Overtime Pay Rules in Tennessee: Who Qualifies & What You Earn

The Fair Labor Standards Act (FLSA), 29 U.S.C. § 201 et seq., sets the federal overtime standard that applies in Tennessee. The FLSA requires employers to pay non-exempt employees at least 1.5 times their regular hourly rate for all hours worked over 40 in a workweek. The law applies to employers with annual gross revenues of $500,000 or more, and to certain enterprises in retail, construction, and public administration regardless of revenue. The FLSA covers all private-sector employees except those meeting narrow exemptions for executive, administrative, professional, computer, and outside sales positions (29 C.F.R. Part 541).

The Department of Labor (DOL) enforces the FLSA nationwide. Overtime compensation is calculated based on the employee's regular rate of pay, which includes wages plus certain bonuses and commissions, divided by hours worked. The law does not require daily overtime (only weekly), does not mandate premium pay for weekends or holidays unless hours exceed 40 for the week, and does not require overtime for working more than 8 hours per day. Remedies include back pay for unpaid overtime, liquidated damages equal to the back pay amount, and attorney's fees and costs. The DOL Wage and Hour Division investigates complaints and can bring enforcement actions; employees may also sue privately under 29 U.S.C. § 216.

Tennessee has no independent state overtime law. Instead, Tennessee employers are subject exclusively to the federal Fair Labor Standards Act (FLSA) and related DOL regulations. This means Tennessee does not provide stronger protections than the federal standard: there is no daily overtime requirement, no state-specific exempt category different from federal rules, and no enhanced state remedies for overtime violations. Tenn. Code Ann. § 50-2-103 incorporates federal wage standards by reference but does not expand overtime protections beyond what the FLSA requires.

All employers in Tennessee—regardless of size—must comply with federal FLSA overtime rules if they are engaged in interstate commerce or have gross annual revenue of $500,000 or more. Many smaller Tennessee employers are also covered under the FLSA's 'enterprise' test. Tennessee does not have a state wage and hour agency separate from federal enforcement; the DOL Wage and Hour Division handles FLSA enforcement throughout Tennessee.

Because Tennessee has no state overtime law, an employee cannot pursue a claim under state law alone. However, an employee can file a federal wage claim through the DOL, can file a complaint with the Wage and Hour Division for investigation, or can bring a private lawsuit under 29 U.S.C. § 216 in federal or state court. Tennessee courts recognize FLSA claims and allow private actions for unpaid overtime, including class actions. The lack of a state law does not weaken protections; it simply means the floor is the federal standard, and no state-specific enhancements apply.

The FLSA white-collar exemptions apply in Tennessee and eliminate overtime obligations for certain employees. Executive exemptions cover managers whose primary duty is managing others, who supervise at least two employees, and whose salary is at least the federal threshold (currently $844/week). Administrative exemptions cover office or non-manual workers whose primary duty involves policy or management decisions, who earn at least the threshold salary, and whose work is directly related to business operations or general management. Professional exemptions cover employees whose work requires advanced specialized knowledge or learning, artistic talent, or teaching, and whose salary exceeds the threshold.

Computer professional exemptions allow overtime-exempt status for certain software engineers and IT professionals earning at least $27.63/hour (or salary equivalent). Outside sales exemptions cover employees whose primary duty is making sales or taking orders outside the employer's place of business, regardless of salary. Highly compensated employees earning more than $107,432 per year may be exempt if they customarily perform exempt duties, even if the salary threshold is met. Independent contractors are not covered by the FLSA and receive no overtime rights.

Other federal exceptions include: domestic service workers employed in a private home (not covered); certain farm workers and agricultural employees; casual babysitters; some seasonal employees; certain government workers (state/local); and commissioned retail or service employees if more than half earnings come from commissions. Tennessee has no state-specific carve-outs or additional exceptions beyond federal law. Misclassification as exempt does not defeat the overtime right; the correct legal standard (the 'duties test,' not job title) applies regardless of how the employer labels the position.

Step 1: Document all overtime violations carefully. Keep copies of time sheets, pay stubs, work schedules, and any communications showing hours worked and compensation paid. Note the dates, hours worked each day, total weekly hours, the overtime rate you were promised or expected, the rate actually paid, and the difference owed. Take screenshots of timekeeping systems and email confirmations. Write a brief timeline of events. Preserve all records for at least three years (the longest statute of limitations for willful violations).

Step 2: File an internal complaint with your employer. Provide written notice (email is acceptable) to your supervisor, HR department, or payroll manager clearly stating which pay periods involved unpaid overtime, how many overtime hours you worked, the overtime rate owed, and the total amount due. Keep a copy and document the date sent. Request written acknowledgment. This creates a record and may prompt corrective action; it also preserves your claim and demonstrates good faith. Some employers will pay voluntarily once they realize the error.

Step 3: File a wage complaint with the appropriate agency. For federal FLSA claims, contact the U.S. Department of Labor Wage and Hour Division, Nashville District Office, located at 1600 McCullough Drive, Nashville, TN 37203, or call 1-866-4-USDOL (1-866-487-3635). You can also file online at www.dol.gov/agencies/whd/contact. Provide your name, contact information, employer name and address, dates of employment, description of overtime work, hours worked and dates, pay rates, and amounts owed. The DOL will assign an investigator who will contact the employer, review records, and issue findings. Investigation typically takes 30–90 days. There is no filing fee.

Step 4: Understand the investigation and negotiation process. The DOL investigator will request time records, payroll documents, and other evidence from your employer. The employer must cooperate and produce accurate records. If the employer lacks records, the burden shifts to the employer to prove hours and compensation. The investigator will calculate back pay owed, plus an equal amount in liquidated damages (doubling the recovery). The DOL will issue a determination letter to both you and the employer. If the employer disagrees, they may request reconsideration, but the DOL's findings are usually final. Many cases settle during the investigation once liability is clear.

Step 5: Consult an employment attorney if the DOL investigation stalls, if the amount is large (over $5,000), or if the employer retaliates. An attorney can file a private lawsuit under 29 U.S.C. § 216 in federal district court in Tennessee (U.S. District Court, Middle District of Tennessee, or Eastern/Western District depending on location) or in Tennessee state court. Private lawsuits can recover back wages, liquidated damages, attorney's fees, and costs. Class actions are possible if multiple employees were similarly underpaid. The statute of limitations is two years for non-willful violations and three years for willful violations. An attorney can also represent you before the DOL at no charge if the DOL investigates. Look for attorneys certified in wage and hour law or labor and employment law.