Tennessee law does not require employers to offer fringe benefits like paid vacation time. However, if an employer has a policy or labor agreement that provides these benefits and states that accrued, unused vacation time will be paid upon termination of employment, the employer must honor that agreement.
Tennessee Labor Laws
Tennessee Minimum Wage
Tennessee does not have its own minimum wage law. However, employers in the state are required to pay at least $7.25 per hour, in accordance with federal law.
Tennessee Labor Law Posters
Simplify labor law compliance and make workplace policies visible with J. J. Keller state and federal labor law posters.
History of Tennessee Labor Laws
A few years after the Fair Labor Standards Act was passed in 1938, a significant case from Tennessee reached the U.S. Supreme Court. In the 1944 case, Tennessee Coal Co. v. Muscoda Local No. 123, the court addressed the issue of underground travel in iron ore mines. The ruling determined that this travel time should be compensated because:
- There was physical or mental exertion by employees.
- The exertion was controlled or required by the employer.
- The exertion was primarily for the benefit of the employer.
Municipality Minimum Wage Laws
Since the passage of HB 501 in 2013, local governments in Tennessee have been prohibited from mandating that private employers pay wages higher than those required by federal and state minimum wage laws.
Tennessee Minimum Wage Exemptions
Employers should adhere to federal rules regarding exemptions from minimum wage requirements under the Fair Labor Standards Act (FLSA). Exempt employees include:
- Executive, administrative, and professional employees
- Outside sales employees and those in specific computer-related occupations
- Employees of certain seasonal amusement or recreational establishments
- Certain farm workers
- Casual babysitters and companions to the elderly or infirm
Tennessee Posting Requirements
Required posters:
- Child Labor
- Fair Employment
- Safety and Health Protection on the Job
- Payday Notice
- Unemployment Insurance
- Workers' Compensation
- No Smoking Sign
Tipped Wage in Tennessee
In Tennessee, employers are allowed to pay tipped employees the federal minimum wage of $2.13 per hour. However, if the combined amount of this wage and tips does not reach at least $7.25 per hour, the employer must make up the difference.
Overtime Wage in Tennessee
In Tennessee, employees who are exempt from the overtime requirements of the Fair Labor Standards Act (FLSA) do not need to be paid overtime. These exempt workers include:
- Executive, administrative, and professional employees
- Outside sales employees and those in specific computer-related occupations
- Employees of certain seasonal amusement or recreational establishments
- Certain farm workers
- Casual babysitters and companions to the elderly or infirm
- Certain commissioned employees of retail establishments, auto and other sales workers, and certain parts clerks and mechanics
- Taxi drivers and some other transportation industry employees
- Announcers, news editors, and chief engineers of certain non-metropolitan broadcasting systems
- Domestic service workers living in the employer’s residence
- Employees of motion picture theaters
- Farm workers
Child Labor Laws in Tennessee
Minors aged 14 or 15 are restricted from working:
- During school hours
- Between 7:00 p.m. and 7:00 a.m.
- More than 3 hours per day on a school day
- More than 8 hours per day on a non-school day
- More than 18 hours per week during a school week
- More than 40 hours per week during a non-school week
Minors aged 16 or 17 may not work during hours they are required to attend classes. Additionally, from Sunday through Thursday evenings preceding a school day, they may not work between 10:00 p.m. and 6:00 a.m. However, with parental or guardian consent, they may work until midnight on up to three of those school nights.
Employer Recordkeeping Requirements in Tennessee
Employers in Tennessee are required to keep the following records for at least three years:
- Employee’s full name and Social Security number
- Address, including zip code
- Birth date, if younger than 19
- Sex and occupation
- Time and day of week when the employee’s workweek begins
- Hours worked each day and total hours worked each workweek
- Basis on which the employee’s wages are paid
- Regular hourly pay rate
- Total daily or weekly straight-time earnings
- Total overtime earnings for the workweek
- All additions to or deductions from the employee’s wages
- Total wages paid each pay period
- Date of payment and the pay period covered by the payment
Tennessee Labor Law Questions & Answers
Yes, small businesses in Tennessee are required to pay at least $7.25 per hour, as mandated by the federal Fair Labor Standards Act.
Under the Tennessee Child Labor Act, minors aged 14 or 15 can work up to 3 hours per day on a school day and 8 hours per day on a non-school day. They can work up to 18 hours during a school week and 40 hours during a non-school week.
Tennessee does not have its own overtime law. According to federal law, employers can require overtime as long as they pay time-and-a-half the employee’s regular rate of pay for any hours worked over 40 in a workweek.
If an employee is scheduled to work six consecutive hours, they must be given a 30-minute meal or rest break, which cannot occur during or before the first hour of scheduled work. Employees do not need to be paid for this 30-minute break. However, if the workplace environment allows for ample opportunity to take this break, such as in the food/beverage or security guard industries, employers are not required to schedule it.
Tennessee Labor Law Posters
Simplify labor law compliance and make workplace policies visible with J. J. Keller state and federal labor law posters.