Tennessee Minimum Wage 2026
⚠️Informational only — not legal or tax advice.
Last Updated: February 4, 2026
Last Reviewed: February 4, 2026
Applicable Period: 2026
Jurisdiction: State of Tennessee, United States
Update Schedule: Quarterly reviews in 2026; annual reviews thereafter
Table of Contents
- Introduction
- Tennessee Minimum Wage – 2026 Quick Reference
- Overview of Minimum Wage Law in Tennessee
- Current Minimum Wage Rates in Tennessee 2026
- Minimum Wage for Tipped Employees
- Local Minimum Wage Ordinances in Tennessee
- Who Is Covered and Who Is Exempt
- Employer Obligations and Enforcement
- Tennessee Minimum Wage vs Federal Law
- Minimum Wage Posting Requirements
- Frequently Asked Questions
- Information Verification Log
Introduction
The minimum wage in Tennessee establishes the lowest hourly compensation that employers must legally provide to covered employees. For 2026, Tennessee adopts the federal minimum wage of $7.25 per hour, which has remained unchanged since July 24, 2009. Tennessee law requires employers to pay at least the federal minimum wage regardless of federal subminimum wage provisions.
Minimum wage regulations in Tennessee operate under Tennessee Code § 50-2-114 alongside federal requirements established by the Fair Labor Standards Act (FLSA). Tennessee does not have an independent state minimum wage law, instead requiring employers to pay the federal rate. Tennessee allows tip credits consistent with federal law, and local governments are prohibited by state law from enacting higher minimum wage ordinances.
This page provides an authoritative overview of Tennessee minimum wage law for 2026, including current rates, tipped employee provisions, local wage preemption, coverage and exemptions, enforcement procedures, and compliance requirements. All information is compiled from official government sources.
| Tennessee Minimum Wage — 2026 Quick Reference | |||
|---|---|---|---|
| Category | Rate | Effective Date | Official Source |
| State minimum wage | Federal rate applies | — | Tennessee Code § 50-2-114 |
| Federal minimum wage | $7.25/hour | July 24, 2009 | Fair Labor Standards Act (FLSA) |
| Tipped minimum wage | $2.13/hour | — | FLSA § 203(m) |
| Tip credit allowed | Yes (up to $5.12) | — | Federal law |
| Youth minimum wage | $4.25/hour (first 90 days, under 20) | — | FLSA |
| Next scheduled increase | None | N/A | No future increases scheduled |
| Rate adjustment mechanism | Federal adoption | — | TN Code § 50-2-114 |
| Local minimum wages | Prohibited | — | TN Code § 50-2-112 |
Last verified: February 4, 2026 via Tennessee Department of Labor and Workforce Development and U.S. Department of Labor
Overview of Minimum Wage Law in Tennessee
Legal Authority
Tennessee minimum wage requirements are established under Tennessee Code § 50-2-114, enacted in 2022. This statute requires employers to pay at least the federal minimum wage under 29 U.S.C. § 206, regardless of subminimum wage provisions authorized under federal law for workers with disabilities. The Tennessee Department of Labor and Workforce Development administers wage regulations through its Labor Standards Unit, which processes wage claims and enforces Tennessee’s Wage Regulations Act.
Unlike most states, Tennessee does not maintain an independent minimum wage rate separate from federal law. Tennessee Code § 50-2-114 effectively incorporates the federal minimum wage by reference, requiring employers to pay employees no less than the FLSA rate.
Relationship to Federal Law
Under the Fair Labor Standards Act (FLSA), the federal minimum wage establishes a floor of $7.25 per hour for covered employers and employees. Tennessee law adopts the federal minimum wage rate by requiring payment of at least the federal rate. When both state and federal minimum wage laws apply, the requirements are identical since Tennessee has no independent higher rate.
Tennessee Code § 50-2-114 specifically prohibits employers from paying below the federal minimum wage even in cases where federal law might permit a subminimum wage under 29 U.S.C. § 214(c) for workers with disabilities. This makes Tennessee’s requirement slightly more protective than federal law in that specific circumstance, though employers covered by the FLSA must comply with federal standards in all other respects.
Coverage Scope
Tennessee minimum wage law applies to employers not engaged in interstate commerce who employ individuals born or naturalized in the United States or legally present in the country. Employers engaged in interstate commerce or with annual gross sales exceeding $500,000 are covered by the FLSA and must comply with federal minimum wage requirements. Most Tennessee employers fall under FLSA coverage, making the federal minimum wage the applicable standard.
The Tennessee Department of Labor and Workforce Development’s Labor Standards Unit enforces the Wage Regulations Act, which governs wage payment timing, deductions, and final paycheck requirements. While Tennessee lacks a comprehensive state minimum wage law, federal FLSA standards apply to most Tennessee workplaces.
Higher Rate Principle
The principle of “higher prevailing rate” requires employers to pay the highest applicable minimum wage—whether federal, state, or local. In Tennessee, this typically means paying the federal minimum wage of $7.25 per hour, as Tennessee has no higher state rate and prohibits local governments from enacting minimum wages exceeding the federal or state requirement.
Current Minimum Wage Rates in Tennessee 2026
Standard Hourly Minimum Wage
As of 2026, the standard minimum wage in Tennessee is $7.25 per hour for covered employees, matching the federal minimum wage established under the FLSA. This rate applies to all non-exempt employees in Tennessee whose employers are subject to either Tennessee Code § 50-2-114 or the federal Fair Labor Standards Act.
The federal minimum wage of $7.25 per hour took effect on July 24, 2009, and has not increased since that date. Tennessee adopted this rate by statute in 2022 when the legislature enacted Tennessee Code § 50-2-114, which requires employers to pay at least the federal minimum regardless of federal subminimum wage provisions. No increases to the federal minimum wage are currently scheduled, and Tennessee has no mechanism for independent adjustment of its minimum wage requirement.
Tennessee does not establish different minimum wage rates based on geographic location, employer size, or industry. The uniform $7.25 per hour rate applies statewide to all covered employers and employees.
Youth Minimum Wage
Tennessee follows federal law regarding youth wages. Under the FLSA, employers may pay employees under 20 years of age a youth minimum wage of $4.25 per hour during their first 90 consecutive calendar days of employment. After 90 days, or when the employee turns 20 years old (whichever comes first), employers must pay at least the full minimum wage of $7.25 per hour.
The youth minimum wage cannot be used to displace other workers. Employers cannot terminate employees, reduce their hours, or take other adverse actions to hire youth workers at the lower rate. The federal youth wage provisions apply in Tennessee through FLSA coverage.
Scheduled Increases
No minimum wage increases are currently scheduled in Tennessee. The minimum wage will remain at $7.25 per hour unless modified by federal legislation or Tennessee enacts an independent state minimum wage law.
Tennessee does not have an automatic cost-of-living adjustment mechanism or scheduled increase formula. Any change to Tennessee’s minimum wage would require action by the U.S. Congress to raise the federal minimum wage, or new legislation by the Tennessee General Assembly to establish a higher state rate.
Minimum Wage for Tipped Employees
Tipped Employee Cash Wage
Tennessee permits employers to pay tipped employees a reduced cash wage, provided that employee tips combined with the cash wage equal at least the full minimum wage. Tennessee follows federal FLSA provisions for tipped employees.
Cash wage requirement: $2.13 per hour
Maximum tip credit: $5.12 per hour
Total minimum compensation: $7.25 per hour (cash wage + tips)
Who Qualifies as a Tipped Employee
Under federal law applied in Tennessee, a “tipped employee” is defined as an employee engaged in an occupation in which they customarily and regularly receive more than $30 per month in tips. Qualifying occupations typically include:
- Restaurant servers and bartenders
- Hotel and hospitality service workers
- Casino dealers and service staff
- Parking attendants and valets
- Delivery drivers who receive tips
- Hair stylists and barbers who receive tips
- Tour guides and similar service positions
Employer Obligations for Tipped Workers
Employers who claim a tip credit must:
- Inform employees of the tip credit provisions before claiming the credit, including notification that the employer will use tips as a credit against minimum wage obligations
- Ensure total compensation (cash wage plus tips) equals or exceeds $7.25 per hour for all hours worked
- Pay the difference if an employee’s tips fail to bring total compensation to the minimum wage for any workweek
- Maintain accurate records of employee tips and hours worked, including tip income reported by employees
- Allow employees to retain all tips except as permitted under valid tip pooling arrangements
If an employee’s tips combined with the $2.13 cash wage do not reach $7.25 per hour for a workweek, the employer must pay additional wages to make up the shortfall on the regular payday for that pay period.
Tip Pooling and Sharing
Federal law governs tip pooling in Tennessee. Employers who take a tip credit may require employees to contribute to a tip pool or share tips only with employees who customarily and regularly receive tips, such as:
- Servers and bartenders
- Bussers and food runners
- Service bartenders who prepare drinks for servers
- Host staff in limited circumstances
Managers and supervisors are prohibited from participating in tip pools or receiving any portion of employee tips, regardless of whether they provide direct service to customers. This federal prohibition applies even if an employer pays the full minimum wage without claiming a tip credit.
Service charges added to customer bills (such as mandatory gratuity for large parties) are not considered tips and belong to the employer unless the employer has a policy of distributing service charges to employees. Employers must clearly distinguish between service charges retained by the employer and tips that belong to employees.
Local Minimum Wage Ordinances in Tennessee
Tennessee law prohibits cities and counties from enacting their own minimum wage rates that differ from the federal minimum wage. All employers in Tennessee must comply with the uniform statewide adoption of the federal rate of $7.25 per hour.
Under Tennessee Code § 50-2-112, enacted in 2013 and amended in 2023, Tennessee has preempted local regulation of minimum wage, preventing municipalities from establishing higher rates or imposing wage requirements beyond federal law. The statute specifically prohibits local governments from requiring private employers to pay wages exceeding the minimum required under applicable federal or state law as a condition of doing business within the jurisdiction or contracting with the local government.
State Preemption of Local Wage Laws
Tennessee Code § 50-2-112 establishes comprehensive preemption of local wage and employment benefit mandates. Key provisions include:
Prohibition on Local Minimum Wages: Local governments cannot require private employers to pay hourly wages exceeding the federal or state minimum wage. This prohibition applies regardless of any local charter, ordinance, or resolution to the contrary.
Purchasing and Contracting Restrictions: Local governments cannot use purchasing or contracting procedures to control or affect wages or employment benefits provided by vendors, contractors, service providers, or other parties doing business with the local government. Local governments are prohibited from awarding preferences based on wages or benefits in bid evaluations or contractor qualifications.
Federal Funding Exception: If compliance with the local wage preemption law would result in denial of federal funds otherwise available to a local government, the local government may require private employers to pay wages necessary to meet federal requirements, but only relative to the specific contract, project, or program receiving federal funds.
Prevailing Wage for Government Contracts
While local governments cannot establish general minimum wages, Tennessee law does recognize prevailing wage requirements for certain government construction projects. For construction contracts, local governments have no authority to require prevailing wages exceeding:
- Wages established by the prevailing wage commission for state highway construction projects under Tennessee Code Title 12, Chapter 4, Part 4; or
- Tennessee occupational wages prepared annually by the Tennessee Department of Labor and Workforce Development, Employment Security Division, Labor Market Information for state building projects
These prevailing wage provisions apply only to specific government construction projects and do not establish general minimum wage requirements for private employers.
Uniformity Across Tennessee
Because of state preemption, Tennessee maintains a uniform minimum wage equal to the federal rate throughout all cities, counties, and municipalities. No Tennessee locality has enacted or can enact a minimum wage exceeding $7.25 per hour. Employers operating in multiple Tennessee locations need only comply with the single statewide adoption of the federal minimum wage.
Who Is Covered and Who Is Exempt
Employees Covered by Tennessee Minimum Wage
Tennessee minimum wage law as established by Tennessee Code § 50-2-114 covers employers not engaged in interstate commerce who employ individuals who are U.S. citizens or legal residents. Most employers in Tennessee are also covered by the federal Fair Labor Standards Act due to interstate commerce activity or gross annual sales exceeding $500,000.
Unless specifically exempted, covered employees include:
- Private sector workers: Full-time and part-time employees of private businesses
- Hourly employees: Workers compensated on an hourly basis
- Salaried non-exempt employees: Employees paid on a salary basis who do not qualify for overtime exemption under federal or state law
- Temporary and seasonal workers: Employees in temporary or seasonal positions
- Minor employees: Workers under age 18, subject to child labor law restrictions
- Tipped employees: Service workers who receive tips must be paid at least $2.13 per hour cash wage
Most employees working in Tennessee are entitled to the minimum wage unless they fall within specific exemptions under federal or state law.
Exemptions from Minimum Wage Requirements
The following categories of employees may be exempt from Tennessee minimum wage requirements:
Executive, Administrative, and Professional Employees
Employees performing bona fide executive, administrative, or professional duties may be exempt from minimum wage and overtime requirements if they meet both salary and duties tests. Under the federal FLSA standard currently enforced, the minimum salary threshold for exempt status is $684 per week ($35,568 annually). Tennessee follows federal exemption standards for these white-collar exemptions.
Outside Sales Employees
Employees whose primary duty is making sales or obtaining orders or contracts away from the employer’s place of business and who are customarily and regularly engaged away from the employer’s business location are exempt from minimum wage and overtime requirements.
Agricultural Workers
Agricultural employees are generally exempt from FLSA minimum wage requirements if employed on small farms (those that did not use more than 500 man-days of agricultural labor in any calendar quarter of the preceding calendar year). Employees of immediate family members of the farm operator are also exempt.
Youth Workers Under 20
Employees under 20 years of age may be paid $4.25 per hour during their first 90 consecutive calendar days of employment with an employer. After 90 days or when the employee turns 20, whichever comes first, the employee must be paid at least the full minimum wage.
Student Learners and Full-Time Students
Full-time students employed by retail or service establishments, agriculture, or institutions of higher education may be paid 85% of the minimum wage (currently $6.16 per hour) under certificates issued by the U.S. Department of Labor. Student learners in vocational education programs may also be paid at subminimum rates under proper certification.
Workers with Disabilities (Limited Application)
Tennessee Code § 50-2-114 specifically prohibits employers from paying below the federal minimum wage even when federal law permits subminimum wages for workers with disabilities under 29 U.S.C. § 214(c). This makes Tennessee law slightly more protective than federal law in this specific area. However, workers with disabilities employed in settings covered by federal certificates issued prior to Tennessee’s 2022 law may still be subject to federal subminimum wage provisions due to federal preemption.
Independent Contractors
Properly classified independent contractors are not employees and therefore not covered by minimum wage requirements. Tennessee follows federal standards for determining whether a worker is an employee or independent contractor. Misclassification of employees as independent contractors may result in penalties and liability for unpaid wages.
Certain Seasonal Amusement and Recreational Establishments
Employees of seasonal amusement or recreational establishments that operate no more than seven months in any calendar year or earned the majority of their income within six months are exempt from FLSA overtime requirements, though they remain covered by minimum wage provisions.
Employer Obligations and Enforcement
Employer Compliance Requirements
Employers subject to Tennessee wage laws and the Fair Labor Standards Act must:
- Pay the applicable minimum wage of at least $7.25 per hour for all hours worked by non-exempt employees
- Maintain accurate payroll records documenting employee information, hours worked, and wages paid
- Display required workplace posters informing employees of their rights under federal and state law
- Issue compliant wage statements at the time of wage payment
- Provide timely wage payments according to Tennessee’s wage payment frequency requirements
- Pay final wages promptly upon separation of employment
Recordkeeping Requirements: Employers must maintain payroll records for at least three years under the FLSA, including:
- 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 employee’s workweek begins
- Hours worked each day and total hours worked each workweek
- Basis on which employee’s wages are paid (hourly rate, piece rate, salary, etc.)
- Regular hourly pay rate
- Total daily or weekly straight-time earnings
- Total overtime earnings for the workweek
- All additions to or deductions from wages
- Total wages paid each pay period
- Date of payment and pay period covered
Tennessee Wage Payment Requirements: Under Tennessee Code § 50-2-103, employers making wage payments in two or more periods per month must pay wages as follows:
- All wages earned before the first day of any month must be paid by the 20th day of the following month
- All wages earned before the 16th day of any month must be paid by the 5th day of the succeeding month
Enforcement of Minimum Wage Law
The Tennessee Department of Labor and Workforce Development, through its Labor Standards Unit, enforces wage payment requirements under the Tennessee Wage Regulations Act. The U.S. Department of Labor Wage and Hour Division enforces federal minimum wage requirements under the Fair Labor Standards Act.
Tennessee Enforcement: The Labor Standards Unit investigates wage complaints related to:
- Unpaid wages and final paychecks
- Wage payment timing violations
- Illegal wage deductions
- Sex-based wage discrimination
- Child labor law violations
Federal Enforcement: The U.S. Department of Labor Wage and Hour Division investigates complaints related to:
- Minimum wage violations
- Overtime pay violations
- Tip credit and tip pooling violations
- Improper employee classification
- Recordkeeping violations
Filing a Wage Complaint in Tennessee:
Employees may file wage complaints with the Tennessee Department of Labor and Workforce Development Labor Standards Unit through:
- Online portal: File Wage Complaint
- Phone: Contact the Labor Standards Unit for guidance on filing
- Mail: Submit completed Statement of Wage Claim Form to assigned inspector
For federal minimum wage violations, employees may file complaints with:
- U.S. Department of Labor Wage and Hour Division
- Website: www.dol.gov/whd
- Phone: 1-866-4-US-WAGE (1-866-487-9243)
Tennessee law prohibits retaliation against employees who file wage complaints or cooperate with investigations. The FLSA similarly prohibits employer retaliation against employees who assert their rights under federal law.
Penalties and Remedies
Employers who violate Tennessee wage payment requirements or federal minimum wage law may be subject to:
Back Wages: Employers must pay employees the difference between wages paid and the required minimum wage for all hours worked. Under the FLSA, back wages can be recovered for up to two years from the filing date, or three years for willful violations.
Liquidated Damages: Under the Fair Labor Standards Act, employees may recover liquidated damages equal to the amount of unpaid minimum wages and overtime, effectively doubling the recovery. Tennessee’s Wage Regulations Act does not provide for liquidated damages, but federal law applies to FLSA-covered employers.
Civil Penalties: The U.S. Department of Labor may assess civil money penalties of up to $2,374 per violation for willful or repeated minimum wage or overtime violations. Additional penalties may apply for child labor violations.
Criminal Penalties: Under Tennessee Code § 50-2-103, willful violations of Tennessee’s wage payment law constitute a Class B misdemeanor. Federal willful violations of the FLSA may also result in criminal prosecution, with fines up to $10,000 and imprisonment for repeat offenders.
Attorney Fees and Costs: Under the FLSA, employees who prevail in wage and hour actions may recover reasonable attorney fees and litigation costs in addition to back wages and liquidated damages.
Tennessee Sex-Based Wage Discrimination: Under Tennessee Code § 50-2-202, employers who pay discriminatory wages based on sex must increase wages to comply, cannot reduce the complainant’s wages, and may be liable for the wage differential. Tennessee law prohibits retaliation against employees who file sex discrimination wage claims.
Tennessee Minimum Wage vs Federal Law
The Federal Minimum Wage Floor
The Fair Labor Standards Act (FLSA) establishes a federal minimum wage of $7.25 per hour, which has remained unchanged since July 24, 2009. This federal rate sets a floor for minimum wage requirements nationwide and applies to employers engaged in interstate commerce or with annual gross sales exceeding $500,000. The FLSA also covers certain enterprises and employees regardless of dollar volume, including hospitals, schools, and government agencies.
When State Law Applies
Tennessee adopts the federal minimum wage rate through Tennessee Code § 50-2-114, which requires employers to pay at least the federal minimum wage under 29 U.S.C. § 206. For employers covered by both Tennessee statute and federal law, the requirements are functionally identical at $7.25 per hour.
Tennessee Code § 50-2-114 applies to employers not engaged in interstate commerce who employ U.S. citizens or legal residents. The statute provides a state-law basis for minimum wage requirements that might not otherwise be covered by the FLSA due to lack of interstate commerce activity. In practice, most Tennessee employers are covered by the FLSA, making federal law the primary enforcement mechanism.
Tennessee law is slightly more protective than federal law in one specific respect: Tennessee Code § 50-2-114 prohibits employers from paying below the federal minimum wage even when 29 U.S.C. § 214(c) might authorize subminimum wages for workers with disabilities. This prevents Tennessee employers from using federal disability-based subminimum wage certificates, though the practical effect is limited due to federal preemption issues.
Higher Applicable Rate Rule
The fundamental principle governing minimum wage compliance is that employers must pay whichever rate—federal, state, or local—provides employees the highest hourly wage. In Tennessee, this analysis is simplified because:
- Tennessee has no independent state minimum wage rate higher than federal law
- Tennessee prohibits local governments from enacting minimum wages exceeding federal or state requirements
- The applicable minimum wage is therefore $7.25 per hour throughout Tennessee
Employers need only ensure compliance with the federal minimum wage of $7.25 per hour and applicable federal provisions regarding tipped employees, youth wages, and exemptions.
| Regional Minimum Wage Context | |
|---|---|
| Tennessee’s minimum wage of $7.25 can be compared to surrounding states for regional context. | |
| State | 2026 Rate |
| Tennessee | $7.25 |
| Kentucky | $7.25 |
| Virginia | $12.41 |
| North Carolina | $7.25 |
| Georgia | $5.15 (federal $7.25 applies) |
| Alabama | No state minimum (federal $7.25 applies) |
| Mississippi | No state minimum (federal $7.25 applies) |
| Arkansas | $11.00 |
| Missouri | $13.75 |
Tennessee’s rate equals the federal minimum and matches rates in Kentucky, North Carolina, Alabama, and Mississippi (where federal law applies). Arkansas and Missouri have established higher state minimum wages through ballot initiatives, while Virginia enacted a higher rate through legislation. Employers operating near state borders should be aware that employees working across state lines may be entitled to different minimum wage rates depending on work location.
Note: Rates shown are standard minimum wages and may not reflect local or industry-specific variations in neighboring states.
Minimum Wage Posting Requirements
Tennessee law requires employers to display workplace posters informing employees of their rights under employment laws. While Tennessee does not have a specific state minimum wage poster, employers must display federal minimum wage posters and may need to display Tennessee labor law posters covering other wage and hour requirements.
Required Federal Poster:
The U.S. Department of Labor requires covered employers to display the Employee Rights Under the Fair Labor Standards Act poster, which includes information about:
- Federal minimum wage rate
- Overtime pay requirements
- Child labor protections
- Equal pay provisions
- Employee rights and employer obligations
Tennessee Wage Regulation Poster:
The Tennessee Department of Labor and Workforce Development provides a Wage Regulation/Child Labor Poster that employers must display. This poster covers:
- Tennessee wage payment requirements
- Meal and rest break requirements
- Child labor law provisions
- Agency contact information
Where to Obtain Posters:
- Federal poster: Download free from U.S. Department of Labor
- Tennessee poster: Download free from Tennessee Department of Labor and Workforce Development
- Languages available: English and Spanish versions available for both federal and state posters
Posting Locations: Notices must be posted in conspicuous locations where employees can readily see them, typically near time clocks, in break rooms, or other prominent workplace locations where employee notices are customarily posted.
Compliance: Failure to display required posters may result in citations and penalties during workplace investigations. Employers must update posters when wage rates or posting requirements change.
Frequently Asked Questions: Minimum Wage in Tennessee 2026
What is the minimum wage in Tennessee in 2026?
The minimum wage in Tennessee is $7.25 per hour, matching the federal minimum wage. Tennessee does not have an independent state minimum wage rate and instead adopts the federal rate through Tennessee Code § 50-2-114.
When is the next minimum wage increase in Tennessee?
No minimum wage increases are currently scheduled in Tennessee. The rate will remain $7.25 per hour unless changed by federal legislation or unless Tennessee enacts new state legislation establishing a higher rate. The federal minimum wage has not increased since July 24, 2009.
Does Tennessee allow tip credit?
Yes, Tennessee permits employers to pay tipped employees a cash wage of $2.13 per hour, with up to $5.12 in tip credit, provided total compensation reaches $7.25 per hour. Tennessee follows federal FLSA provisions for tipped employees.
Are there different minimum wages in different cities in Tennessee?
No, Tennessee maintains a uniform statewide minimum wage of $7.25 per hour. Under Tennessee Code § 50-2-112, local governments are prohibited from enacting minimum wages exceeding the federal or state rate. No Tennessee city or county may establish a higher local minimum wage.
Who is exempt from minimum wage in Tennessee?
Common exemptions from Tennessee minimum wage include executive, administrative, and professional employees meeting salary and duties tests (currently $684 per week minimum salary under federal standards), outside sales employees, certain agricultural workers, properly classified independent contractors, and specific seasonal amusement establishment employees. Youth workers under 20 may be paid $4.25 per hour for their first 90 days of employment.
What happens if an employer pays below minimum wage in Tennessee?
Employers who pay below minimum wage face back wage liability for unpaid wages, liquidated damages equal to unpaid amounts under federal law, civil penalties for willful or repeated violations, and potential criminal prosecution under Tennessee law as a Class B misdemeanor. Employees can file complaints with the Tennessee Department of Labor and Workforce Development or the U.S. Department of Labor to recover unpaid wages.
Do small businesses have to pay minimum wage in Tennessee?
Yes, all employers in Tennessee must pay minimum wage regardless of business size. Even businesses with one employee must comply with the $7.25 hourly rate if covered by Tennessee law or the FLSA. The federal FLSA exempts only businesses with annual gross sales below $500,000 and not engaged in interstate commerce, but Tennessee Code § 50-2-114 requires payment of the federal minimum wage even for employers not covered by the FLSA.
Is Tennessee’s minimum wage higher than the federal minimum?
No, Tennessee’s minimum wage equals the federal minimum wage of $7.25 per hour. Tennessee does not have an independent higher state rate. Tennessee Code § 50-2-114 requires employers to pay at least the federal minimum, making state and federal requirements identical.
How often does Tennessee increase its minimum wage?
Tennessee does not have a mechanism for regular minimum wage increases. The state’s requirement to pay the federal minimum wage means Tennessee’s rate only changes when Congress raises the federal minimum wage. Tennessee has no automatic cost-of-living adjustment or scheduled increase formula. Any change would require federal legislation or new Tennessee state law establishing an independent higher rate.
Can employers pay less than minimum wage during training?
Tennessee follows federal law for training wages. Employers may pay employees under 20 years of age $4.25 per hour during their first 90 consecutive calendar days of employment. After 90 days or when the employee turns 20, whichever comes first, employers must pay the full minimum wage. There is no general training wage provision for workers 20 and older.
How to file a minimum wage complaint in Tennessee
Employees who believe they have not received proper minimum wage compensation may file a wage complaint with the Tennessee Department of Labor and Workforce Development Labor Standards Unit. Filing methods include:
- Online portal: File Wage Complaint Form
- Mail: Submit completed Statement of Wage Claim Form to assigned inspector listed on the form
- Federal complaints: Contact U.S. Department of Labor at 1-866-4-US-WAGE (1-866-487-9243) or www.dol.gov/whd
The Tennessee Department of Labor and Workforce Development will investigate the complaint and may recover unpaid wages on behalf of the employee. Tennessee law and federal law both prohibit employer retaliation against workers who file wage complaints or participate in investigations.
Do remote workers in Tennessee get the Tennessee minimum wage?
Generally, the minimum wage of the jurisdiction where the employee physically performs work applies. Remote workers located in Tennessee are typically entitled to Tennessee’s minimum wage of $7.25 per hour (or higher if the employer’s state has a higher rate), even if their employer is based in another state. Employers should verify which state’s labor laws apply to remote workers based on work location.
Information Verification Log
All information on this page has been compiled from official government sources and verified for accuracy as of the dates below.
| Information Verification Log | ||
|---|---|---|
| Source | Last Verified | Full URL |
| Tennessee Code § 50-2-114 | February 4, 2026 | https://www.capitol.tn.gov/Bills/112/Bill/SB0550.pdf |
| Tennessee Code § 50-2-112 (Local Preemption) | February 4, 2026 | https://law.justia.com/codes/tennessee/title-50/chapter-2/part-1/section-50-2-112/ |
| Tennessee Code § 50-2-103 (Wage Regulations) | February 4, 2026 | https://www.tn.gov/workforce/employees/labor-laws/labor-laws-redirect/wages-breaks.html |
| Tennessee Department of Labor and Workforce Development | February 4, 2026 | https://www.tn.gov/workforce.html |
| Tennessee Labor Standards Unit | February 4, 2026 | https://www.tn.gov/workforce/employees/labor-laws/labor-laws-redirect/wages-breaks/wcf.html |
| Tennessee Required Posters | February 4, 2026 | https://www.tn.gov/workforce/.../required-posters.html |
| Fair Labor Standards Act (FLSA) | February 4, 2026 | https://www.dol.gov/agencies/whd/flsa |
| U.S. Department of Labor – Minimum Wage | February 4, 2026 | https://www.dol.gov/agencies/whd/minimum-wage |
| FLSA Tipped Employee Provisions | February 4, 2026 | https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa |