Unpaid Wages in Tennessee: How to Recover What You Are Owed

The Fair Labor Standards Act (FLSA), 29 U.S.C. § 201 et seq., applies to employers with employees engaged in interstate commerce or in certain industries. The FLSA requires employers to pay at least the federal minimum wage ($7.25 per hour) and overtime compensation (time and one-half) for hours worked over 40 in a workweek. Employees can recover unpaid wages, an equal amount as liquidated damages, and reasonable attorney's fees and costs through either the Department of Labor's Wage and Hour Division or by filing a private lawsuit in federal court.

The statute of limitations for FLSA claims is 2 years from the date wages were due, or 3 years if the violation was willful. The EEOC does not enforce FLSA claims; instead, the Department of Labor's Wage and Hour Division investigates complaints and can pursue enforcement. Employees can also file a private action as an individual or on behalf of similarly situated employees in a collective action. Employers cannot require employees to waive FLSA rights, and retaliation for asserting FLSA rights is prohibited.

Tennessee law on unpaid wages is codified primarily in Tennessee Code Annotated § 34-7-2-109, which requires employers to pay all earned wages by the next regular payday or within 15 days of the end of the pay period, whichever occurs first. Section 34-7-2-110 establishes that employers are liable for unpaid wages and provides that employees may recover the full amount of unpaid wages plus interest at the legal rate (currently 9.5% per annum in Tennessee).

Tennessee law is generally less protective than the FLSA in one key way: Tennessee has no state minimum wage law and follows the federal minimum wage of $7.25 per hour. However, Tennessee does require prompt payment of wages, and failure to pay constitutes a wage theft violation. The state applies the FLSA's overtime rules by incorporation, meaning employees covered under federal law are also protected under state law.

Under Tennessee law, the statute of limitations for civil wage claims is 3 years under the general contract statute of limitations (Tennessee Code Annotated § 28-1-101). This is longer than the federal 2-year FLSA lookback, providing employees a wider recovery window. Employers covered under Tennessee law include all employers with employees in the state, regardless of size; there is no employer size threshold as there is under some federal laws.

Remedies under Tennessee state law include recovery of the full unpaid wage amount plus pre-judgment interest, and if the case proceeds to litigation, the employee may also recover court costs. Unlike the FLSA, Tennessee law does not automatically provide for liquidated damages or attorney's fees in unpaid wage cases, though attorney's fees may be recoverable under certain contract theories or if the defendant acted in bad faith. Tennessee employees can pursue claims through the Department of Labor & Workforce Development complaint process or file a civil lawsuit in state court.

Tennessee law contains several important exceptions and limitations on unpaid wage recovery. The primary exception is that Tennessee law does not provide automatic liquidated damages (a doubling of the award) for unpaid wages as the FLSA does; employees must prove the violation occurred and recover the actual amount owed plus interest. At-will employment does not shield employers from unpaid wage obligations—even at-will employees are entitled to all earned wages.

Salary employees may face defenses if an employer can show that deductions were permitted under federal FLSA regulations or by valid agreement. For example, employers may deduct for authorized garnishments, tax withholdings, or employee-requested deductions, and in some cases legitimate disciplinary suspensions (though Tennessee is restrictive on this). Independent contractors are generally not protected under either Tennessee wage law or the FLSA, as they are not employees.

The "administrative exemption" under the FLSA (which applies in Tennessee) may exclude certain administrative, executive, and professional employees from overtime protections if they meet specific salary and duties tests. Employees classified as independent contractors rather than employees are not entitled to unpaid wage protections, though misclassification is common and the burden is on the employer to prove independent contractor status.

Union employees governed by collective bargaining agreements may have different wage payment terms negotiated into their agreement, though the agreement cannot waive minimum wage or overtime protections entirely. Agricultural workers and certain other categories may have modified protections, though most agricultural workers are still covered under federal and state wage laws. Employees who voluntarily waive wages or agree to deferred compensation outside of legally permitted scenarios may have reduced claims.

Step 1: Document Everything. Keep detailed records of all hours worked, dates, rates paid, and dates wages were promised to be paid. Photograph or save copies of pay stubs, emails from your employer about pay, text messages confirming wage promises, and any written agreements about compensation. Create a personal log showing dates worked, hours (if hourly), tasks completed, and the amount you believe is owed. If you were told wages would be paid by a certain date and they were not, note that date and amount. This documentation becomes critical evidence if you need to file a claim or lawsuit.

Step 2: Internal Complaint and Written Notice. Contact your employer's payroll, HR, or management in writing (email is acceptable) demanding payment of unpaid wages and specifying the exact amount owed, the dates it was earned, and the date it should have been paid under company policy or law. Request a written response within 5-7 business days. Keep a copy of your demand letter. Document your employer's response or refusal. This step creates a paper trail and gives the employer an opportunity to correct the violation without legal involvement. If the employer ignores your demand or refuses to pay, proceed to Step 3.

Step 3: File with the Tennessee Department of Labor & Workforce Development. Visit the TDLWD website at www.tn.gov/labor-workforce or call 615-741-6642 to file a wage complaint. You will need to provide: your name, contact information, employer name and address, dates you worked, hours worked (if hourly), regular rate of pay, total amount owed, dates the wages should have been paid, and a brief description of why wages were withheld. You can file online, by mail, or in person at a regional office. The TDLWD will investigate at no cost to you. There is no legal filing deadline to complain to the TDLWD, but filing sooner preserves evidence. The investigation typically takes 2-4 weeks, though complex cases may take longer.

Step 4: TDLWD Investigation Process. After you file, the TDLWD's Division of Labor Standards will contact your employer and request payroll records, timekeeping documentation, and an explanation. The department may request you provide additional documentation or clarification. The investigator will interview both you and the employer. The TDLWD will determine whether a violation occurred and, if so, will order the employer to pay the unpaid wages. If the employer refuses to comply with the TDLWD order, the department may refer the matter to the Tennessee Attorney General's office for enforcement. The TDLWD investigation is administrative and does not result in a lawsuit, but it provides an official determination that can be used as evidence in a later civil lawsuit if needed.

Step 5: File a Civil Lawsuit (if TDLWD Action is Insufficient). If the TDLWD investigation does not result in payment or if you want to recover interest, court costs, and potentially attorney's fees, file a civil lawsuit in Tennessee state court (District Court for smaller amounts or Circuit Court for larger claims). You have 3 years from the date the wages were due to file. Consult an employment law attorney who handles wage and hour claims. The attorney can file in the appropriate county court, serve the employer, and pursue discovery (requesting documents and testimony). The case may settle during litigation or proceed to trial. Additionally, you can file a federal lawsuit under the FLSA in federal court if the violation also involves federal minimum wage or overtime violations; you have 2 years from the date wages were due (3 years if willful). An employment law attorney can advise whether federal court is advantageous based on the facts.