Tennessee FLSA Laws

Ensure Compliance with Tennessee-Specific FLSA Auditing

Federal FLSA: $7.25/hour.
Tennessee Law: No state minimum wage law; defaults to federal $7.25/hour (non-tipped) as of March 10, 2025. Tipped employees: $2.13/hour, with a tip credit of $5.12/hour—employers must ensure tips plus wage meet or exceed $7.25/hour. Local governments prohibited from setting higher rates under state preemption (Tenn. Code Ann. § 50-2-112).
What You Need to Know: Federal rate governs, but failing to bridge tip shortfalls can trigger back wages, double damages, and federal penalties up to $2,653 per violation (2025 rate).

Federal FLSA: 1.5x regular rate for hours over 40/week.
Tennessee Specifics: No state overtime law; follows federal 40-hour rule exclusively. Overtime calculated at 1.5x regular rate (e.g., $10.88/hour for $7.25/hour workers). Exemptions align with FLSA: executive, administrative, professional employees earning ≥$1,128/week, and highly compensated employees ≥$151,164/year (U.S. DOL, January 2025).
Risk: Misclassification or unpaid overtime risks U.S. DOL audits, as Tennessee lacks a state labor agency to enforce wage laws—federal oversight dominates.

Tennessee Rules: Minors under 14 restricted to limited roles (e.g., newspaper delivery); 14–15 capped at 3 hours/school day, 8 hours/non-school day, 18 hours/school week (9 p.m. limit); 16–17 limited to 8 hours/day, 30 hours/school week, unless school/parental consent allows more (Tenn. Code Ann. § 50-5-104). Hazardous jobs (e.g., operating power-driven machinery) banned under 18. Work permits required under 16 outside school hours.
Federal FLSA: Aligns with Tennessee, but state’s tighter 16–17 hour limits and permit rules are stricter—state law prevails where more protective.
Compliance Note: Violations incur state fines up to $1,000 per instance; federal penalties reach $15,629 per instance, or $71,031 if injury/death occurs.

Federal FLSA: 3-year retention of payroll, hours, and employment records.
Tennessee Addition: No state-specific retention law for private employers; federal 3-year rule applies. Child labor employers must retain work permits and age proof for minors under 18 (Tenn. Code Ann. § 50-5-111). Pay statements recommended but not mandated.
Key Detail: Non-compliance with federal rules risks penalties up to $2,653 per violation, with no state buffer to soften enforcement.

Federal: U.S. DOL enforces with back wages, liquidated damages (up to double unpaid wages), and fines up to $2,653 per wage violation (2025 rate). Child labor penalties: $15,629/instance, or $71,031 if injury/death occurs.
Tennessee: No state wage enforcement agency; Tennessee Department of Labor and Workforce Development oversees child labor only, with fines of $50–$1,000 per violation (Tenn. Code Ann. § 50-5-112). Wage disputes rely on federal DOL or private lawsuits, where double damages are common.
Overlap: Federal dominance means compliance hinges on FLSA, but state child labor fines add risk.

CFOs and Managers: Tennessee’s lack of a state minimum wage or overtime law simplifies some payroll, but reliance on federal FLSA and strict child labor rules heighten misclassification risks. Tipped wage enforcement and potential class-action suits (with double damages) loom large, especially in hospitality-heavy regions.
Avoid Costly Mistakes: Proactive FLSA audits tailored to Tennessee’s federal-state blend can prevent costly DOL penalties and litigation.

Stay ahead of compliance risks—align with Tennessee’s labor framework and federal FLSA standards. Contact an expert for a tailored audit now.