🇺🇸 Tennessee Overtime Laws — 2026 UPDATE

Overtime Laws in Tennessee 2026: Pay Rates, Exemptions & Tax Deduction (2026)

⚠️Informational only — not legal or tax advice.

Guide for Tennessee overtime laws 2026

Last verified: February 28, 2026

Next scheduled review: May 29, 2026

Overtime in Tennessee 2026

Table of Contents

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Tennessee Overtime Laws at a Glance (2026)

Tennessee Overtime Law — At a Glance (2026)
Details
Overtime threshold 40 hours per workweek
Overtime pay rate 1.5× regular rate of pay
Double time No
Daily overtime No — weekly calculation only
7th consecutive day rule No
State minimum wage (2026) $7.25/hour (federal rate — no separate state rate)
Exempt salary threshold (2026) Federal: $684/week ($35,568/year)
State enforcement agency Tennessee Department of Labor and Workforce Development — Labor Standards Unit (overtime jurisdiction referred to U.S. DOL)
Federal enforcement U.S. DOL Wage and Hour Division
Overtime tax deduction (federal) Up to $12,500/year (2025–2028) — FLSA-covered workers
Statute of limitations 2 years FLSA (3 years if willful)

Governing law: Fair Labor Standards Act, 29 U.S.C. § 207 Last verified: February 28, 2026

Does Tennessee Have Its Own Overtime Law?

Tennessee does not have a separate state overtime statute. Overtime in Tennessee is governed entirely by the federal Fair Labor Standards Act (FLSA).

Under the FLSA, 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. Tennessee’s Department of Labor and Workforce Development explicitly directs all overtime questions to the U.S. Department of Labor, Wage and Hour Division, as overtime regulation falls outside the state agency’s jurisdiction.

Tennessee’s Labor Standards Unit enforces the state’s Wage Regulations Act (Tenn. Code Ann. § 50-2-103), which governs paycheck timing, deductions, and meal break requirements — but that statute does not address overtime pay rates or overtime thresholds.

Federal statute: Fair Labor Standards Act, 29 U.S.C. § 207 U.S. DOL Overtime page: https://www.dol.gov/agencies/whd/overtime Tennessee DOL referrals page: https://www.tn.gov/workforce/employees/labor-laws/labor-laws-redirect/referrals.html

How Overtime Pay Is Calculated in Tennessee

What Is a “Workweek”?

Under the FLSA, a workweek is a fixed, regularly recurring period of 168 consecutive hours — seven consecutive 24-hour periods. A workweek does not have to start on Monday or align with a calendar week. The employer may designate any day and time as the start of the workweek, but once set, the workweek must remain consistent.

Each workweek stands alone. An employer cannot average hours across two or more workweeks to avoid overtime. If an employee works 50 hours one week and 30 the next, overtime is owed for the first week regardless of the second.

Source: 29 C.F.R. § 778.104–778.105

Pay Rate

Under the FLSA, nonexempt employees in Tennessee earn:

Time-and-a-half (1.5× regular rate):

  • All hours worked over 40 in a workweek

Tennessee has no daily overtime requirement. Working more than 8 hours in a single day does not trigger overtime unless total weekly hours exceed 40.

What Counts as the “Regular Rate of Pay”

The regular rate is not always the same as the hourly wage. Under 29 C.F.R. § 778.108, the regular rate includes:

  • Base hourly rate or salary equivalent
  • Non-discretionary bonuses and incentive pay
  • Shift differentials
  • Commissions
  • Piece-rate earnings

The regular rate does not include:

  • Discretionary bonuses (e.g., holiday gifts)
  • Employer contributions to benefit plans
  • Vacation, holiday, or sick pay when no work is performed

Calculation Example

Tennessee applies the federal minimum wage of $7.25/hour (T.C.A. § 50-2-114; 29 U.S.C. § 206).

Example — Weekly overtime in Tennessee:

An employee earns $7.25/hour and works 48 hours in one workweek:

  • Regular pay: 40 hours × $7.25 = $290.00
  • Overtime pay: 8 hours × ($7.25 × 1.5) = 8 × $10.875 = $87.00
  • Total weekly gross pay: $377.00

Source: 29 U.S.C. § 207; 29 C.F.R. § 778.108–778.122

For the current Tennessee minimum wage used in this calculation, see the Tennessee Minimum Wage page.

Who Is Exempt from Overtime in Tennessee?

Not all employees in Tennessee are entitled to overtime pay. Certain employees are classified as “exempt” under the FLSA. Because Tennessee has no independent state overtime law, only the federal exemption framework applies.

Federal FLSA Exemption Requirements

To be exempt from overtime under the FLSA, an employee must meet all three criteria:

1. Salary basis test: Paid a predetermined, fixed salary each pay period (not hourly)

2. Salary level test: Earn at least $684 per week ($35,568 per year)

3. Duties test: Perform specific job duties in one of these categories:

Tennessee Overtime Exemptions — Key Duty Test (2026)
Exemption Key duty requirement
Executive Manages enterprise or department; directs 2+ employees; authority to hire/fire
Administrative Office/non-manual work related to management or business operations; exercises independent judgment on significant matters
Professional Work requiring advanced knowledge in science or learning (prolonged, specialized study)
Computer employee Systems analysis, programming, software engineering — $684/week salary or $27.63/hour
Outside sales Primary duty is making sales away from the employer's place of business

Source: 29 C.F.R. Part 541

What Happened to the 2024 DOL Salary Threshold Increase?

In April 2024, the U.S. Department of Labor issued a final rule that would have raised the exempt salary threshold to $1,128 per week ($58,656/year) effective January 1, 2025.

On November 15, 2024, the U.S. District Court for the Eastern District of Texas vacated that rule nationwide in Texas v. U.S. Department of Labor (No. 4:24-cv-00499).

The salary threshold remains $684/week ($35,568/year) as of 2026.

Tennessee does not set a higher state-level salary threshold. The federal $684/week standard is the only applicable threshold for Tennessee employees.

Federal Overtime Tax Deduction (2025–2028)

The One Big Beautiful Bill Act (Public Law 119-21), signed on July 4, 2025, created a new federal income tax deduction for qualified overtime compensation under Internal Revenue Code § 225. This deduction is available for tax years 2025 through 2028.

Who Is Eligible

  • Nonexempt employees covered by the Fair Labor Standards Act (29 U.S.C. § 207)
  • Must have a Social Security number valid for employment
  • Cannot use the Married Filing Separately filing status

Who is NOT eligible:

  • Exempt (salaried) employees who do not receive FLSA overtime
  • Independent contractors (1099 workers) who are not FLSA-covered
  • Employees receiving overtime only under employer policy or collective bargaining, where that overtime is not also required by the FLSA

What Is Deductible

The deduction covers the premium portion of overtime pay — the amount that exceeds the regular rate of pay.

Overtime type What is deductible Example ($15.00/hr regular rate)
Time-and-a-half (1.5×) The "half" — 1/3 of total OT pay $7.50/hr per OT hour ($22.50 − $15.00)
Double time (2×) The "full extra" — 1/2 of total OT pay $15.00/hr per OT hour ($30.00 − $15.00)

IRS shortcut for time-and-a-half workers: Divide total overtime pay by 3. If you earned $6,000 in total overtime at time-and-a-half, the qualified overtime compensation is $2,000. (Source: IRS Notice 2025-69)

Deduction Limits (Federal Overtime Tax Deduction 2025–2028)
Filing status Maximum annual deduction Phase-out begins
Single $12,500 $150,000 MAGI
Married filing jointly $25,000 $300,000 MAGI
W-2 Reporting — Qualified Overtime Compensation
Tax year Employer reporting requirement
2025 NOT required to separately report (transition year — IRS Notice 2025-62). May voluntarily report in W-2 Box 14 as "QUAL OT" or provide a separate statement.
2026 and later REQUIRED to separately report qualified overtime compensation. The IRS has published a draft W-2 form indicating Box 12, Code TT for this purpose (draft form, subject to change before finalization).

If an employer did not separately report overtime for 2025, the IRS allows employees to use “any reasonable method” to calculate the deductible amount, including one-third of total overtime pay (for time-and-a-half workers), payroll records, or employer statements.

What This Deduction Does NOT Do

  • Does not exempt overtime from Social Security (6.2%) or Medicare (1.45%) taxes
  • Does not apply to state income taxes — federal deduction only
  • Does not change how much overtime pay an employee receives; it reduces taxable income at filing
  • Does not apply to overtime paid solely under employer policy that exceeds FLSA requirements

Source: IRS FAQs on Qualified Overtime Compensation Deduction; IRS Notice 2025-69; IRS Notice 2025-62; IRC § 225; P.L. 119-21, § 70202; Schedule 1-A (Form 1040) Official IRS page: https://www.irs.gov/newsroom/questions-and-answers-about-the-new-deduction-for-qualified-overtime-compensation

Tennessee Income Tax and the Overtime Deduction

Tennessee does not impose a state income tax on wages or earned income. The Hall income tax, which applied to certain investment income, was repealed effective January 1, 2021.

This means Tennessee employees receive an enhanced benefit from the federal overtime deduction. There is no state income tax from which to deduct overtime earnings — only federal income tax applies to overtime wages. Tennessee workers effectively pay federal income tax on overtime (reduced by the IRC § 225 deduction) and no state income tax.

Source: Tennessee Department of Revenue — GEN-34 (Income Tax Withholding): https://revenue.support.tn.gov/hc/en-us/articles/360057595051-GEN-34-Income-Tax-Withholding Hall Income Tax repeal: https://www.tn.gov/revenue/taxes/hall-income-tax.html

For Tennessee income tax details, see the Tennessee Income Tax page.

Can an Employer Require Overtime in Tennessee?

Under the FLSA, there is no federal limit on the number of hours an employer can require an adult employee (age 16 and older) to work in a workweek, as long as the employee is properly compensated for all overtime hours.

An employer may discipline or terminate an employee for refusing to work overtime, unless a specific law, employment contract, or collective bargaining agreement provides otherwise.

Tennessee does not have additional mandatory overtime restrictions beyond the FLSA. There are no state-level caps on required overtime hours for private-sector workers in Tennessee. At-will employees in Tennessee who refuse overtime may face disciplinary action.

Tennessee is an at-will employment state. Under T.C.A. § 50-1-304, employers may terminate employees for any reason or no reason, as long as the reason is not an unlawful one (such as retaliation for filing a wage complaint).

Scheduling

Tennessee has no state law regulating the number of hours or shifts an employer may schedule. The Tennessee Department of Labor and Workforce Development confirms that employers may schedule employees to work as many hours as they determine necessary, provided overtime pay rules are followed when applicable.

Source: Tennessee Department of Labor and Workforce Development — https://lwdsupport.tn.gov/hc/en-us/articles/360000129987-How-many-hours-in-a-day-week-can-an-employer-work-an-employee

Protections That Always Apply

Regardless of mandatory overtime policies, the following protections apply in Tennessee:

  • All overtime hours must be compensated at 1.5× the regular rate under 29 U.S.C. § 207
  • Employers cannot retaliate against employees who file wage complaints (29 U.S.C. § 215(a)(3))
  • Disability accommodation requests under the ADA may limit overtime requirements
  • Child labor laws restrict hours for employees under 18

Source: 29 U.S.C. § 207; T.C.A. § 50-1-304; https://www.dol.gov/agencies/whd/overtime

Industry-Specific Overtime Rules in Tennessee

Because Tennessee has no state overtime law, all industry-specific rules come from federal FLSA provisions that apply uniformly across Tennessee.

Healthcare (8-and-80 System)

Under 29 U.S.C. § 207(j), hospitals and residential care facilities may use a 14-day work period instead of the standard 7-day workweek. Under this arrangement, overtime is due after:

  • 8 hours in a single workday, or
  • 80 hours in the 14-day work period

whichever calculation results in more overtime pay. This alternative must be established by prior agreement between the employer and employees before the work is performed.

Source: 29 U.S.C. § 207(j)

Retail and Commission Employees

Under 29 U.S.C. § 207(i), retail or service establishment employees may be exempt from overtime if:

  • More than half their compensation comes from commissions, and
  • Their regular rate of pay exceeds 1.5× the applicable minimum wage (i.e., more than $10.875/hour based on $7.25 federal minimum wage)

Source: 29 U.S.C. § 207(i)

Public Sector / Government Employees

Under 29 U.S.C. § 207(o), state and local government employers in Tennessee may offer compensatory time off at 1.5 hours per overtime hour worked, instead of cash overtime pay, provided:

  • A prior agreement exists between the employer and employee (or union)
  • The accrued comp time cap is 240 hours (or 480 hours for public safety, emergency response, and seasonal employees)
  • Employees must be permitted to use accrued comp time within a reasonable period

Private-sector employers in Tennessee cannot offer comp time in lieu of overtime pay. Nonexempt private employees who work overtime must be paid in cash at 1.5× their regular rate.

The State of Tennessee’s own Attendance and Leave Manual (Tenn. Code Ann. § 4-4-105) governs compensatory time policies for state government employees, including premium overtime eligibility based on FLSA classification.

Source: 29 U.S.C. § 207(o); Tennessee Attendance and Leave Manual: https://www.tn.gov/hr/pr/attendance—leave-manual.html

Transportation (Motor Carrier Exemption)

Employees in Tennessee whose duties affect the safe operation of motor vehicles in interstate commerce may be exempt from FLSA overtime under the Motor Carrier Act exemption (49 U.S.C. § 31502). This typically includes drivers, driver’s helpers, loaders, and mechanics for carriers subject to the Secretary of Transportation’s jurisdiction.

Source: 49 U.S.C. § 31502; 29 U.S.C. § 213(b)(1)

Agriculture

Under the FLSA, agricultural workers are generally exempt from overtime requirements (29 U.S.C. § 213(b)(12)). Tennessee has no state law extending overtime protection to agricultural workers beyond federal law.

Source: 29 U.S.C. § 213(b)(12)

How to File an Overtime Wage Complaint in Tennessee

Employees in Tennessee who believe they have not received proper overtime pay have the following options. Note that the Tennessee Department of Labor and Workforce Development does not have jurisdiction over overtime violations — overtime complaints must go to the U.S. Department of Labor or private legal action.

Option 1: Tennessee Department of Labor — Wage Complaint (Limited Jurisdiction)

The Tennessee Department of Labor’s Labor Standards Unit processes claims for unpaid wages under Tennessee’s Wage Regulations Act (T.C.A. § 50-2-103). This covers final paycheck disputes and other wage payment issues governed by state law. The Labor Standards Unit does not handle overtime violations under the FLSA — those must be directed to the U.S. DOL.

Tennessee Wage Complaint Filing — State Agency (2026)
Details
Agency Tennessee Department of Labor and Workforce Development — Labor Standards Unit
Online filing https://www.tn.gov/workforce/employees/labor-laws/labor-laws-redirect/wages-breaks/wcf.html
Phone (844) 224-5818
Jurisdiction State Wage Regulations Act (T.C.A. § 50-2-103) — paycheck timing, deductions, final pay
Deadline Varies — file promptly

After submitting the online complaint, the Labor Standards Unit will issue a Statement of Wage Claim Form with an assigned inspector. The completed form must be returned to the inspector to initiate an investigation.

Option 2: U.S. Department of Labor — Wage and Hour Division (Primary for Overtime)

For FLSA overtime violations, employees should contact the U.S. DOL Wage and Hour Division directly. Tennessee WHD offices:

Tennessee Overtime Complaint — Federal (U.S. DOL WHD)
Details
Online filing https://www.dol.gov/agencies/whd/contact/complaints
National phone 1-866-487-9243 (toll-free)
Nashville WHD office (615) 781-5343
Knoxville WHD office (865) 545-4619
Memphis WHD office (901) 544-3418
Deadline 2 years from violation (3 years if willful)

Option 3: Private Lawsuit

Employees may file a lawsuit against their employer in state or federal court under 29 U.S.C. § 216(b). Recoverable remedies include:

  • Back wages owed
  • Liquidated damages (an additional amount equal to the unpaid wages)
  • Reasonable attorney’s fees and court costs

Retaliation Protection

Under the FLSA (29 U.S.C. § 215(a)(3)), employers cannot retaliate against employees for:

  • Filing an overtime wage complaint
  • Participating in a Wage and Hour Division investigation
  • Testifying in proceedings related to overtime violations

Source: https://www.tn.gov/workforce/employees/labor-laws/labor-laws-redirect/referrals.html; 29 U.S.C. § 216(b); 29 U.S.C. § 215(a)(3)

For information on retaliation protections and at-will employment, see the Tennessee Employment Law page.

Penalties for Overtime Violations in Tennessee

Federal FLSA Penalties
Penalty type Amount
Back wages Full amount of unpaid overtime owed
Liquidated damages Equal to unpaid wages (effectively doubles recovery)
Civil monetary penalty Up to $2,451 per violation (willful/repeated — adjusted annually)
Criminal prosecution Willful violations: fines up to $10,000; second offense: up to 6 months imprisonment

Source: 29 U.S.C. § 216

Tennessee State Penalties

Tennessee’s Wage Regulations Act (T.C.A. § 50-2-103) does not provide independent overtime remedies. Because overtime in Tennessee is governed solely by the FLSA, employees who are not paid proper overtime rely on federal remedies — including back wages and liquidated damages — rather than state-law penalties.

Source: T.C.A. § 50-2-103; https://www.tn.gov/workforce/employees/labor-laws/labor-laws-redirect/wages-breaks.html

Tennessee Overtime Law Updates (2025–2026)

Federal Changes Affecting Tennessee

  • July 4, 2025: One Big Beautiful Bill Act (P.L. 119-21) signed — created federal overtime tax deduction for tax years 2025–2028 (IRC § 225). Because Tennessee has no state income tax on wages, Tennessee workers benefit from this deduction without any additional state income tax burden on overtime earnings.
  • November 15, 2024: DOL salary threshold rule vacated by U.S. District Court for the Eastern District of Texas — exempt salary threshold remains $684/week ($35,568/year).

Tennessee State Changes

Tennessee has not enacted any state-level overtime legislation in the 2025–2026 period. The state continues to follow the FLSA entirely for overtime purposes.

Tennessee’s Hall income tax — which applied to certain investment income — was repealed effective January 1, 2021. Tennessee has no state income tax on wages, a fact that benefits all Tennessee workers receiving the new federal overtime deduction.

Source: Tennessee Department of Revenue: https://www.tn.gov/revenue/taxes/hall-income-tax.html

No Pending Tennessee Overtime Tax Legislation

As of February 2026, Tennessee has no pending state legislation to create a state-level overtime income tax deduction. Because Tennessee already imposes no income tax on wages, such legislation would be redundant.

Last reviewed: February 28, 2026 Next scheduled review: May 28, 2026

Frequently Asked Questions About Overtime in Tennessee

Does Tennessee have overtime laws?

Tennessee does not have a separate state overtime statute. Overtime in Tennessee is governed by the federal Fair Labor Standards Act (FLSA). Under the FLSA, covered nonexempt employees must receive overtime pay at 1.5 times their regular rate for all hours worked over 40 in a workweek.

What is the overtime rate in Tennessee in 2026?

The overtime rate in Tennessee is 1.5 times the employee’s regular rate of pay. Based on the federal minimum wage of $7.25/hour — which applies in Tennessee — the minimum overtime rate is $10.875/hour. There is no double-time requirement in Tennessee under federal or state law.

Does Tennessee require daily overtime?

No. Overtime in Tennessee is calculated on a weekly basis only. Working more than 8 hours in a single day does not trigger overtime unless total weekly hours exceed 40.

Is mandatory overtime legal in Tennessee?

Under federal law, employers can generally require adult employees to work overtime. Tennessee does not have additional state-level restrictions on mandatory overtime in the private sector. Employees who work mandatory overtime must be paid at 1.5× their regular rate for all hours over 40 in the workweek.

Am I exempt from overtime in Tennessee?

Exemption depends on both salary level and job duties. Under the FLSA, employees must earn at least $684/week on a salary basis and perform executive, administrative, professional, computer-related, or outside sales duties. Tennessee does not set a higher state salary threshold — the federal $684/week standard is the only applicable threshold.

Can salaried employees get overtime in Tennessee?

Yes. Being paid a salary does not automatically make an employee exempt from overtime. Salaried employees who earn less than $684/week, or who do not meet the FLSA duties tests, are nonexempt and entitled to overtime pay for all hours over 40 in a workweek.

Is overtime taxed in Tennessee?

Overtime pay is subject to federal income tax. However, under the One Big Beautiful Bill Act (2025–2028), FLSA-covered nonexempt employees may deduct up to $12,500 (or $25,000 for married filing jointly) of the premium portion of overtime from federal taxable income. Tennessee does not impose a state income tax on wages, so there is no state income tax on overtime pay.

How do I calculate the overtime tax deduction in Tennessee?

For time-and-a-half pay, the deductible amount is one-third of total overtime pay. For example, if you earned $9,000 in total overtime at time-and-a-half, the qualified overtime compensation deduction is $3,000. The IRS confirms this method in Notice 2025-69. The deduction is claimed on Schedule 1-A of Form 1040.

How do I file an overtime complaint in Tennessee?

Overtime is a federal matter in Tennessee. File a complaint with the U.S. DOL Wage and Hour Division online at https://www.dol.gov/agencies/whd/contact/complaints or call 1-866-487-9243. Nashville: (615) 781-5343; Knoxville: (865) 545-4619; Memphis: (901) 544-3418. The FLSA statute of limitations is 2 years (3 years for willful violations).

Can my employer fire me for refusing overtime in Tennessee?

In most cases, yes. Tennessee is an at-will employment state, and employers may discipline or terminate employees who refuse overtime, unless a law, employment contract, or collective bargaining agreement provides otherwise. However, employers cannot retaliate against employees for filing overtime wage complaints under 29 U.S.C. § 215(a)(3).

Can my employer give comp time instead of overtime pay in Tennessee?

Private-sector employers in Tennessee cannot offer comp time in lieu of overtime pay. Nonexempt private employees who work overtime must be paid cash at 1.5× their regular rate. Public-sector employers (state and local government) may offer comp time at 1.5 hours per overtime hour, up to 240 hours (480 hours for public safety workers), provided a prior agreement exists.

Does working on weekends or holidays count as overtime in Tennessee?

No. Working on weekends or holidays does not automatically constitute overtime under the FLSA or Tennessee law. Overtime depends solely on total hours worked in the workweek — not on which days those hours fall. An employer may voluntarily pay premium rates for weekend or holiday work, but is not legally required to do so.

What happens if my employer doesn’t pay overtime in Tennessee?

Employees may recover unpaid overtime wages, liquidated damages equal to the unpaid amount, and attorney’s fees under 29 U.S.C. § 216(b). The FLSA statute of limitations is 2 years (3 years if the violation is willful). Contact the U.S. DOL Wage and Hour Division or consult a licensed attorney.

What is the statute of limitations for overtime claims in Tennessee?

Under the FLSA: 2 years from the date of the violation (3 years if the violation is willful). Tennessee has no independent state overtime statute of limitations because overtime is governed solely by federal law in Tennessee.

Does Tennessee’s no-income-tax status affect my overtime pay?

Yes — in a favorable way. Because Tennessee does not impose a state income tax on wages (the Hall income tax was repealed in 2021), all of an employee’s overtime earnings are subject only to federal income tax. Combined with the new federal overtime deduction under IRC § 225, Tennessee workers keep more of their overtime pay than employees in most other states.

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Legal Disclaimer: Nature of This Compilation This document is a compilation of publicly available information from official government sources. It is NOT: Legal advice An interpretation of laws or regulations A substitute for consultation with a licensed attorney A comprehensive treatment of all applicable laws Guaranteed to be complete or current