Tennessee Minimum Wage: Current Rate & Scheduled Increases

The federal minimum wage is $7.25 per hour, established by the Fair Labor Standards Act (FLSA), 29 U.S.C. § 206. This applies to most private-sector employees in enterprises with annual gross revenues of $500,000 or more, as well as employees in certain industries including healthcare, schools, and government agencies.

The FLSA covers employees engaged in interstate commerce or employed by covered enterprises. Employers must pay all covered employees at least the minimum wage for all hours worked, regardless of whether compensation is calculated on a salary, piece-rate, commission, or hourly basis. The law prohibits employers from reducing wages to minimum wage as a disciplinary measure when an employee has earned higher wages.

For tipped employees, the FLSA allows employers to take a tip credit of up to $5.12 per hour, meaning the employer pays $2.13 per hour in direct wages, provided that tips combine with base wages to reach at least $7.25 per hour. If tips do not reach this amount, the employer must make up the difference. Tipped employees include servers, bartenders, housekeeping staff, and others who regularly receive tips.

The U.S. Department of Labor (DOL) enforces the FLSA. Employees may file complaints with the Wage and Hour Division or pursue private lawsuits for unpaid minimum wages plus an equal amount in liquidated damages, plus attorney fees and costs. The statute of limitations is generally two years (or three years for willful violations).

Tennessee has no independent state minimum wage law above the federal floor. The state adopts and enforces the federal minimum wage of $7.25 per hour under the authority granted by the Fair Labor Standards Act. Tennessee Code Annotated § 50-2-102 requires compliance with federal wage and hour standards but does not establish a separate state-level minimum wage.

Because Tennessee has no state minimum wage law exceeding the federal minimum, the state law is effectively equivalent to federal law for minimum wage purposes. Tennessee employers must comply with the federal minimum wage and cannot pay less than $7.25 per hour to covered employees. If federal and state wage laws conflict or overlap, the employer must follow whichever law is more beneficial to the employee.

Tennessee's wage and hour law applies to all employers with employees, consistent with the FLSA's broad coverage. Unlike some states that have narrower coverage rules, Tennessee enforces federal standards uniformly across the state. However, Tennessee does not provide additional protections such as a higher minimum wage for specific industries, geographic regions, or company sizes.

Tennessee also recognizes the tipped employee exception under the federal model, permitting the $2.13 base wage plus tip credit system. The state has not established separate tipped minimum wage requirements or prohibited tip pooling arrangements (beyond federal restrictions). Remedies under Tennessee wage and hour law follow federal FLSA standards: employees may recover unpaid wages, liquidated damages equal to the unpaid amount, attorney fees, and costs through civil litigation in state or federal court.

Tennessee courts have upheld the application of federal minimum wage standards and have generally deferred to DOL interpretations of the FLSA as they apply within the state.

Minimum wage: $7.25 per hour (federal floor, no state override).

Tipped employee base wage: $2.13 per hour if tips combined with base reach $7.25 per hour.

FLSA coverage threshold: Enterprise with $500,000 or more in annual gross revenues, or employees in certain covered industries.

Statute of limitations for wage claims: Two years under the FLSA (three years for willful violations).

Deadline to file DOL wage complaint: No statutory deadline, but claims must arise within the lookback period.

Civil action statute of limitations in Tennessee state court: Generally two to three years depending on claim type and jurisdiction.

Certain employees are exempt from minimum wage requirements. Under the FLSA, the primary exemptions include executive, administrative, and professional employees who satisfy the salary threshold and duties tests; outside sales employees; and computer-related professionals. These exemptions are narrowly construed, and misclassification exposes employers to significant liability.

Minors under 16 may be employed in limited occupations and hours under federal and Tennessee child labor laws. However, when minors are employed, they must be paid at least minimum wage for all hours worked. There is no separate subminimum wage for minors in Tennessee or under federal law, though some employers mistakenly believe otherwise.

Internships and apprenticeships may qualify for lower or no wages if the arrangement meets strict criteria under the DOL's six-factor test. The intern or apprentice must not displace a regular employee, must not be entitled to a paid job afterward, and the employer must derive no immediate benefit from the intern's work. If these conditions are not met, the intern must be paid minimum wage.

Family-owned businesses are not exempt from minimum wage laws, even if the work is performed by family members. Parents and adult children working in a family business must receive minimum wage.

Not-for-profit organizations and charities are not categorically exempt from minimum wage requirements, though certain volunteer positions may not constitute employment under the FLSA if the volunteer performs work without expectation of compensation and the organization is primarily charitable.

Gig economy workers and independent contractors are generally not covered by minimum wage laws if they meet the independent contractor test under the FLSA and Tennessee common law. However, misclassification as an independent contractor when the individual is truly an employee is a frequent violation.

Computer professionals may be exempt under certain conditions, but only if they earn at least $27.63 per hour (or $57,500 annually on a salary basis) and meet specific duties requirements.

Employees working under collective bargaining agreements may have wage protections that exceed the minimum, but the minimum wage floor still applies unless explicitly waived by a valid contract.

Step 1: Document all wage payments and hours worked. Keep pay stubs, timesheets, email communications regarding compensation, and any written employment agreements or offer letters. Record the dates, hours, and rates paid for each pay period. If the employer failed to pay or underpaid, calculate the shortfall by multiplying unpaid hours by the $7.25 minimum wage. Preserve any communications from management confirming pay rates or acknowledging reduced wages. Take screenshots of digital records in case they are deleted. Document the name, title, and contact information of management who made decisions about your pay.

Step 2: Make a written internal complaint to your employer before filing externally (if safe to do so). Provide the human resources department or payroll manager with a clear written statement identifying the wage violation, the dates affected, the amount underpaid, and a request for payment. Request a written response within 10 business days. Email or hand-deliver the complaint so you have proof of delivery. If you believe retaliation is likely, consider skipping this step or consulting an attorney first. Keep a copy of any response or lack thereof. This step creates an internal record and may lead to prompt correction without further action.

Step 3: File a wage complaint with the U.S. Department of Labor's Wage and Hour Division (WHD). The WHD enforces the FLSA and covers all employers subject to the federal minimum wage. File online at www.dol.gov/agencies/whd or call 1-866-4-USDOL (1-866-487-3652). You may also file in person at the regional WHD office in Nashville, Tennessee (contact: Nashville District Office, 615-736-5104). Provide your name, contact information, employer name and address, job title, dates of employment, description of the violation, and specific dates and amounts of unpaid wages. There is no filing fee. The WHD will investigate without requiring you to pay for representation. Alternatively, or in addition to, file a civil lawsuit in Tennessee state or federal court within two years of the violation (or three years if the violation is deemed willful). For federal court, file in the U.S. District Court for the appropriate Tennessee district.

Step 4: Understand the investigation process. After you file with the WHD, an investigator will contact the employer and request payroll records, timesheets, and documentation of hours worked and wages paid. The investigator will compare actual hours and wages to the $7.25 minimum wage requirement. If a violation is found, the WHD will issue a Notice of Violation requiring the employer to pay back wages, penalties, and interest. The typical investigation takes 30-90 days, though complex cases may take longer. The employer may dispute the findings, but the burden is on the employer to prove compliance. If the employer does not comply voluntarily, the DOL may pursue a civil action to collect on behalf of the employees. You may be contacted for a witness statement during the investigation. The WHD will keep your identity confidential if you request it, though confidentiality cannot always be guaranteed.

Step 5: Consult an employment attorney if the amount is substantial, the employer resists correction, or you face retaliation. An attorney can evaluate whether to pursue a private lawsuit under the FLSA (which allows recovery of unpaid wages, liquidated damages equal to the unpaid amount, attorney fees, and costs). Attorneys often work on a contingency basis for FLSA claims, meaning they are paid from the recovery. An attorney can also represent you in negotiations, help file a DOL complaint, or pursue a class action if multiple employees were affected. Choose an attorney licensed in Tennessee with experience in wage and hour law. Many offer free initial consultations.