qualifies; the exception is not automatic and does not apply simply because an employer chooses not to schedule formal breaks.

Voluntary waiver for tipped food-and-beverage employees

Subsection 50-2-103(h)(2), enacted in 2018, permits employees principally employed in the service of food or beverages to customers who receive and report tips to voluntarily waive their right to the 30-minute meal break, at the employer's discretion. The waiver must satisfy statutory procedural safeguards:

• The employee must submit a written waiver request on a form established by the employer.
• The request must be submitted knowingly and voluntarily, and both employer and employee must consent to the waiver.
• The employer's waiver form must include: (i) a statement acknowledging the employee's statutory right to a 30-minute unpaid meal break during a six-hour work period and that the employee is knowingly and voluntarily waiving that right; (ii) the length of time the waiver will remain in effect; and (iii) procedures for rescission.
• Either party may rescind the waiver after providing at least seven (7) calendar days' notice to the other party. Tenn. Code Ann. § 50-2-103(h)(2)(D).
• No employer shall coerce an employee into waiving a meal break. Tenn. Code Ann. § 50-2-103(h)(2)(E).

This waiver provision applies only to tipped food-and-beverage service employees. Employees in other industries—and non-tipped employees in restaurants (e.g., dishwashers, bussers who do not receive tips, cooks)—retain the unwaivable right to the 30-minute break.

Paid vs. unpaid status

Tennessee Code Annotated § 50-2-103(h) uses the phrase "meal or rest period" but does not expressly require that the break be compensated. The break is unpaid if the employee is completely relieved from duty. If the employer requires the employee to remain on duty, answer phones, monitor a register, or perform any work during the break, the time becomes compensable under both state and federal law and must be counted as hours worked for minimum-wage and overtime purposes. This principle follows federal Department of Labor regulations at 29 C.F.R. § 785.19, which define bona fide meal periods as duty-free.

Rest periods shorter than 30 minutes

Tennessee law does not require employers to provide short rest breaks (e.g., 10- or 15-minute coffee breaks). Section 50-2-103(h) imposes only the single 30-minute meal-period requirement for shifts of six hours or longer. The Tennessee Department of Labor & Workforce Development confirms that there are no state requirements for additional breaks beyond the 30-minute meal period.

If an employer voluntarily provides short breaks of 20 minutes or less, federal regulations at 29 C.F.R. § 785.18 treat those breaks as compensable hours worked that must be paid and counted toward the 40-hour overtime threshold. This federal rule applies regardless of whether Tennessee state law requires the breaks.

Minors (employees under age 18)

Tennessee Code Annotated § 50-5-115 imposes a parallel meal-break rule for minors: a minor must have a 30-minute unpaid break or meal period if scheduled to work six (6) hours consecutively, and the break shall not be scheduled during or before the first hour of scheduled work activity. The language mirrors the adult rule in § 50-2-103(h) but is codified separately in Tennessee's child-labor provisions.

Enforcement and penalties

Failure to provide the required 30-minute meal or rest period constitutes a violation of state law. The Tennessee Department of Labor & Workforce Development states that violations are punishable as a Class B misdemeanor, carrying a fine of not less than $100 nor more than $500. Employers who willfully violate the meal-break requirement may also face civil penalties ranging from $500 to $1,000. Each violation constitutes a separate offense.

Employees who are denied the required break and required to work through it may also have an unpaid-wages claim for the compensable time worked during what should have been an unpaid, duty-free break.

No federal meal-break requirement — Tennessee's rule stands alone

The federal FLSA does not require employers to provide meal or rest breaks of any duration. Tennessee's 30-minute meal-break requirement is therefore an independent state-law obligation that applies to Tennessee employers regardless of FLSA coverage. Multi-state employers should note that Tennessee's rule differs both from states with no meal-break requirement (Alabama, Mississippi, Louisiana) and from states with more generous requirements (California's separate meal-period and paid rest-break mandates, or New York's industry-specific meal-period rules).

Link to federal guide

For federal break rules when an employer voluntarily provides breaks, and for the distinction between compensable short breaks and bona fide meal periods under 29 C.F.R. §§ 785.18–.19, see the United States — Wage & Hour guide.

Source: Tenn. Code Ann. § 50-2-103(h) (2018 amendment adding waiver provision for tipped food-and-beverage employees); Tenn. Dept. of Labor & Workforce Development — Wages & Breaks FAQ

2026 statutory update — monthly and semi-monthly/special pay cycles now governed by amended Tenn. Code Ann. § 50-2-103, effective July 1, 2026.

Tennessee requires private employers with five (5) or more employees to establish and maintain regular paydays, paying employees at least once per month. Tennessee Code Annotated § 50-2-103(a), as amended by 2024 Public Chapter 772 (HB 1958, eff. July 1, 2026), maintains this minimum frequency and sets deadlines that vary by pay cycle frequency. The 2026 amendment clarifies rules for piece-work and commission-based compensation (see below).

Covered employers The payday requirements in Section 50-2-103 apply to all private employment with five or more employees, except government entities. Employers below this threshold are not subject to the statutory payday rules.

Monthly payment — fifth-day deadline Employers that pay wages once monthly must pay all compensation earned and unpaid prior to the first day of any month no later than the fifth day of the succeeding month. Example: wages earned in January must be paid by February 5.

Semi-monthly or more frequent payment — two statutory deadlines Employers that pay semi-monthly or more frequently (including bi-weekly and weekly) must meet two separate statutory pay deadlines:

• (A) All wages earned and unpaid prior to the first day of any month must be paid by the twentieth (20th) day of the month following the one in which the wages were earned. Example: wages earned in January must be paid no later than February 20.
• (B) Wages earned and unpaid prior to the sixteenth day of any month must be paid by the fifth (5th) day of the succeeding month. Example: wages earned January 1–15 must be paid by February 5.

These provisions allow for typical semi-monthly pay cycles (e.g., pay on the 5th and 20th of each month). Employers paying more frequently must ensure pay periods match the statutory cutoffs so every portion of a month's earnings is paid by the latest allowed date.

2026 new exception: piece-work and commission compensation For employees paid on a piece-work or commission basis, as of July 1, 2026, regular payment for earned wages (including regular payday wages, not just final pay) must occur no later than the last day of the month following the month in which the wages were earned, unless a later date would be required by the standard semi-monthly or monthly rules. Employers may, but are not required to, pay more frequently.

Example: commissions earned in January 2027 must be paid by February 28, 2027, unless the regular semi-monthly deadlines would fall later.

Notice of paydays Employers must post notice of regular paydays in at least two conspicuous places where seen by employees as they go to and from work (Section 50-2-103(d)). The notice must be printed or written in plain script or type. There is no mandatory state template for this posting.

Methods of payment permitted Payment may be by cash, negotiable check, direct deposit (lawful money), or credit to a prepaid debit card—provided the funds can be accessed without discount, exchange, or collection cost.

Distinction from final-paycheck timing Rules for regular payday do not override separate final-paycheck timing requirements for employees upon separation. For those rules, see the final-paycheck-timing section.

Citations Source: Tenn. Code Ann. § 50-2-103, as amended by 2024 Tenn. Pub. Acts Ch. 772 (HB 1958), eff. July 1, 2026 (last accessed 2024-07-11); Tennessee Department of Labor & Workforce Development — Wages & Breaks FAQ

Note: The July 1, 2026, amendment materially updates the prior legal deadlines for piece-work and commission compensation. Review payroll schedules to ensure compliance for all pay issued after July 1, 2026.

Source: Tenn. Code Ann. § 50-2-103, as amended by 2024 Tenn. Pub. Acts Ch. 772 (HB 1958), eff. July 1, 2026 (statute); Tennessee Department of Labor & Workforce Development — Wages & Breaks FAQ (agency guidance)

Tennessee law restricts an employer's ability to deduct or offset amounts from an employee's wages. The Tennessee Department of Labor & Workforce Development states the general rule: "Generally, your employer cannot make any deductions from your paycheck without your consent to the deductions unless you have signed a written agreement."

This general consent requirement applies across the employment relationship. Employers may not unilaterally deduct amounts for alleged shortages, unreturned property, or other claimed debts unless the employee has provided written authorization.

Employer offsets for wage advances, loans, and personal credit charges — Tenn. Code Ann. § 50-2-110

Tennessee Code Annotated § 50-2-110, enacted in 2011, establishes a specific statutory procedure that permits employers to offset an employee's wages for amounts owed when the debt arises from a wage advance, a loan from the employer, or personal charges the employee made on an employer-issued business or corporate credit card. The Tennessee Department of Labor FAQ references this statute and confirms that employers may offset wages under the following conditions:

1. Written agreement signed in advance. The employee must sign a written agreement prior to any actions occurring (before the wage advance, loan, or personal credit-card charge takes place) allowing the employer to offset the employee's wages for any amount the employee owes the employer. The employer must possess a copy of this signed agreement at the time of the offset.

1. Fourteen-day advance written notice. The employer must notify the employee in writing fourteen (14) days prior to the payment of wages that:

• There is an amount the employee owes the employer;
• The employee's wages may be offset if the amount owed is not paid before the scheduled payment date; and
• The employee may submit an affidavit disputing the offset.

The fourteen-day notice period is mandatory. Oral warnings or paystub notations do not satisfy this requirement.

1. Employee's right to dispute the offset. If the employee sends a sworn affidavit to the employer and a copy to the Tennessee Department of Labor & Workforce Development disputing the amount owed or the validity of the debt prior to the date the offset is to occur, the employer is not entitled to offset the employee's wages. The affidavit blocks the administrative offset procedure; the employer may still pursue the debt through other legal remedies (civil suit, small-claims court), but cannot unilaterally withhold wages once the affidavit is filed.

Limitations on scope

Section 50-2-110 applies only to offsets for wage advances, employer loans, or personal charges on employer-issued credit cards. The statute does not authorize wage offsets for:

• Employer property allegedly damaged, lost, or unreturned (uniforms, tools, equipment);
• Cash-register shortages or inventory discrepancies attributed to the employee;
• Training costs, relocation expenses, or sign-on bonuses subject to repayment clauses; or
• Other employer claims for reimbursement or damages.

For these categories, the employer must either obtain a separate written agreement from the employee authorizing the deduction or pursue legal collection remedies. The Tennessee Department of Labor confirms that an employer may hold a final paycheck to recover unreturned property (uniform, tools, etc.) only if the employee has signed a written policy or agreement authorizing such withholding.

Minimum-wage floor

Even when an employer satisfies the procedural requirements of § 50-2-110, the offset cannot reduce the employee's wages below the applicable minimum wage. Tennessee Code Annotated § 50-2-114 requires covered employers to pay no less than the federal minimum wage under 29 U.S.C. § 206, currently $7.25 per hour. Deductions that would bring net pay below minimum wage for all hours worked in a pay period violate both state and federal law.

Employers must calculate the offset to ensure that after the deduction, the employee receives at least minimum wage for every hour worked. If the owed amount exceeds what can be offset in a single pay period without violating the minimum-wage floor, the employer must spread the offset across multiple pay periods or seek repayment through other means.

Voluntary benefit deductions and legally mandated withholdings

Section 50-2-110's procedural requirements do not apply to:

• Legally mandated withholdings: federal and state income tax, Social Security and Medicare (FICA), unemployment insurance contributions, and court-ordered wage garnishments (child support, creditor judgments, tax levies). These deductions are authorized or required by law.

• Voluntary benefit deductions: health insurance premiums, retirement plan contributions (401(k) deferrals), union dues, charitable contributions, and similar payroll deductions. These are permissible when the employee has provided written authorization, typically at hire or benefit enrollment. The employer's policy and benefit plan documents govern these deductions.

Separation and final-paycheck timing

The wage-offset rules in § 50-2-110 apply to both ongoing employment and final paychecks at separation. If an employer intends to offset a separating employee's final wages under § 50-2-110, the employer must still provide the fourteen-day advance written notice. This may create a timing conflict with Tennessee's final-paycheck deadline under Tenn. Code Ann. § 50-2-103(g): wages must be paid no later than the next regular payday or 21 days after separation, whichever is later. Employers should issue the § 50-2-110 notice well before anticipated separation when practicable. If the fourteen-day notice period extends beyond the final-paycheck deadline, the employer must pay the gross wages by the statutory deadline and pursue collection of the debt separately, or obtain the employee's agreement to the offset in a signed release or settlement agreement at separation.

Definitions

Tennessee Code Annotated § 50-2-110 defines "wages" to mean "any remuneration owed to an employee for services, including, but not limited to, commissions, bonuses, incentive program rewards and tips." The offset statute and its protections apply to all forms of compensation.

Enforcement

An employer that offsets wages in violation of § 50-2-110—for example, by failing to provide the fourteen-day notice, offsetting a debt outside the statute's scope, or proceeding after an employee files a dispute affidavit—may face liability for unpaid wages. Employees may file a wage complaint with the Tennessee Department of Labor & Workforce Development or pursue a civil action for recovery of improperly withheld amounts.

Source: Tenn. Dept. of Labor & Workforce Development — Wages & Breaks FAQ (discussing wage deduction requirements and the procedural safeguards of Tenn. Code Ann. § 50-2-110, including the written-agreement requirement, fourteen-day notice, affidavit dispute mechanism, and the rule that employers may hold final paychecks for unreturned property only if the employee signed a written agreement)

Source: Tenn. Code Ann. § 50-2-114 (establishing Tennessee's minimum wage requirement at the federal floor, effective July 1, 2022)