🇺🇸 TENNESSEE STATE LAW – 2026 UPDATE

Tennessee Remote Work Laws 2026

⚠️Informational only — not legal or tax advice.

Last Updated: December 2025
Applicable Period: 2026 tax year and current employment regulations
Key Characteristic: Employers with remote workers physically located in Tennessee

Tennessee remote work laws and employment regulations guide

Table of Contents

Click any item below to jump to the relevant section

Overview

Tennessee is generally considered a business-friendly state with relatively minimal state-level employment regulation compared to many other states. According to official state sources, Tennessee has adopted a regulatory approach that often defers to federal standards while maintaining certain state-specific requirements.

General Characteristics (Information as of December 2025):

  • State minimum wage: Tennessee does not have a state minimum wage law; federal minimum wage of $7.25/hour generally applies under the Fair Labor Standards Act (FLSA)
  • Paid sick leave: Not mandated by state law for private employers
  • State income tax: No state income tax on wages or salaries
  • Meal/rest breaks: Meal breaks generally required for employees working 6+ consecutive hours (with certain exceptions); rest breaks not mandated by state law
  • Overtime rules: Generally follows federal FLSA standards
  • Workers’ compensation: Generally required for employers with 5 or more employees (1 or more for construction/mining industries)

Note: These are general starting points only. Specific applicability depends on many factors including employer size, industry, employee classification, and individual circumstances. Consult official sources and legal counsel for guidance on specific situations.

Source: Tennessee Department of Labor & Workforce Development – https://www.tn.gov/workforce.html

⚠️ Important Context: Tennessee operates under an “at-will” employment doctrine, meaning employment relationships may generally be terminated by either party at any time for any legal reason, unless modified by contract or covered by specific legal protections. This general principle does not affect specific statutory protections that may apply in certain circumstances. For guidance on specific employment situations, consult a licensed attorney.

Official State Agency Information

The Tennessee Department of Labor & Workforce Development (TDLWD) administers employment laws in Tennessee. The Department includes several divisions responsible for different aspects of employment regulation.

Contact Information:

  • Main Website: https://www.tn.gov/workforce
  • Phone: (844) 224-5818
  • Address: 220 French Landing Drive, Nashville, TN 37243
  • Email Support: Available through website contact forms
  • Languages: English (primary); additional assistance may be available

Key Divisions:

  • Division of Workers’ Compensation: Administers workers’ compensation law
  • Division of Employment Security: Administers unemployment insurance
  • Tennessee Occupational Safety & Health Administration (TOSHA): Workplace safety
  • Division of Workplace Regulations & Compliance: Various labor standards

Note: This agency can provide official interpretations of state law and general guidance. For legal advice on how laws apply to your specific situation, consult a licensed attorney in Tennessee.

Major State Employment Statutes

The following statutes are commonly cited in employment matters. This is general information only and does not constitute legal interpretation. Employers and workers should consult the full text of statutes and seek professional guidance for specific applications.

1. Tennessee Wage Regulation Act

Statutory Citation: Tenn. Code Ann. § 50-2-101 et seq.
Official Source: https://www.tn.gov/workforce/employees/labor-laws/labor-laws-redirect/wages-breaks.html

General Provisions (as stated in the statute):

According to Tennessee Department of Labor & Workforce Development guidance, this law generally addresses:

  • Payment frequency: Wages or compensation of employees in private employment generally must be due and payable at least once per month
  • Final paychecks: Employees who leave or are discharged generally must be paid all wages earned no later than the next regular payday following separation, or 21 days thereafter, whichever occurs last
  • Wage deductions: Deductions from wages are generally limited to those required by law (such as taxes) and those authorized by the employee in writing
  • Posting requirements: Employers may be required to post certain wage and hour information

Application to Remote Work: These provisions generally apply based on the employment relationship and where work is performed. Specific applicability depends on multiple factors. Consult Tennessee Department of Labor & Workforce Development or legal counsel for guidance.

Source: Tennessee Code Ann. § 50-2-103; Tennessee Department of Labor & Workforce Development

2. Tennessee Meal Break Law

Statutory Citation: Tenn. Code Ann. § 50-2-103(h)
Effective Date: Various amendments through 2012 Official Source: https://www.tn.gov/workforce/employees/labor-laws/labor-laws-redirect/wages-breaks.html

General Overview:

According to the Tennessee Department of Labor, this law generally requires employers to provide a 30-minute unpaid meal or rest period to employees scheduled to work six consecutive hours or more.

General Framework (as described by Tennessee DOL):

  • Duration: Generally 30 minutes, unpaid
  • Trigger: Typically applies when employee is scheduled for 6+ consecutive hours
  • Timing: Break generally may not be scheduled during or before the first hour of scheduled shift
  • Exceptions: May not apply in workplace environments that by their nature provide ample opportunity for employees to take appropriate breaks

Waiver for Food/Beverage Service Workers:

The statute provides that employees principally employed in the service of food or beverages to customers and who receive tips may voluntarily waive their meal break right through written request, if the employer consents.

Note: Actual requirements depend on specific circumstances including employer size (generally applies to employers with 5+ employees), industry, and work conditions. Employers should consult official agency guidance and legal counsel for compliance requirements.

Source: Tenn. Code Ann. § 50-2-103(h); Tennessee Department of Labor & Workforce Development

3. Tennessee Workers’ Compensation Law

Statutory Citation: Tenn. Code Ann. § 50-6-101 et seq.
Administering Agency: Bureau of Workers’ Compensation, Tennessee Department of Labor & Workforce Development Official Source: https://www.tn.gov/workforce/divisions/workerscompensation.html

General Provisions:

According to Tennessee statutes and Bureau of Workers’ Compensation guidance, this law generally:

  • Coverage requirements: Generally requires employers with 5 or more full-time or part-time employees to carry workers’ compensation insurance; construction and mining industries generally required to provide coverage with 1 or more employees
  • Benefits framework: Provides medical benefits and wage replacement for employees who suffer work-related injuries or occupational diseases
  • Employer obligations: Covered employers generally must secure workers’ compensation coverage through insurance or self-insurance
  • Employee protections: Creates a statutory framework for compensating work-related injuries on a no-fault basis

Application to Remote Work: Workers’ compensation coverage questions for remote workers can involve complex factual determinations about whether injuries “arise out of and in the course of employment.” See Workers’ Compensation section of this guide for more detailed information.

Note: Coverage determinations are fact-specific and should be evaluated by the Bureau of Workers’ Compensation or legal counsel familiar with Tennessee workers’ compensation law.

Source: Tenn. Code Ann. § 50-6-101 et seq.; Tennessee Bureau of Workers’ Compensation

4. Tennessee Employment Security Law (Unemployment Insurance)

Statutory Citation: Tenn. Code Ann. § 50-7-101 et seq.
Administering Agency: Division of Employment Security, Tennessee Department of Labor & Workforce Development Official Source: https://www.tn.gov/workforce/divisions/employmentsecurity.html

General Purpose:

This law establishes Tennessee’s unemployment insurance program, which provides temporary financial assistance to eligible workers who are unemployed through no fault of their own.

Key Elements (as described in official guidance):

  • Employer contributions: Generally requires covered employers to pay unemployment insurance taxes
  • Employee eligibility: Provides benefits to eligible unemployed workers meeting certain work history and availability requirements
  • Benefit duration: Maximum of 12-20 weeks depending on state unemployment rate
  • Worker classification: Uses specific tests to determine employee vs. independent contractor status (see Classification section)

Source: Tennessee Division of Employment Security – https://www.tn.gov/workforce/divisions/employmentsecurity.html

5. Tennessee Occupational Safety and Health Act (TOSHA)

Statutory Citation: Tenn. Code Ann. § 50-3-101 et seq.
Administering Agency: Tennessee Occupational Safety & Health Administration (TOSHA) Official Source: https://www.tn.gov/workforce/divisions/tosha.html

General Framework:

According to TOSHA, this law generally requires employers to:

  • Provide employees with a workplace free from recognized hazards that may cause serious harm
  • Comply with applicable safety and health standards
  • Maintain records of work-related injuries and illnesses
  • Post required safety notices

Application to Remote Work: Safety obligations may extend to remote work environments in certain circumstances. Specific requirements depend on the nature of work, hazards present, and other factors. Consult TOSHA or safety professionals for guidance.

Source: Tennessee Occupational Safety & Health Administration

6. Tennessee Human Rights Act

Statutory Citation: Tenn. Code Ann. § 4-21-101 et seq.
Administering Agency: Tennessee Human Rights Commission Official Source: https://www.tn.gov/humanrights.html

General Purpose:

This law generally prohibits employment discrimination on the basis of certain protected characteristics.

Protected Categories (as stated in the statute):

  • Race
  • Creed
  • Color
  • Religion
  • Sex (including pregnancy)
  • Age (40 and over)
  • National origin
  • Disability

Coverage: Generally applies to employers with 8 or more employees for most provisions; 15 or more for disability discrimination

Note: Federal anti-discrimination laws may also apply and may have different thresholds. See Anti-Discrimination section for more information. Consult legal counsel for guidance on discrimination compliance.

Source: Tenn. Code Ann. § 4-21-101 et seq.; Tennessee Human Rights Commission

Additional Applicable Federal Laws

Remote workers in Tennessee may also be subject to various federal employment laws, including but not limited to:

  • Fair Labor Standards Act (FLSA): Minimum wage, overtime, recordkeeping
  • Family and Medical Leave Act (FMLA): Unpaid leave for eligible employees
  • Americans with Disabilities Act (ADA): Disability discrimination and accommodation
  • Title VII of the Civil Rights Act: Employment discrimination
  • Age Discrimination in Employment Act (ADEA): Age discrimination
  • Occupational Safety and Health Act (OSHA): Workplace safety (some employers may be covered by federal OSHA rather than state TOSHA)

Note: Federal law applicability depends on various factors including employer size, nature of business, and employee status. Consult the U.S. Department of Labor and legal counsel for federal compliance requirements.

Employee Classification Standards in Tennessee

Tennessee’s 20-Factor Classification Test

Effective Date: January 1, 2020
Statutory Authority: Tenn. Code Ann. § 50-6-102(13); Tenn. Code Ann. § 50-7-207
Official Guidance: Tennessee Department of Labor & Workforce Development
Source: https://www.tn.gov/content/dam/tn/workforce/documents/employers/EmployeeorIndependentContractor.pdf

Overview of Tennessee’s Classification Framework

According to Tennessee Department of Labor & Workforce Development, Tennessee adopted a 20-factor test effective January 1, 2020, for determining whether a worker is an employee or an independent contractor. This test applies to:

  • Workers’ compensation coverage determinations
  • Unemployment insurance purposes
  • State employment law applications

The 20-factor test is based on the Internal Revenue Service (IRS) common law test and represents a shift from Tennessee’s previous “ABC test.” According to official guidance, this change aligned Tennessee law with federal standards.

Critical Note: No single factor is determinative of employment status. The test examines the totality of circumstances in the working relationship. There is no presumption that an individual performing services is an employee under this test.

The 20 Factors (As Described by Tennessee Department of Labor & Workforce Development)

The following factors are examined when evaluating worker classification. This is a simplified summary based on official guidance – actual legal application is complex and fact-specific.

Factor 1: Instructions

General Description: According to Tennessee guidance, this factor examines the level to which the worker is required to comply with instructions about when, where, and how work is performed.

General Observations from Official Sources:

  • A worker who is required to comply with detailed instructions about when, where, and how to perform services may share characteristics commonly associated with employee relationships
  • Independent contractors typically have more freedom in determining methods and means of achieving results

This is not a determination. Actual classification requires analysis of all 20 factors and should be evaluated by Tennessee Department of Labor & Workforce Development or legal counsel.

Factor 2: Training

General Description: This factor considers whether training is provided by the person or persons for whom services are performed.

General Observations from Official Sources:

  • If training is provided, this may indicate that the employer prefers work to be performed in a particular manner, which could be associated with employee relationships
  • Independent contractors typically use their own methods and do not require training from the hiring entity

This is not a determination.

Factor 3: Integration

General Description: This factor examines whether the worker’s services are integrated into the business operations.

General Observations from Official Sources:

  • If the worker’s services are integrated into the business operations, this may indicate that the services are subject to direction and control
  • Independent contractors typically provide services that are ancillary or supplemental to the core business

This is not a determination.

Factor 4: Services Rendered Personally

General Description: This factor considers whether the worker must render services personally.

General Observations from Official Sources:

  • If services must be performed personally, this may indicate that the employer is interested in the methods as well as the results
  • Independent contractors typically can hire, supervise, and pay assistants

This is not a determination.

Factor 5: Hiring, Supervising, and Paying Assistants

General Description: This factor examines who hires, supervises, and pays any assistants.

General Observations from Official Sources:

  • If the hiring entity provides and pays assistants, this may indicate an employee relationship
  • Independent contractors typically hire, supervise, and pay their own assistants

This is not a determination.

Factor 6: Continuing Relationship

General Description: This factor considers whether there is a continuing relationship between the worker and the hiring entity.

General Observations from Official Sources:

  • A continuing relationship may exist where work is performed at frequently recurring intervals, even if irregular
  • Independent contractors typically work on specific projects with defined beginning and end dates

This is not a determination.

Factor 7: Set Hours of Work

General Description: This factor examines whether the hiring entity establishes set hours of work.

General Observations from Official Sources:

  • Set hours of work established by the hiring entity may indicate control over the worker
  • Independent contractors typically are free to work when they choose

This is not a determination.

Factor 8: Full Time Required

General Description: This factor considers whether the worker must devote substantially full time to the business.

General Observations from Official Sources:

  • If full-time devotion is required, this may implicitly restrict the worker from other gainful work, suggesting employee status
  • Independent contractors typically are free to work for whom they choose

This is not a determination.

Factor 9: Doing Work on Employer’s Premises

General Description: This factor examines where work is performed.

General Observations from Official Sources:

  • Work performed on the hiring entity’s premises may suggest control, especially if the work could be performed elsewhere
  • Independent contractors typically have their own workspace or work at various locations

This is not a determination.

Factor 10: Order or Sequence Set

General Description: This factor considers whether the hiring entity requires work to be performed in a particular order or sequence.

General Observations from Official Sources:

  • If work must be performed in a specific sequence set by the hiring entity, this may indicate control
  • Independent contractors typically determine their own work sequence

This is not a determination.

Factor 11: Oral or Written Reports

General Description: This factor examines whether the worker must submit regular reports.

General Observations from Official Sources:

  • Requirements to submit regular or written reports may indicate a degree of control
  • Independent contractors typically provide only final deliverables or project completion reports

This is not a determination.

Factor 12: Payment by Hour, Week, Month

General Description: This factor considers the method of payment.

General Observations from Official Sources:

  • Payment by hour, week, or month generally may be associated with employee relationships, provided this is not just a convenient way of paying a lump sum for a job
  • Payment by the job or on straight commission generally may indicate independent contractor status

This is not a determination.

Factor 13: Payment of Business and/or Traveling Expenses

General Description: This factor examines who pays business and traveling expenses.

General Observations from Official Sources:

  • If the hiring entity ordinarily pays the worker’s business or traveling expenses, this may indicate employee status
  • Independent contractors typically bear their own business expenses

This is not a determination.

Factor 14: Furnishing of Tools and Materials

General Description: This factor considers who furnishes tools, materials, and equipment.

General Observations from Official Sources:

  • If the hiring entity furnishes significant tools, materials, and equipment, this may indicate employee status
  • Independent contractors typically provide their own tools and materials

This is not a determination.

Factor 15: Significant Investment

General Description: This factor examines whether the worker has made significant investment in facilities.

General Observations from Official Sources:

  • Investment in facilities not typically maintained by employees (such as maintaining an office rented at fair value) may indicate independent contractor status
  • Lack of investment in facilities may indicate dependence on the hiring entity

This is not a determination.

Factor 16: Realization of Profit or Loss

General Description: This factor considers whether the worker can realize a profit or suffer a loss.

General Observations from Official Sources:

  • If the worker is subject to real risk of economic loss due to significant investments or liability for expenses, this may indicate independent contractor status
  • Employees typically do not risk economic loss beyond time invested

This is not a determination.

Factor 17: Working for More Than One Firm at a Time

General Description: This factor examines whether the worker provides services to multiple entities simultaneously.

General Observations from Official Sources:

  • Working for multiple firms simultaneously may indicate independent contractor status
  • This factor alone is not determinative as some employees also work multiple jobs

This is not a determination.

Factor 18: Making Services Available to General Public

General Description: This factor considers whether the worker makes services available to the general public.

General Observations from Official Sources:

  • Making services available to the general public on a regular and consistent basis may indicate independent contractor status
  • Employees typically provide services exclusively to their employer

This is not a determination.

Factor 19: Right to Discharge

General Description: This factor examines whether the hiring entity has the right to discharge the worker.

General Observations from Official Sources:

  • The right to discharge at will may indicate employee status through the employer’s control via threat of dismissal
  • Independent contractors cannot typically be fired as long as they produce results meeting contract specifications

This is not a determination.

Factor 20: Right to Terminate

General Description: This factor considers whether the worker can terminate the relationship without liability.

General Observations from Official Sources:

  • If the worker can end the relationship at any time without incurring liability, this may indicate employee status
  • Independent contractors typically have contractual obligations and may incur liability for early termination

This is not a determination.

Illustrative Scenarios for Remote Worker

Every classification determination is unique and depends on complete factual circumstances and official determination by Tennessee Department of Labor & Workforce Development, the IRS, or relevant authority.

Scenario Category: Software Developer Working Remotely

Example Situation: A software developer works from home for a Tennessee-based company. The company provides a laptop, sets work hours from 9 AM to 5 PM, requires daily stand-up meetings, provides specific coding standards and training, pays an hourly wage biweekly, and reimburses internet expenses. The developer works exclusively for this company and does not advertise services to others.

General Observations (Not a Determination):

This scenario may share some characteristics with situations that have been analyzed as employee relationships, such as:

  • Company provides equipment (Factor 14)
  • Set work hours (Factor 7)
  • Regular meetings suggesting ongoing oversight (Factor 6, 11)
  • Training and specific standards (Factors 2, 1)
  • Hourly payment (Factor 12)
  • Expense reimbursement (Factor 13)
  • Exclusivity (Factors 17, 18)

However, actual classification depends on complete analysis of all 20 factors, including:

  • Degree of actual instruction vs. general expectations
  • Level of independence in technical decisions
  • Investment in facilities (home office setup)
  • Other specific circumstances not described here

This is not a coverage determination. Consult Tennessee Department of Labor & Workforce Development or legal counsel familiar with Tennessee employment law for actual classification analysis.

Scenario Category: Freelance Writer/Consultant

Example Situation: A writer provides content creation services for multiple clients from home. The writer sets their own hours, uses their own computer and software, charges by the project, finds clients through their own marketing website, determines article structure and approach (subject to client approval of final product), pays for their own professional development, can accept or decline projects, and works with multiple companies simultaneously.

General Observations (Not a Determination):

This scenario may share some characteristics with situations that have been analyzed as independent contractor relationships, such as:

  • Multiple simultaneous clients (Factor 17)
  • Services available to general public (Factor 18)
  • Project-based payment (Factor 12)
  • Own tools and materials (Factor 14)
  • Control over work schedule (Factor 7)
  • Investment in business infrastructure (Factor 15)
  • Can decline work (Factors 19, 20)

However, actual classification depends on complete analysis of all 20 factors, including:

  • Specific terms of agreements with each client
  • Degree of editorial control by clients
  • Whether any single client becomes predominant source of income
  • Other specific circumstances not described here

This is not a coverage determination. Consult Tennessee Department of Labor & Workforce Development or legal counsel for actual classification analysis.

Remote Work Classification Considerations

For remote workers, classification analysis may involve additional complexities:

  • Physical work location vs. business location: Where the worker performs duties may differ from where the hiring entity is located
  • Nature of work relationship in virtual environment: Control and oversight may be exercised differently in remote settings
  • Level of independence in remote setting: Remote work may involve either more or less direct supervision depending on circumstances
  • Technology and equipment: Provision of computers, software, VPN access, etc. may be relevant factors

These considerations do not change the 20-factor test but may affect how factors are applied.

Classification of remote workers should be reviewed with legal counsel familiar with Tennessee law and your specific circumstances.

Potential Consequences of Misclassification

According to Tennessee Department of Labor & Workforce Development and other official sources, misclassification may result in various consequences. The following is general information only and not an exhaustive list:

For Employers (Potential Consequences May Include):

  • Back payment of unemployment insurance taxes, penalties, and interest
  • Workers’ compensation premium adjustments and penalties
  • Wage and hour claim exposure for unpaid minimum wage or overtime
  • Tax implications at state and federal levels (payroll taxes)
  • Penalties under various statutes
  • Potential employee benefit obligations

For Workers (Potential Impact May Include):

  • May affect access to unemployment benefits
  • May affect workers’ compensation coverage eligibility
  • May affect wage and hour protections
  • May affect leave benefit eligibility
  • Tax filing and payment obligations differ between employees and contractors

Note: Specific consequences depend on many factors including severity of misclassification, number of workers affected, duration, intent, and other circumstances. This is general information only and not legal advice.

Source: Tennessee Department of Labor & Workforce Development; Internal Revenue Service

How to Seek Classification Guidance

Classification questions should be addressed through:

  • Tennessee Department of Labor & Workforce Development
    • Phone: (844) 224-5818
    • Website: https://www.tn.gov/workforce
    • Form for unemployment insurance determinations available through Division of Employment Security
  • Internal Revenue Service (IRS)
    • Form SS-8 for federal tax classification determinations
    • Because Tennessee uses the same 20-factor test as IRS, federal determinations may provide guidance for state purposes
    • Phone: (800) 829-1040
    • Website: https://www.irs.gov
  • Employment Attorney Licensed in Tennessee
  • Tax Professional
    • CPA or enrolled agent familiar with Tennessee and federal employment tax law

⚠️ CRITICAL REMINDER: Worker classification is a legal and tax determination that should be made with professional guidance. The information above is for general educational purposes and does not constitute a classification analysis or legal advice.

Giving a worker a Form 1099 does NOT make them an independent contractor. Classification depends on the actual working relationship, not tax forms issued.

Minimum Wage Information for Tennessee

Tennessee’s Minimum Wage Framework

According to available information from the U.S. Department of Labor and Tennessee Department of Labor & Workforce Development, Tennessee does not have a state minimum wage law.

What this generally means:

  • Tennessee employers are generally subject to the federal Fair Labor Standards Act (FLSA) minimum wage requirements
  • The federal minimum wage as of December 2025 is $7.25 per hour
  • According to Tenn. Code Ann. § 50-2-114, Tennessee employers generally must pay at least the federal minimum wage even if federal law exemptions might otherwise apply

Source: U.S. Department of Labor – https://www.dol.gov/agencies/whd/minimum-wage/state
Tennessee Code Annotated § 50-2-114

Current Federal Minimum Wage Rates (As of December 2025)

Effective Date Standard Rate Notes
July 24, 2009 $7.25/hour Current federal minimum wage
No state rate N/A Tennessee has no separate state minimum wage

Source: Fair Labor Standards Act; U.S. Department of Labor Wage and Hour Division

Note: Various legislative proposals have been introduced in Tennessee to establish a state minimum wage (including proposals for $12, $15, and $20 per hour), but as of December 2025, none have been enacted into law. Always verify current law with official sources.

Application to Remote Workers

According to general legal principles and U.S. Department of Labor guidance:

  • Minimum wage typically applies based on where work is physically performed
  • A worker performing work from a location in Tennessee would generally be subject to federal minimum wage requirements
  • Employer location is generally not the determining factor for minimum wage applicability

However, specific situations may vary. Questions about minimum wage applicability should be directed to:

  • Tennessee Department of Labor & Workforce Development: (844) 224-5818
  • U.S. Department of Labor Wage and Hour Division: (866) 487-9243
  • Legal counsel for situation-specific guidance

Tipped Employees

According to federal law (which generally governs in Tennessee):

Tipped Minimum Wage:

  • Federal law allows employers to pay tipped employees a direct cash wage of $2.13 per hour
  • The employer must ensure that direct wages plus tips equal at least the federal minimum wage ($7.25)
  • If tips are insufficient to reach minimum wage, the employer must make up the difference

Tip Credit Requirements:

  • Employer must inform employee of tip credit provisions
  • Employee must retain all tips (except valid tip pooling arrangements)
  • Employee must regularly receive more than $30 per month in tips

Source: Fair Labor Standards Act; 29 U.S.C. § 203(m); U.S. Department of Labor
Guidance: https://www.dol.gov/agencies/whd/fact-sheets/15-flsa-tipped-employees

Note: Tip credit rules are complex and fact-specific. Consult U.S. Department of Labor or legal counsel for compliance guidance.

Youth Minimum Wage

According to federal law:

  • Employers may pay employees under age 20 a youth minimum wage of $4.25 per hour during the first 90 consecutive calendar days of employment
  • After 90 days or when employee turns 20 (whichever comes first), full minimum wage applies
  • Employers cannot displace other workers to hire youth at lower wage

Source: Fair Labor Standards Act; U.S. Department of Labor

Comparison with Neighboring States (For Reference Only)

State 2025 Minimum Wage Notes
Tennessee $7.25 (federal) No state minimum wage
Arkansas $11.00 State rate above federal
Missouri $13.75 State rate above federal
Kentucky $7.25 (federal) No state minimum wage
Virginia $13.50 State rate above federal
Mississippi $7.25 (federal) No state minimum wage
Alabama $7.25 (federal) No state minimum wage
Georgia $7.25 (federal) State has $5.15 rate but FLSA generally applies

This comparison is for general reference only. Each state’s laws apply based on where work is performed. Rates are as of December 2025 and may change.

Local Minimum Wages

As of December 2025, Tennessee does not appear to have local jurisdictions with minimum wages above the federal rate. However, laws can change.

Verify: Employers operating in multiple Tennessee locations should verify whether any local ordinances have been enacted. Consult local government offices or legal counsel.

Resources for Current Minimum Wage Information

⚠️ CRITICAL REMINDER: Minimum wage compliance depends on many factors including employer coverage under FLSA, employee classification, exemptions, and local ordinances. This information is general background only. Consult official sources and legal counsel for specific compliance obligations.

Overtime and Break Requirements in Tennessee

A. Overtime Standards

Governing Framework: Tennessee does not have state overtime laws separate from federal law. The federal Fair Labor Standards Act (FLSA) generally governs overtime requirements in Tennessee.

Statutory Authority: Fair Labor Standards Act, 29 U.S.C. § 207
Official Source: U.S. Department of Labor – https://www.dol.gov/agencies/whd/overtime

General Overtime Threshold (as stated in federal law)

According to U.S. Department of Labor guidance:

  • Standard threshold: Generally triggered after 40 hours worked in a workweek
  • Rate generally required: 1.5 times the employee’s regular rate of pay
  • No daily overtime: Federal law (and Tennessee) generally does not require overtime for work beyond a certain number of hours in a single day

Application to Remote Workers: Overtime regulations typically apply based on the nature of the work and employment relationship, not work location. Remote workers performing non-exempt work would generally be subject to the same overtime requirements as on-site workers.

However, specific applicability depends on exemption status, which requires detailed analysis. See Exemptions section below.

Calculating Compensable Time for Remote Workers

According to federal guidance, “hours worked” for overtime calculation purposes may include:

  • Time actually performing work duties
  • Required meetings and training
  • Time waiting to perform work (in some circumstances)
  • Travel time (in certain situations)
  • Other activities depending on specific facts

⚠️ Complex Issue for Remote Workers:

Determining compensable time for remote workers can involve additional considerations:

  • After-hours email or message responses
  • On-call time at home
  • Time spent in virtual meetings outside regular hours
  • Work performed outside scheduled hours
  • Other activities depending on circumstances

These determinations are fact-specific. According to U.S. Department of Labor guidance, compensable work time is time that the employer “suffers or permits” the employee to work.

Employers should consult wage-hour counsel for guidance on:

  • Time tracking systems for remote workers
  • Policies regarding after-hours work
  • On-call policies
  • Compensability of specific activities

Source: 29 C.F.R. § 785; U.S. Department of Labor Fact Sheet #22

Overtime Exemptions

Tennessee recognizes federal exemptions from overtime requirements under the Fair Labor Standards Act. Common exemptions include:

Executive, Administrative, and Professional (EAP) Exemptions

To potentially qualify for these “white collar” exemptions, employees generally must meet tests related to:

1. Salary Basis Test:

  • Paid a predetermined salary not subject to reduction based on quality or quantity of work performed
  • With limited exceptions, must receive full salary for any week in which work is performed

2. Salary Level Test:

  • As of December 2025, federal minimum salary threshold is generally $844 per week ($43,888 annually) (Note: This threshold has been subject to legal challenges and may change – verify current requirement)
  • This threshold is based on federal regulations and may be updated

3. Duties Test:

  • Must perform exempt-level duties as defined in regulations
  • Job title alone does not determine exemption status

Source: 29 C.F.R. § 541; U.S. Department of Labor
Note: Salary thresholds have changed in recent years and may be subject to further changes. Always verify current requirements.

Executive Exemption – General Duties Framework:

According to U.S. Department of Labor regulations, to qualify for executive exemption, an employee’s primary duty must generally be:

  • Managing the enterprise or a recognized department/subdivision
  • Customarily and regularly directing the work of two or more employees
  • Authority to hire/fire or recommendations given particular weight

This is a simplified summary. Actual duties tests are detailed and fact-specific.

Administrative Exemption – General Duties Framework:

According to regulations, to qualify for administrative exemption, an employee’s primary duty must generally be:

  • Performance of office or non-manual work directly related to management or general business operations
  • Includes exercise of discretion and independent judgment on significant matters

This is a simplified summary. Actual duties tests are detailed and fact-specific.

Professional Exemption – General Duties Framework:

According to regulations, professional exemptions may include:

  • Learned professionals: Work requiring advanced knowledge in a field of science or learning, typically acquired through prolonged specialized instruction
  • Creative professionals: Work requiring invention, imagination, originality, or talent in a recognized artistic or creative field

This is a simplified summary. Actual duties tests are detailed and fact-specific.

⚠️ Important:

  • Job title alone does not determine exemption status
  • Meeting the salary threshold alone is insufficient – all three tests must be satisfied
  • Exemptions are narrowly interpreted
  • Classification errors can result in significant back pay liability

Consult U.S. Department of Labor guidance and legal counsel for classification decisions.

Source: 29 C.F.R. § 541; U.S. Department of Labor Fact Sheet #17A

Computer Professional Exemption

Salary/Hourly Requirements (as of December 2025):

  • May be paid on salary or hourly basis
  • If hourly: Generally must be paid at least $27.63 per hour
  • If salary: Must meet standard salary level ($844/week)
  • Plus must meet computer professional duties test

General Duties Framework: According to regulations, must be employed as computer systems analyst, programmer, software engineer, or similarly skilled worker, and primary duty must involve:

  • Application of systems analysis techniques and procedures
  • Design, development, documentation, analysis, creation, testing, or modification of computer systems or programs
  • Design, documentation, testing, creation, or modification of computer programs related to machine operating systems

Note: This exemption does not include employees engaged in manufacture or repair of computer hardware.

Source: 29 C.F.R. § 541.400; U.S. Department of Labor Fact Sheet #17E

Other Common Exemptions

Other exemptions may include (not exhaustive):

  • Outside sales employees
  • Certain commissioned sales employees
  • Highly compensated employees (meeting specific requirements)
  • Various industry-specific exemptions

Note: Exemptions are narrowly interpreted. Professional guidance strongly recommended for all exemption determinations.

Source: Fair Labor Standards Act; 29 C.F.R. Part 541

B. Meal and Rest Break Requirements

Tennessee’s Break Standards:

According to Tennessee law, meal breaks are required under certain circumstances. Rest breaks are not mandated by state law.

Statutory Authority: Tenn. Code Ann. § 50-2-103(h)
Source: Tennessee Department of Labor & Workforce Development – https://www.tn.gov/workforce/employees/labor-laws/labor-laws-redirect/wages-breaks.html

Meal Break Requirements

General Framework (as described by Tennessee Department of Labor):

  • Duration: Generally 30 minutes
  • Paid/Unpaid: Generally unpaid (if employee completely relieved of duties)
  • Trigger: Typically required for employees scheduled to work 6 or more consecutive hours
  • Timing: Generally may not be scheduled during or before the first hour of the scheduled shift
  • Coverage: Generally applies to employers with 5 or more employees

Exceptions: According to the statute, meal breaks may not be required where:

  • The nature of the business provides ample opportunity for employees to take appropriate meal breaks (such as during slow periods in food service)

Waiver for Tipped Food/Beverage Employees: Employees principally employed in the service of food or beverages to customers and who receive tips may voluntarily waive their meal break through:

  • Written request by the employee
  • Employer consent to the written request
  • Employer must post written waiver policy

Application to Remote Workers: Meal break requirements generally apply to remote workers performing non-exempt work in Tennessee. Specific compliance mechanisms for remote workers may require consultation with legal counsel.

Potential Compliance Challenges for Remote Work:

  • Verifying breaks are actually taken
  • Ensuring workers do not work during unpaid meal periods
  • Documenting compliance
  • Handling interruptions during breaks

Source: Tenn. Code Ann. § 50-2-103(h); Tennessee Department of Labor & Workforce Development

Rest Break Requirements

Tennessee Law: Tennessee does not have laws requiring employers to provide short rest breaks to adult employees.

Federal Guidance if Breaks Are Provided Voluntarily: If an employer chooses to provide short breaks (typically 5-20 minutes), federal law provides:

  • Short breaks (5-20 minutes): Generally must be counted as compensable work time and paid
  • Bona fide meal periods (30+ minutes): May be unpaid if employee is completely relieved of duties

Source: Fair Labor Standards Act; 29 C.F.R. § 785.18-19; U.S. Department of Labor

Breastfeeding Break Requirements

Federal law provides break time for nursing mothers:

Framework:

  • Employers must provide reasonable break time for employee to express breast milk for one year after child’s birth
  • Must provide a private place (not a bathroom) that is shielded from view and free from intrusion
  • Applies to non-exempt employees
  • Break time does not have to be paid unless employer provides compensated breaks and employee uses that time

Source: Fair Labor Standards Act § 7(r); 29 U.S.C. § 207(r)
Additional Information: U.S. Department of Labor – https://www.dol.gov/agencies/whd/nursing-mothers

Penalties for Break Violations

According to Tennessee guidance, failure to provide required meal breaks may result in:

  • Fines of not less than $100 and up to $500
  • Potential civil liability
  • Other consequences depending on circumstances

Source: Tennessee Department of Labor & Workforce Development

Resources for Overtime and Break Compliance

⚠️ CRITICAL REMINDER: Wage and hour compliance is highly fact-specific and technical. Violations can result in significant back pay liability, penalties, and damages. This information is for general background only. Employers should obtain professional guidance on classification, time tracking, break compliance, and overtime calculations.

Workers' Compensation Overview for Tennessee

Legal Framework

Statutory Authority: Tenn. Code Ann. § 50-6-101 et seq.
Administering Agency: Bureau of Workers’ Compensation, Tennessee Department of Labor & Workforce Development

Contact Information:

Note: The Bureau of Workers’ Compensation can provide official interpretations and assistance. For legal representation in contested cases, consult a workers’ compensation attorney.

Purpose of Tennessee Workers’ Compensation System

According to the Bureau of Workers’ Compensation, Tennessee’s workers’ compensation law is designed to:

  • Provide medical benefits and partial wage replacement to employees injured on the job
  • Create a “no-fault” system where benefits are provided regardless of fault
  • Limit employer liability to amounts specified in the statute (in exchange for mandatory coverage)
  • Facilitate injured workers’ return to health and employment

“No-Fault” System: According to Tennessee law, the general standard is that injuries must “arise out of and in the course of employment” to be compensable. Fault or negligence is generally not required.

Source: Tennessee Bureau of Workers’ Compensation – https://www.tn.gov/workforce/injuries-at-work/available-resources/redirecr-available-resources/a-beginner-s-guide-to-tn-workers–comp.html

General Coverage Requirements (As Stated in Law)

According to Tennessee statutes and Bureau of Workers’ Compensation guidance, workers’ compensation coverage is generally:

Standard Industries:

  • Generally required for employers with 5 or more full-time or part-time employees

Construction and Mining Industries:

  • Generally required for employers with 1 or more employees
  • Different rules may apply – specific guidance available from Bureau

What “Generally Required” Means: According to statute, covered employers must secure workers’ compensation insurance through:

  • Commercial insurance carrier
  • Self-insurance (if approved by Bureau)
  • Tennessee Workers’ Compensation Insurance Fund (if available)

Source: Tenn. Code Ann. § 50-6-405; Tennessee Bureau of Workers’ Compensation

⚠️ Note: Coverage determinations can be complex and fact-specific. Employee counts may be calculated based on specific rules. Employers uncertain about their obligations should consult Tennessee Bureau of Workers’ Compensation or legal counsel.

Tennessee’s Workers’ Compensation System Structure

According to Bureau of Workers’ Compensation information, Tennessee operates a system where:

  • Employers may purchase coverage from private insurance carriers
  • Employers meeting certain requirements may self-insure with Bureau approval
  • State-operated Tennessee Workers’ Compensation Insurance Fund exists to provide coverage options

Exemptions:

  • Certain business owners in construction may apply for personal exemption through the Workers’ Compensation Exemption Registry
  • Federal employees, railroad employees, and certain others may be covered by federal systems
  • Specific exemptions should be verified with Bureau

Source: Tennessee Bureau of Workers’ Compensation; Tenn. Code Ann. § 50-6-106

Remote Worker Coverage Considerations

⚠️ COMPLEX AND HIGHLY FACT-SPECIFIC: Coverage of home office injuries involves detailed factual analysis that must be conducted by the Tennessee Bureau of Workers’ Compensation. The following is general background only and not coverage advice.

General Legal Standard for Compensability

According to Tennessee case law and statutory provisions, workers’ compensation typically covers injuries that “arise out of and in the course of employment.”

What This Generally Means (According to Tennessee Courts and Bureau):

  • “Arise out of”: Generally refers to causation – the injury must have a causal connection to employment
  • “In the course of”: Generally refers to time, place, and circumstances – the injury must occur within the period of employment, at a place where employee may reasonably be, while fulfilling work duties or engaged in something incidental to employment

Application of this standard to remote workers is fact-dependent and requires case-by-case analysis.

Source: Tennessee case law; Tennessee Bureau of Workers’ Compensation guidance

Factors That May Be Considered in Remote Work Injury Analysis

According to Tennessee case law and Bureau guidance, factors that may be relevant in determining compensability of home office injuries include (non-exhaustive list):

  • Whether employee was engaged in work activity at time of injury
  • Whether injury occurred in designated work area or throughout home
  • Whether injury occurred during work hours or outside work hours
  • Whether activity was authorized, expected, or required by employer
  • Whether activity served employer’s interests or was personal in nature
  • Whether employer had knowledge of and/or approved home office arrangement
  • Whether employer exercised any control over home work environment
  • Nature and circumstances of the specific injury
  • Other facts and circumstances specific to the situation

⚠️ Important:

  • This list is not exhaustive
  • No single factor is determinative
  • Each case is evaluated on its complete factual circumstances
  • Prior cases may provide guidance but each situation is unique

Illustrative Scenarios for Remote Workers

EVERY WORKERS’ COMPENSATION CLAIM IS UNIQUE and depends on its specific facts. Coverage determinations are made by Tennessee Bureau of Workers’ Compensation based on complete information, and disputed cases may be resolved through administrative proceedings or courts.

These scenarios are purely illustrative examples to demonstrate the types of factors that may be considered. They should not be relied upon for any coverage decisions.

Scenario Category: Work-Related Activities in Home Office

Example Situation 1: An employee trips over computer cables in a designated home office while retrieving work documents from a file cabinet during regular work hours. The employer provided the computer equipment and was aware of the home office setup.

General Observations (Not a Coverage Determination):

This type of scenario may share some characteristics with situations that have been found compensable in some contexts, such as:

  • Activity was work-related (retrieving work documents)
  • Occurred in designated work area (home office)
  • During work hours
  • Equipment provided by employer
  • Employer had knowledge of work arrangement

However, compensability would depend on complete factual analysis including:

  • Specific terms of employment agreement regarding home office
  • Whether employer designated or approved the specific work area
  • Whether hazard (cables) was created by work activity or personal activity
  • Exact circumstances of how injury occurred
  • Medical documentation
  • Whether employee was performing duties or on break
  • Other specific circumstances not described here

This is not a coverage determination. Actual determination would be made by Tennessee Bureau of Workers’ Compensation based on all facts, and may be subject to appeal.

Example Situation 2: An employee develops carpal tunnel syndrome allegedly from extended computer use while performing work duties remotely over a period of months.

General Observations (Not a Coverage Determination):

Repetitive stress or cumulative trauma injuries may potentially be compensable in some circumstances under Tennessee law, but determination depends on factors such as:

  • Medical documentation establishing work-relatedness of condition
  • Evidence that condition arose primarily from employment activities
  • Temporal relationship between work activities and symptom development
  • Rule out of non-work-related contributing factors
  • Expert medical opinions on causation
  • Work history and duties
  • Other medical and factual evidence

According to Tennessee law, occupational diseases and cumulative trauma may be compensable under certain circumstances, but require specific medical and factual showings.

This is not a coverage determination. Such claims involve complex medical causation questions that must be evaluated with complete medical records and expert opinions.

Source: Tenn. Code Ann. § 50-6-301 et seq. (occupational diseases)

Scenario Category: Personal Comfort Activities at Home

Example Situation 3: An employee is injured while preparing a personal meal in the kitchen during a lunch break while working from home.

General Observations (Not a Coverage Determination):

Personal comfort activities unrelated to work duties may be less likely to be considered work-related, based on general principles, but specific facts matter:

Factors that might weigh against compensability:

  • Activity (meal preparation) appears personal in nature
  • Kitchen may not be part of designated work area
  • Lunch break typically relieves employee of work duties

However, even for personal comfort activities, specific circumstances may be relevant:

  • Whether employee was required to remain at home during break
  • Whether employee was “on call” or expected to respond to work matters
  • Specific nature of injury and how it occurred
  • Employer policies regarding breaks
  • Other specific facts

This is general background only. Not a coverage determination.

Source: Tennessee case law on personal comfort doctrine (fact-specific application)

Example Situation 4: An employee slips and falls while going down stairs in their home to answer the door for a work-related delivery during work hours.

General Observations (Not a Coverage Determination):

This scenario involves mixed personal and work-related elements. Analysis might consider:

Factors that might support compensability:

  • Activity related to work (receiving work delivery)
  • During work hours
  • Employee performing activity employer might expect or benefit from

Factors that might complicate analysis:

  • Injury occurred in personal residence outside designated work area
  • Stairs are part of personal living space
  • Question of whether employee was required to personally receive delivery

Complete factual analysis would be needed including:

  • What was being delivered and why
  • Whether employer required or requested employee to receive delivery
  • Whether employee had discretion in how to handle delivery
  • Specific circumstances of fall
  • Other relevant facts

This is not a coverage determination. Actual cases with similar fact patterns might be decided differently based on complete circumstances.

Scenario Category: Travel Between Home Work Area and Other Locations

Example Situation 5: An employee working from home is injured in a car accident while driving to attend a required in-person meeting at the employer’s office.

General Observations (Not a Coverage Determination):

Travel-related injuries involve specific rules under Tennessee workers’ compensation law. Generally:

  • Regular commuting to and from work is typically not covered (the “going and coming rule”)
  • Exceptions may exist for travel during work hours, travel at employer’s direction, travel as part of job duties, and other specific circumstances

For this scenario:

  • Travel was to required business meeting (not regular commute)
  • During work hours (employee was working from home)
  • At employer’s specific direction

However, analysis would require:

  • Understanding of employee’s regular work arrangement
  • Specifics of meeting requirement
  • Whether travel was truly part of employment or incidental
  • Other facts and circumstances

Source: Tennessee case law on going and coming rule and exceptions

This is not a coverage determination. Travel injury coverage involves detailed legal analysis of Tennessee case law and specific facts.

Benefits Generally Available Under Tennessee Law

According to Tennessee workers’ compensation statutes and Bureau guidance, benefits for compensable injuries may include:

Medical Benefits

General Framework (as stated in statute):

  • Coverage for medical treatment reasonably necessary to cure or relieve effects of work injury
  • Employee generally must treat with authorized treating physician chosen from panel
  • Employer/insurer generally responsible for payment of authorized medical treatment
  • No dollar cap on medical benefits for compensable injuries

Panel of Physicians: According to statute, employer generally must provide employee with choice of at least three physicians not associated together in practice, located reasonably close to employee’s community.

Source: Tenn. Code Ann. § 50-6-204; Bureau of Workers’ Compensation

Disability Benefits

Temporary Total Disability:

  • Available when employee is totally unable to work due to work injury
  • Generally pays two-thirds (2/3) of average weekly wage
  • Waiting period: Generally not paid for first 7 days unless disability exceeds 14 days
  • If disability exceeds 14 days, benefits generally paid from first day

Temporary Partial Disability:

  • Available when employee can perform some work but at reduced capacity
  • Formula based on wage loss

Permanent Partial Disability:

  • Available when employee has permanent impairment but can still work
  • Amount based on impairment rating and statutory formula
  • May be paid as lump sum or installments

Permanent Total Disability:

  • Available when employee is permanently unable to work
  • Ongoing benefits subject to statutory caps

Source: Tenn. Code Ann. § 50-6-207 et seq.; Bureau of Workers’ Compensation

Note: Specific benefit amounts and eligibility depend on injury circumstances, medical evidence, and statutory formulas. Consult Bureau of Workers’ Compensation or claims administrator for case-specific information.

Vocational Benefits

Tennessee offers a “Next Step Program” for injured workers:

  • Scholarship funds up to $5,000 per fiscal year for retraining
  • Available after disability benefits exhausted
  • For attendance at Tennessee College of Applied Technology, community college, or state university

Source: Tennessee Bureau of Workers’ Compensation – https://www.tn.gov/workforce/divisions/workerscompensation.html

Death Benefits

If a work-related injury results in death, benefits may be available for:

  • Surviving spouse and/or dependents
  • Burial expenses (up to statutory cap)
  • Benefit amounts based on statutory formula

Source: Tenn. Code Ann. § 50-6-210 et seq.

Reporting and Claim Process (General Framework)

According to Tennessee regulations, the general process typically involves:

For Employees:

1. Report Injury to Employer:

  • Should be reported as soon as possible
  • Tennessee statute requires notice within 15 days of accident or injury (with certain exceptions for gradual/cumulative injuries)
  • Late notice may affect claim – report promptly

2. Seek Medical Attention:

  • Choose from panel of physicians provided by employer (if panel properly provided)
  • If emergency, seek emergency care and notify employer ASAP

3. File Claim if Necessary:

  • Many claims resolve without formal filing
  • If disputes arise, employee may file petition for benefit determination with Bureau
  • Statute of limitations: Generally 1 year from date of accident (may be different for occupational diseases or other circumstances)

Source: Tenn. Code Ann. § 50-6-203, § 50-6-225; Bureau of Workers’ Compensation

⚠️ Critical: Deadlines are strictly enforced. Late reporting or filing may bar claim. When in doubt, report injuries immediately and consult Bureau or attorney about deadlines.

For Employers:

1. Report to Workers’ Compensation:

  • Report to Bureau of Workers’ Compensation if claim may exceed $1,500 in medical expenses or involves 1+ days of disability
  • First Report of Work Injury (Form C-20) must be filed within 15 days of employer’s knowledge of injury

2. Report to Insurance Carrier:

  • Immediately notify workers’ compensation insurance carrier of reported injury

3. Provide Panel of Physicians:

  • Offer employee choice of at least three physicians if proper panel not already provided

4. Begin Benefit Payments if Appropriate:

  • If liability accepted, begin disability benefit payments when due
  • Authorize medical treatment

Source: Tennessee Bureau of Workers’ Compensation; Tenn. Code Ann. § 50-6-225

⚠️ Note: Employer reporting deadlines are critical. Late reporting may result in penalties. Consult Bureau or insurance carrier for compliance guidance.

Uninsured Employers

If an employer that is required to carry workers’ compensation coverage fails to do so:

  • Uninsured Employers Fund may provide benefits to injured workers
  • Uninsured employer may face significant penalties and fines
  • Workers may also have ability to pursue civil lawsuit against uninsured employer

Report Uninsured Employers: Tennessee Bureau of Workers’ Compensation – (800) 332-2667

Source: Tenn. Code Ann. § 50-6-801 et seq.; Uninsured Employers Fund

Best Practices for Remote Work (General Recommendations Only)

The following are general recommendations compiled from various sources and best practices. They do not constitute legal requirements and may not be suitable for all situations. Consult legal counsel and safety professionals for situation-specific guidance.

For Employers:

Considerations for Risk Management (Not Legal Requirements):

  • Consider ergonomic guidance: Providing information about proper workstation setup
  • Consider documentation: Maintaining records of remote work arrangements, approved work locations, and equipment provided
  • Consider safety training: Providing guidance on home office safety
  • Consider injury reporting procedures: Clear policies on how and when to report injuries
  • Consider work hour policies: Clear expectations about work hours and after-hours availability
  • Consult professionals: Work with HR counsel, safety consultants, and insurance advisors on remote work policies

Note: None of these are required by Tennessee law for all employers. Requirements vary by industry, employer size, and specific circumstances. These are general risk management concepts only.

For Employees:

Considerations for Home Office Safety (General Suggestions):

  • Consider dedicated work area: Setting up specific area for work that is free from hazards
  • Consider documentation: Maintaining records of work location, work hours, and any work-related incidents
  • Consider prompt reporting: Reporting any work-related injuries immediately to employer
  • Consider work hour boundaries: Maintaining clear distinction between work time and personal time
  • Consult professionals: Seeking medical attention for any injuries and legal counsel if coverage questions arise

Note: These are general suggestions only, not legal obligations. Individual circumstances vary.

When Coverage Questions Arise

If questions arise about whether an injury is covered by workers’ compensation:

For Injured Workers:

  1. Report to Employer Immediately – Even if unsure about coverage
  2. Seek Medical Attention – For evaluation and treatment of injury
  3. Contact Bureau Ombudsman – Free assistance: (800) 332-2667
  4. Consider Legal Counsel – Workers’ compensation attorney can provide case-specific advice
  5. Document Everything – Keep records of injury circumstances, medical treatment, and communications

For Employers:

  1. Report to Insurance Carrier – Immediately upon notice of any potential claim
  2. Report to Bureau if Required – Within 15 days if claim may exceed thresholds
  3. Consult Legal Counsel – For coverage questions and claim handling
  4. Document Thoroughly – Maintain detailed records of all aspects of claim
  5. Follow Carrier Instructions – Insurance carrier typically handles claim administration

Additional Resources and Contacts

Tennessee Bureau of Workers’ Compensation:

For Legal Representation:

  • Workers’ Compensation Attorneys
  • Tennessee Bar Association Lawyer Referral: (800) 342-8631
  • Website: https://www.tba.org

For Medical Evaluation:

  • Authorized treating physicians (panel provided by employer)
  • Independent medical evaluation if questions about treatment or impairment rating

FINAL CRITICAL REMINDER

⚠️ Workers’ compensation is a highly specialized area involving complex medical, legal, and factual determinations.

Coverage questions should be directed to:

  1. Tennessee Bureau of Workers’ Compensation for official determinations and assistance: (800) 332-2667
  2. Licensed workers’ compensation attorney for legal advice and representation
  3. Medical professionals for injury evaluation and treatment
  4. Employer’s workers’ compensation insurance carrier for claim administration

This section is for general background information only and should not be relied upon for coverage determinations or legal decisions.

When in doubt about coverage, err on the side of reporting the injury promptly. Tennessee has strict notice and filing deadlines that can bar claims if missed.

Other Leave Entitlements

Paid Sick Leave in Tennessee

Tennessee State Law:

According to available information, Tennessee does not have a state law requiring private employers to provide paid or unpaid sick leave to employees.

What this generally means:

  • Private employers are generally not required by Tennessee state law to provide paid sick leave
  • No minimum accrual, usage, or carryover requirements under state law
  • Sick leave policies, if provided, are generally determined by employer or collective bargaining agreements

Source: Tennessee Department of Labor & Workforce Development

Federal Protections: While Tennessee does not mandate sick leave, federal laws may provide certain unpaid leave protections (see FMLA section below).

Family and Medical Leave

Federal Family and Medical Leave Act (FMLA)

The federal Family and Medical Leave Act applies to eligible employees in Tennessee.

Coverage: According to U.S. Department of Labor, FMLA generally covers:

  • Private employers with 50 or more employees
  • Public agencies (regardless of size)
  • Public and private schools (regardless of size)

Eligible Employees: To be eligible for FMLA leave, an employee generally must:

  • Work for covered employer
  • Have worked for employer for at least 12 months
  • Have worked at least 1,250 hours during the 12 months prior to leave
  • Work at a location where employer has 50+ employees within 75 miles

Leave Entitlement: Eligible employees may take up to 12 weeks of unpaid leave in a 12-month period for:

  • Birth and care of newborn child
  • Placement of child for adoption or foster care
  • Care for spouse, child, or parent with serious health condition
  • Employee’s own serious health condition
  • Qualifying exigencies related to military service of covered family member

Additional military caregiver leave of up to 26 weeks may be available in certain circumstances.

Job Protection: FMLA generally provides job protection and continuation of health benefits during leave.

Source: Family and Medical Leave Act, 29 U.S.C. § 2601 et seq.; U.S. Department of Labor – https://www.dol.gov/agencies/whd/fmla

Note: FMLA has detailed eligibility, notice, and certification requirements. Consult U.S. Department of Labor or employment counsel for compliance guidance.

Tennessee Maternity Leave Law

Tennessee has a separate maternity/parental leave law for large employers.

Statutory Citation: Tenn. Code Ann. § 4-21-408
Coverage: Generally applies to employers with 100 or more full-time employees at the jobsite or location where the employee works

Leave Entitlement (as stated in statute): Eligible employees may take up to 4 months of unpaid leave for:

  • Pregnancy
  • Childbirth
  • Nursing an infant
  • Adoption

Eligibility Requirements: According to statute, employees generally must:

  • Have worked full-time for at least 12 consecutive months

Notice Requirements:

  • Generally must give 3 months’ notice unless medical emergency requires leave to begin sooner

Relationship to FMLA: This leave may run concurrently with FMLA leave. The Tennessee law may provide additional protections for employees not covered by FMLA (due to employer size differences) or longer leave duration.

Source: Tenn. Code Ann. § 4-21-408

Note: Specific requirements and interactions with FMLA can be complex. Consult legal counsel for guidance on leave administration.

Military Leave

Federal USERRA

The Uniformed Services Employment and Reemployment Rights Act (USERRA) provides federal protections for employees who serve in uniformed services.

Protections Include:

  • Right to be reinstated to employment after military service (up to 5 years)
  • Protection from discrimination based on military service
  • Continuation of health benefits during certain periods of service

Source: 38 U.S.C. § 4301 et seq.; U.S. Department of Labor – https://www.dol.gov/agencies/vets/programs/userra

Tennessee Military Leave

Tennessee provides certain protections for National Guard members.

Statutory Citation: Tenn. Code Ann. § 8-33-109
General Protection: Tennessee law generally prohibits employers from discriminating against or refusing to hire individuals because of membership in Tennessee National Guard or taking leave for military service or training.

Source: Tenn. Code Ann. § 8-33-109

Note: Federal USERRA generally provides broader protections. Consult with military legal assistance or employment attorney for specific situations.

Jury Duty Leave

Tennessee Requirements:

According to Tennessee law, employers must allow employees to take time off for jury duty.

Protections (as stated in statute):

  • Employers may not demote, suspend, or otherwise discriminate against employee for jury service
  • Night shift workers cannot be required to work night shift during jury duty or night before jury service begins

Compensation:

  • Employers with 5 or more employees generally must provide employee’s usual compensation for time spent serving on jury and traveling to and from jury duty
  • Employers with fewer than 5 employees are not required to compensate for jury service

Source: Tenn. Code Ann. § 22-4-108; Tenn. Code Ann. § 50-1-501

Voting Leave

Tennessee Requirements:

According to Tennessee law, employees have the right to take time off to vote.

Leave Entitlement (as stated in statute):

  • Employees may take up to 3 hours of paid time off to vote
  • Employer may specify when during employee’s shift the time is taken
  • Employee must request leave by noon on the day before the election

Exception: Time off is not required if:

  • Employee’s workday begins 3 or more hours after polls open, OR
  • Employee’s workday ends 3 or more hours before polls close

Source: Tenn. Code Ann. § 2-1-106

Bereavement Leave

Tennessee does not have a state law requiring private employers to provide bereavement leave. Bereavement leave policies, if provided, are generally determined by employer policy or collective bargaining agreements.

Note: Some public sector employees may have bereavement leave provisions under specific statutes or regulations.

Victims’ Leave

Tennessee has certain protections for victims of crime regarding leave for court proceedings, but requirements vary. Consult Tennessee statutes or legal counsel for specific situations.

Anti-Discrimination Laws

Tennessee Human Rights Act

Statutory Citation: Tenn. Code Ann. § 4-21-101 et seq.
Administering Agency: Tennessee Human Rights Commission
Official Source: https://www.tn.gov/humanrights.html

Protected Categories

According to the Tennessee Human Rights Act, employment discrimination is generally prohibited on the basis of:

  • Race
  • Creed
  • Color
  • Religion
  • Sex (including pregnancy, childbirth, and related conditions)
  • Age (40 and over)
  • National origin
  • Disability

Source: Tenn. Code Ann. § 4-21-401

Coverage

The Tennessee Human Rights Act generally applies to:

  • Employers with 8 or more employees for most provisions
  • Employers with 15 or more employees for disability discrimination

Note: Counting employees may involve specific rules. Consult Tennessee Human Rights Commission or legal counsel for coverage determinations.

Prohibited Practices

According to the statute, covered employers generally may not:

  • Refuse to hire or discharge any individual based on protected characteristic
  • Discriminate in compensation, terms, conditions, or privileges of employment
  • Limit, segregate, or classify employees in ways that would deprive opportunities
  • Retaliate against individuals who oppose unlawful practices or participate in proceedings

Source: Tenn. Code Ann. § 4-21-401

Pregnancy Discrimination

Tennessee law specifically addresses pregnancy discrimination:

  • Discrimination based on pregnancy, childbirth, or related medical conditions is prohibited
  • Women affected by pregnancy must be treated the same as other employees with similar abilities/limitations

Source: Tenn. Code Ann. § 4-21-408

Reasonable Accommodation

For Disability: Employers may be required to provide reasonable accommodation to qualified individuals with disabilities, unless accommodation would impose undue hardship.

Note: Federal ADA (see below) may provide broader protections. Coordination between state and federal law should be evaluated with legal counsel.

Filing Complaints

Complaints of discrimination under Tennessee Human Rights Act may be filed with:

Tennessee Human Rights Commission

  • Address: 710 James Robertson Parkway, Suite 100, Nashville, TN 37243-1219
  • Phone: (615) 741-5825 or (800) 251-3589
  • Website: https://www.tn.gov/humanrights.html
  • Filing Deadline: Generally complaints must be filed within 180 days of alleged discriminatory act

Source: Tennessee Human Rights Commission

Federal Anti-Discrimination Laws

Remote workers in Tennessee may also be protected by various federal anti-discrimination laws, including:

Title VII of the Civil Rights Act of 1964

Coverage: Employers with 15 or more employees

Protected Categories:

  • Race
  • Color
  • Religion
  • Sex (including pregnancy, sexual orientation, and gender identity per recent interpretations)
  • National origin

Enforcing Agency: U.S. Equal Employment Opportunity Commission (EEOC)
Filing Deadline: Generally 180 or 300 days depending on state (Tennessee is a “dual filing” state, so 300 days generally applies)

Source: 42 U.S.C. § 2000e et seq.; EEOC – https://www.eeoc.gov

Americans with Disabilities Act (ADA)

Coverage: Employers with 15 or more employees

Protections:

  • Prohibits discrimination against qualified individuals with disabilities
  • Requires reasonable accommodation unless undue hardship
  • Prohibits inquiries about disability before conditional job offer
  • Protects against retaliation

Remote Work and ADA:

  • Remote work may be a reasonable accommodation in some circumstances
  • Analysis is fact-specific and depends on essential job functions
  • Interactive process required to determine appropriate accommodations

Enforcing Agency: U.S. Equal Employment Opportunity Commission (EEOC)

Source: 42 U.S.C. § 12101 et seq.; EEOC – https://www.eeoc.gov/disability-discrimination

Age Discrimination in Employment Act (ADEA)

Coverage: Employers with 20 or more employees

Protection: Prohibits discrimination against individuals 40 years of age or older

Enforcing Agency: U.S. Equal Employment Opportunity Commission (EEOC)

Source: 29 U.S.C. § 621 et seq.; EEOC – https://www.eeoc.gov/age-discrimination

Equal Pay Act

Coverage: Generally all employers covered by FLSA

Protection: Prohibits wage discrimination based on sex for substantially equal work

Enforcing Agency: U.S. Equal Employment Opportunity Commission (EEOC)

Source: 29 U.S.C. § 206(d); EEOC

Genetic Information Nondiscrimination Act (GINA)

Coverage: Employers with 15 or more employees

Protection: Prohibits discrimination based on genetic information

Enforcing Agency: U.S. Equal Employment Opportunity Commission (EEOC)

Source: 42 U.S.C. § 2000ff et seq.; EEOC – https://www.eeoc.gov/genetic-information-discrimination

Filing Federal Discrimination Complaints

U.S. Equal Employment Opportunity Commission (EEOC):

Harassment

Both Tennessee and federal law prohibit harassment based on protected characteristics. Harassment that creates a hostile work environment or involves quid pro quo may violate discrimination laws.

Remote Work Considerations:

  • Harassment protections apply to remote workers
  • Virtual harassment (emails, video calls, messaging platforms) may violate laws
  • Employers should have policies addressing remote/virtual workplace conduct

Source: Tennessee Human Rights Commission; EEOC guidance

Retaliation

Both state and federal law prohibit retaliation against individuals who:

  • Oppose unlawful discrimination
  • File complaints or charges
  • Participate in investigations or proceedings
  • Request reasonable accommodations

Note: Retaliation claims are common and taken seriously by enforcement agencies. Employers should consult legal counsel on any adverse employment actions following protected activity.

Remote Work Considerations

General Framework

Remote work arrangements in Tennessee are generally governed by the same employment laws that apply to on-site work, with certain practical considerations and adaptations.

Key Principle: The fact that work is performed remotely generally does not exempt employers or employees from applicable employment laws. Location where work is performed typically determines which state’s laws apply.

Wage and Hour Considerations for Remote Work

Issues that may arise with remote workers:

  • Time tracking: Employers generally must keep accurate records of hours worked, including for non-exempt remote employees
  • Overtime: Remote non-exempt employees are generally entitled to overtime pay for hours worked over 40 in a workweek
  • Off-the-clock work: Work performed by non-exempt employees outside scheduled hours (emails, calls, etc.) may be compensable
  • Break compliance: Tennessee meal break requirements generally apply to remote workers

Best Practices to Consider (Not Legal Requirements):

  • Clear timekeeping policies and systems for remote workers
  • Policies addressing after-hours work and communication
  • Training for managers on wage-hour compliance for remote staff
  • Regular audits of remote worker time records

Consult: Wage-hour counsel for remote work policies and compliance

Source: Fair Labor Standards Act; U.S. Department of Labor guidance

Workers’ Compensation for Remote Workers

See Part 3 of this guide for detailed information on workers’ compensation considerations for remote workers in Tennessee.

Summary: Coverage of remote work injuries is fact-specific and depends on whether injury “arises out of and in the course of employment.” Consult Tennessee Bureau of Workers’ Compensation for specific situations.

Workplace Safety for Remote Work

Tennessee Occupational Safety and Health Act (TOSHA):

According to TOSHA, employers have a general duty to provide employees with a workplace free from recognized hazards. Application to remote work settings may vary.

Considerations:

  • Employers may have limited ability to control home work environments
  • Ergonomic guidance and training may be provided
  • Reporting requirements for remote work injuries may apply
  • TOSHA inspections of home offices are generally uncommon but legal framework exists

Consult: TOSHA at (615) 741-2793 or safety professionals for guidance on remote work safety obligations

Source: Tennessee Occupational Safety & Health Administration – https://www.tn.gov/workforce/divisions/tosha.html

Tax Considerations for Remote Work

See Part 5 of this guide for detailed tax information.

Summary: Tennessee has no state income tax on wages. However, remote work may create tax obligations in other states where work is performed. Consult tax professionals for multi-state remote work situations.

Multi-State Remote Work

When employees work remotely from states other than Tennessee:

Issues that may arise:

  • Which state’s employment laws apply
  • Wage and hour law compliance in work location state
  • Workers’ compensation coverage requirements
  • Tax withholding and reporting obligations
  • Unemployment insurance obligations
  • Registration and licensing in other states

This is a complex area requiring legal and tax analysis. Employers with multi-state remote workers should consult with counsel licensed in each relevant state and multi-state tax professionals.

Discrimination and Accommodation in Remote Settings

Key Points:

  • Anti-discrimination laws apply to remote workers
  • Reasonable accommodation obligations may include allowing remote work
  • Interactive process for accommodations should occur regardless of work location
  • Remote work may be temporary accommodation while exploring permanent solutions

Source: EEOC guidance; ADA

Data Security and Privacy

Considerations for remote work:

  • Protection of confidential company and customer data
  • Compliance with industry-specific regulations (HIPAA, financial regulations, etc.)
  • Use of secure networks and devices
  • Policies on use of personal devices

Note: Tennessee does not have comprehensive data privacy law like some states (as of December 2025). However, federal and industry-specific requirements may apply.

Consult: Cybersecurity professionals and legal counsel for data protection requirements

Remote Work Agreements and Policies

Employers may wish to consider (not legal requirements):

  • Written remote work agreements addressing:
    • Work schedule and availability expectations
    • Equipment and expenses
    • Workspace requirements
    • Data security obligations
    • Time tracking and overtime procedures
    • Performance expectations
  • Clear policies on:
    • Eligibility for remote work
    • Equipment provision and maintenance
    • Expense reimbursement
    • Termination of remote work arrangements

Consult: Employment counsel for drafting remote work agreements and policies

Expense Reimbursement

Tennessee Law: Tennessee does not appear to have state law requiring employers to reimburse remote workers for business expenses.

Federal Law: Federal law generally requires that expenses cannot reduce non-exempt employee’s pay below minimum wage.

Best Practices: Many employers establish policies for reimbursing remote work expenses (internet, equipment, etc.) even if not legally required. Consult HR counsel for policy development.

Termination of Remote Work Arrangements

At-Will Employment: Tennessee is an at-will employment state. Absent a contract or specific legal protection, either party generally may end the employment relationship or modify terms (including remote work arrangements) at any time for any legal reason.

However:

  • Changes to work arrangements may not be based on discriminatory reasons
  • May implicate ADA reasonable accommodation obligations
  • May affect unemployment eligibility if employee refuses change
  • Contractual agreements should be reviewed

Consult: Employment attorney before making significant changes to remote work arrangements

Tax Information

Tennessee State Income Tax

Individual Income Tax:

According to Tennessee Department of Revenue and available information, Tennessee does not have a state income tax on wages, salaries, or other earned income.

What this generally means:

  • No state income tax withholding required on employee wages
  • No state income tax filing requirements for wage earners
  • Remote workers performing work in Tennessee generally do not owe Tennessee state income tax on wages

Historical Note: Tennessee previously had the “Hall Income Tax” on interest and dividend income, which was fully repealed effective January 1, 2021.

Source: Tennessee Department of Revenue – https://www.tn.gov/revenue.html

Federal Income Tax

All workers (including remote workers in Tennessee) are generally subject to federal income tax.

Employer Obligations:

  • Withhold federal income tax from employee wages
  • Report wages on Form W-2
  • Remit withheld amounts to IRS

Employee Obligations:

  • Report wages on federal income tax return
  • Pay any additional tax due or receive refund

Self-Employed/Independent Contractors:

  • Responsible for their own federal income tax payments
  • Generally make quarterly estimated tax payments
  • Report income on Schedule C (Form 1040)
  • Receive Form 1099-NEC from clients (if paid $600+)

Source: Internal Revenue Service – https://www.irs.gov

Self-Employment Tax

For Independent Contractors:

Self-employed individuals generally must pay self-employment tax (Social Security and Medicare taxes).

Rates (as of 2025):

  • Self-employment tax rate: Generally 15.3% (12.4% Social Security + 2.9% Medicare)
  • Applies to net self-employment income of $400 or more
  • Additional Medicare tax of 0.9% may apply to high earners

Note: Self-employed individuals may deduct the employer-equivalent portion of self-employment tax.

Source: Internal Revenue Service; Schedule SE (Form 1040)

Social Security and Medicare Taxes (FICA)

For Employees:

Both employer and employee pay Social Security and Medicare taxes.

Rates (as of 2025):

  • Social Security: 6.2% employee + 6.2% employer = 12.4% total
  • Medicare: 1.45% employee + 1.45% employer = 2.9% total
  • Additional Medicare tax: 0.9% on wages above threshold (employee only, no employer match)

Note: These taxes apply regardless of whether work is performed remotely.

Source: Internal Revenue Service; Social Security Administration

Unemployment Insurance Tax

Tennessee Unemployment Insurance:

Employers generally must pay state unemployment insurance tax to Tennessee Department of Labor & Workforce Development.

General Requirements:

  • Liability if employer has certain threshold of employees or wages (see Part 1 for details)
  • Tax rate varies by employer experience rating
  • Employees do not pay Tennessee unemployment insurance tax

Source: Tennessee Department of Labor & Workforce Development, Division of Employment Security – https://www.tn.gov/workforce/divisions/employmentsecurity.html

Note: Multi-state employers may have unemployment tax obligations in multiple states. Consult tax professional for multi-state situations.

Sales Tax

Tennessee Sales Tax:

Tennessee has a state sales tax that generally applies to sales of tangible personal property and certain services.

Rates:

  • State rate: 7%
  • Local rates: Additional 1.5% to 2.75%
  • Combined rates: Generally 8.5% to 9.75% depending on location

Remote Work Implications:

  • Remote workers generally do not have sales tax obligations related to their employment
  • Employers selling goods or services may have sales tax obligations based on nexus and sales activity

Source: Tennessee Department of Revenue – https://www.tn.gov/revenue/taxes/sales-and-use-tax.html

Business Tax

Tennessee Business Tax:

Tennessee has a gross receipts tax (business tax) that applies to certain businesses operating in the state.

General Framework:

  • Applies to businesses with gross receipts above threshold
  • Rate varies by business classification
  • Different from income tax (based on gross receipts, not net income)

Consult: Tennessee Department of Revenue or tax professional to determine if business tax applies

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

Multi-State Tax Considerations

For Remote Workers Working From Other States:

Tax situations can become complex when employees work remotely from states other than where employer is located.

Potential Issues:

  • Income tax withholding in work location state
  • “Convenience of employer” rules in some states
  • Tax credits for taxes paid to other states
  • Reciprocity agreements (Tennessee currently has none)
  • Employer registration requirements in other states

Example Scenario (Not Tax Advice): A Tennessee company employs someone who works remotely from North Carolina. North Carolina has income tax. The employer may need to:

  • Register with North Carolina
  • Withhold North Carolina income tax
  • File North Carolina withholding returns
  • Comply with North Carolina employment laws

This is highly fact-specific. Consult multi-state tax professional immediately for any multi-state remote work situations.

Independent Contractor Tax Reporting

For Businesses Using Independent Contractors:

Form 1099-NEC Requirements:

  • Must be provided to contractors paid $600 or more for services during the year
  • Must be filed with IRS
  • Deadline: Generally January 31

Note: Providing Form 1099 does NOT make someone an independent contractor. Classification depends on the working relationship (see Part 2).

Source: Internal Revenue Service – https://www.irs.gov/forms-pubs/about-form-1099-nec

Business Expense Deductions

For Self-Employed/Independent Contractors:

Self-employed individuals may generally deduct ordinary and necessary business expenses, which may include:

  • Home office expenses (if meeting strict requirements)
  • Equipment and supplies
  • Professional development
  • Business-related travel
  • Health insurance premiums (self-employed health insurance deduction)
  • Retirement contributions
  • Other business expenses

Home Office Deduction:

  • Strict requirements must be met
  • Space must be used regularly and exclusively for business
  • Must be principal place of business or used to meet clients/customers
  • Can use simplified or actual expense method

Consult tax professional for guidance on allowable deductions and documentation requirements.

Source: Internal Revenue Service; IRS Publication 587 (Business Use of Your Home)

Estimated Tax Payments

For Self-Employed Individuals:

Self-employed individuals generally must make quarterly estimated tax payments if expecting to owe $1,000 or more in taxes.

Due Dates (for 2025 tax year):

  • April 15, 2025
  • June 16, 2025 (June 15 falls on Sunday)
  • September 15, 2025
  • January 15, 2026

Use: Form 1040-ES for calculating and paying estimated taxes

Source: Internal Revenue Service – https://www.irs.gov/businesses/small-businesses-self-employed/estimated-taxes

Resources for Tax Assistance

Tennessee Department of Revenue:

Internal Revenue Service:

Tax Professionals:

  • Certified Public Accountants (CPAs)
  • Enrolled Agents (federally licensed tax practitioners)
  • Tax Attorneys
  • Tennessee Society of CPAs: https://www.tncpa.org

Resources

Tennessee Government Agencies

Tennessee Department of Labor & Workforce Development

Division-Specific Contacts:

Bureau of Workers’ Compensation

Division of Employment Security (Unemployment Insurance)

Tennessee Occupational Safety & Health Administration (TOSHA)

Division of Workplace Regulations & Compliance

Tennessee Human Rights Commission

Tennessee Department of Revenue

Federal Agencies

U.S. Department of Labor

Wage and Hour Division

Occupational Safety and Health Administration (Federal OSHA)

U.S. Equal Employment Opportunity Commission (EEOC)

Internal Revenue Service

Social Security Administration

Legal Assistance

Tennessee Bar Association

  • Lawyer Referral Service: (800) 342-8631
  • Website: https://www.tba.org
  • Address: 221 Fourth Avenue North, Suite 400, Nashville, TN 37219

Legal Aid Societies (for low-income individuals):

  • Legal Aid Society of Middle Tennessee and the Cumberlands: (615) 244-6610 / (800) 342-3900
  • Memphis Area Legal Services: (901) 523-8822
  • Legal Aid of East Tennessee: (865) 637-0484

Other Helpful Organizations

Tennessee Society of CPAs

Tennessee Chamber of Commerce & Industry

Society for Human Resource Management (SHRM) – Tennessee Chapters

⚠️ Note: Contact information was current as of December 2025. Verify current contact details with official websites as information may change.

Frequently Asked Questions

Classification and Employment Status

Q: How do I know if my remote worker is an employee or independent contractor in Tennessee?

A: Tennessee uses a 20-factor test (effective January 1, 2020) based on the IRS common law test. No single factor is determinative; all circumstances must be considered. The test examines control, financial relationships, and type of relationship. Consult Tennessee Department of Labor & Workforce Development, the IRS (Form SS-8), or employment counsel for classification determinations. Misclassification can result in significant penalties and back taxes.

See Part 2 of this guide for detailed information on the 20-factor test.

Q: Does giving someone a Form 1099 make them an independent contractor?

A: No. Classification depends on the actual working relationship, not tax forms issued. Giving someone a 1099 when they should be classified as an employee does not change their status and may result in penalties. Classification must be based on analysis of all relevant factors under the 20-factor test.

See Part 2 for more information.

Minimum Wage and Overtime

Q: What is the minimum wage for remote workers in Tennessee?

A: Tennessee does not have a state minimum wage law. The federal minimum wage of $7.25/hour generally applies to covered employers. Minimum wage is based on where work is physically performed, not employer location. A remote worker working from Tennessee would generally be subject to the $7.25/hour federal minimum wage (subject to exemptions and other factors).

See Part 2 for more information on minimum wage.

Q: Do remote workers get overtime pay?

A: Non-exempt remote workers are generally entitled to overtime pay (1.5x regular rate) for hours worked over 40 in a workweek, just like on-site workers. Whether a worker is exempt depends on salary level, salary basis, and duties tests – not work location. Employers must track hours worked by non-exempt remote employees and pay overtime as required.

See Part 2 for information on overtime and exemptions.

Q: How do I track time for remote employees?

A: Employers must keep accurate records of hours worked by non-exempt employees, regardless of work location. Methods may include:

  • Time tracking software
  • Honor system with manager review
  • Clock-in/clock-out systems
  • Activity monitoring (must comply with any applicable privacy laws)

Employers should have clear policies on time tracking, after-hours work, and meal breaks. Consult wage-hour counsel for compliant timekeeping systems.

Meal and Rest Breaks

Q: Do I have to provide breaks to remote workers in Tennessee?

A: Yes, if applicable. Tennessee requires employers to provide a 30-minute meal break to employees working 6+ consecutive hours (with certain exceptions). This generally applies to remote workers. Tennessee does not require rest breaks. If short breaks (5-20 min) are voluntarily provided, federal law requires they be paid.

See Part 2 for detailed break requirements.

Q: How do I ensure my remote worker takes required meal breaks?

A: This can be challenging with remote workers. Consider:

  • Clear written policies on break requirements
  • Time tracking systems that require clocking out for breaks
  • Manager check-ins
  • Training for remote workers on break requirements
  • Documentation systems

Consult employment counsel for break compliance strategies for remote workforce.

Paid Sick Leave

Q: Do I have to provide paid sick leave to remote workers in Tennessee?

A: Tennessee does not have a state law requiring private employers to provide paid or unpaid sick leave. Federal law does not mandate paid sick leave for private employers (though FMLA provides unpaid leave in certain circumstances). If you voluntarily provide sick leave, you must follow your stated policy consistently.

See Part 4 for information on leave entitlements.

Workers’ Compensation

Q: Are remote workers covered by workers’ compensation in Tennessee?

A: It depends on the specific circumstances. Tennessee workers’ compensation generally covers injuries that “arise out of and in the course of employment.” Whether a home office injury meets this standard depends on detailed factual analysis including: nature of activity, location of injury, work hours, whether activity was work-related, employer knowledge of setup, and many other factors.

Every case is unique. Report all potential work injuries to your workers’ compensation carrier immediately and consult Tennessee Bureau of Workers’ Compensation or legal counsel for coverage questions.

See Part 3 for extensive information on workers’ compensation for remote workers.

Q: What if my remote employee gets hurt at home while working?

A:

  1. Report to insurance carrier immediately – even if unsure about coverage
  2. Report to Bureau of Workers’ Compensation if required (injuries exceeding $1,500 medical costs or involving lost time)
  3. Provide panel of physicians if appropriate
  4. Document all facts thoroughly
  5. Consult workers’ compensation counsel

Do not make coverage determinations yourself – let the insurance carrier, Bureau, or court make official determinations.

Q: How can I reduce workers’ compensation risk for remote workers?

A: Consider (not legal requirements):

  • Provide ergonomic guidance
  • Offer or require proper equipment
  • Establish home office safety policies
  • Provide safety training
  • Maintain clear work hour policies
  • Document work arrangements
  • Consult safety professionals and workers’ comp counsel

See Part 3 for more information.

Leave and Time Off

Q: Do I have to provide FMLA leave to remote workers?

A: If your company is covered by FMLA (50+ employees) and the remote worker is eligible (worked 12 months, 1,250 hours, works within 75 miles of 50+ employees), then yes, FMLA applies regardless of whether they work remotely. FMLA calculation can be complex for remote workers spread across locations. Consult FMLA counsel for multi-location scenarios.

See Part 4 for FMLA and other leave information.

Q: Can I require my remote worker to come into the office?

A: Unless you have a contract stating otherwise, Tennessee is an at-will employment state, so employers generally can change terms of employment (including remote work arrangements) for any legal reason. However:

  • Cannot be discriminatory reason
  • May implicate ADA reasonable accommodation obligations
  • May affect unemployment eligibility if employee refuses
  • Should review any employment agreements or policies
  • Consider operational necessity and employee relations

Consult employment counsel before making significant changes to remote arrangements.

Taxes

Q: Do remote workers in Tennessee pay state income tax?

A: No. Tennessee does not have a state income tax on wages or salaries. However, remote workers must still pay federal income tax. If a remote worker works from a state other than Tennessee, they may owe income tax to that state.

See Part 5 for tax information.

Q: If I’m a Tennessee employer and my employee works remotely from another state, what are my tax obligations?

A: This is complex and requires multi-state tax professional consultation. You may need to:

  • Register as an employer in the work state
  • Withhold that state’s income tax
  • Pay unemployment insurance to that state
  • Comply with that state’s wage-hour laws
  • File tax returns in multiple jurisdictions

Do not attempt multi-state tax compliance without professional guidance.

Multi-State Issues

Q: Which state’s laws apply if my Tennessee employer lets me work from another state?

A: Generally, employment laws of the state where work is physically performed apply. This means:

  • Work state’s minimum wage
  • Work state’s overtime laws
  • Work state’s workers’ compensation requirements
  • Work state’s leave laws
  • Work state’s tax laws

However, this can be very complex with overlapping federal laws, reciprocity agreements (none for Tennessee), and choice of law provisions. Consult multi-state employment counsel immediately.

Q: Can I hire remote workers in other states?

A: Legally, yes, but it creates significant compliance obligations:

  • Must comply with other state’s employment laws
  • Multi-state tax withholding and reporting
  • Possible registration requirements in other states
  • Workers’ compensation coverage in other states
  • Unemployment insurance in other states
  • Varying employee protection laws

Hiring employees in other states is complex. Consult multi-state employment counsel and tax professionals before doing so.

Discrimination and Accommodation

Q: Do anti-discrimination laws apply to remote workers?

A: Yes. Federal and Tennessee anti-discrimination laws apply to remote workers just as they do to on-site workers. Remote work does not eliminate protections against discrimination based on race, sex, age, disability, religion, or other protected characteristics.

See Part 4 for anti-discrimination information.

Q: Can I be required to allow remote work as a reasonable accommodation?

A: Possibly. Under the ADA, remote work may be a reasonable accommodation for a qualified individual with a disability if:

  • The employee can perform essential job functions remotely
  • It does not create undue hardship for the employer
  • Job does not require in-person presence as essential function

This is fact-specific and requires an interactive process. Consult with ADA counsel and EEOC guidance.

Q: Can harassment happen in a remote work environment?

A: Yes. Harassment can occur through:

  • Video conferences
  • Emails and messaging
  • Virtual meetings
  • Phone calls
  • Any work-related communication

Harassment and discrimination laws fully apply to remote work environments. Employers should have policies addressing virtual workplace conduct.

Practical Remote Work Questions

Q: Do I have to reimburse remote workers for home office expenses in Tennessee?

A: Tennessee does not appear to have a law requiring reimbursement of remote work expenses. However:

  • Some states do have such requirements
  • Federal law prohibits expenses from reducing non-exempt worker’s pay below minimum wage
  • Many employers establish voluntary reimbursement policies
  • Contractual agreements may require reimbursement

Consult employment counsel for reimbursement policy development.

Q: Can I monitor my remote workers’ computer activity?

A: Generally yes, if using company equipment and with proper notice, but:

  • Should have clear policy disclosed to employees
  • Must comply with federal laws (e.g., Wiretap Act, ECPA)
  • Must not violate any state privacy laws
  • Should balance business needs with employee privacy
  • Different rules for personal vs. company devices

Consult employment counsel and IT professionals before implementing monitoring.

Q: How do I terminate a remote worker in Tennessee?

A: Tennessee is an at-will employment state, so employment generally can be terminated for any legal reason. Same rules apply to remote workers as on-site workers:

  • Cannot be discriminatory
  • Cannot violate public policy
  • Cannot violate contract
  • Should follow company policies consistently
  • Document reasons for termination
  • Consider unemployment implications

Consult employment counsel before terminating any employee, especially if there have been recent complaints or requests for accommodation.

Q: What if my remote worker refuses to return to the office?

A: This depends on:

  • Terms of original employment agreement
  • Whether company policy allows remote work
  • Whether return-to-office is business necessity
  • Whether accommodation obligations exist (ADA)
  • Whether refusal is for legally protected reason

Employee may be subject to discipline/termination for refusing lawful work directive, but may qualify for unemployment in some circumstances. Consult employment counsel before taking adverse action.

Getting Help

Q: Where can I get help with Tennessee employment law questions?

A:

  • Tennessee Department of Labor & Workforce Development: (844) 224-5818
  • Tennessee Bureau of Workers’ Compensation Ombudsman: (800) 332-2667
  • Tennessee Human Rights Commission: (615) 741-5825
  • U.S. Department of Labor: (866) 487-9243
  • EEOC: (800) 669-4000
  • Employment Attorney: Tennessee Bar Lawyer Referral: (800) 342-8631
  • Legal Aid (if low-income): Various organizations listed in Resources section

Q: I think I’ve been misclassified as an independent contractor. What can I do?

A:

  1. Contact Tennessee Department of Labor & Workforce Development: (844) 224-5818
  2. File IRS Form SS-8 for federal tax determination
  3. File complaint with U.S. Department of Labor if wage-hour violations
  4. Consult employment attorney for legal options
  5. Document all aspects of working relationship

Misclassification may entitle you to unpaid wages, overtime, benefits, and other remedies.

Q: My employer hasn’t paid me for overtime. What should I do?

A:

  1. Document hours worked and wages paid
  2. Raise issue with employer (preferably in writing)
  3. If unresolved, file complaint:
    • U.S. Department of Labor Wage and Hour Division: (866) 487-9243
    • Tennessee Department of Labor & Workforce Development: (844) 224-5818
  4. Consult employment attorney – you may be entitled to unpaid wages, liquidated damages, and attorney’s fees

Important: Statute of limitations generally 2-3 years for wage claims. Do not delay.

Others

Texas
Florida
Georgia
North Carolina
Kentucky

Legal Disclaimer: This guide provides general background information only and does not constitute legal, tax, or professional advice. Employment laws are complex and subject to interpretation. Consult licensed legal counsel and official state agencies for guidance specific to your situation.