Blog · Payroll Management
Tennessee Minimum Wage 2026: Rates & Rules
Tennessee's 2026 minimum wage is the federal rate of $7.25 per hour, since the state has no minimum wage law of its own, per the U.S. Department of Labor.
Because Tennessee defaults entirely to federal wage and hour law, employers here have one less layer of state-specific rules to track than businesses in states with their own minimum wage statutes. But that does not mean payroll compliance is simple, especially for companies with employees in Tennessee and other states with different rates and rules.
Tennessee Minimum Wage Rate Table
| Jurisdiction | 2026 Minimum Wage |
|---|---|
| Tennessee (no state law) | $7.25 (federal rate applies) |
| Federal minimum wage | $7.25 |
Overtime Rules in Tennessee
Tennessee has no separate state overtime statute, so employers follow federal FLSA rules: non-exempt employees earn 1.5x their regular rate of pay for all hours worked over 40 in a single workweek. There is no daily overtime trigger in Tennessee.
Paid Sick Leave and Family Leave
Tennessee does not require employers to provide paid sick leave, and there is no state paid family and medical leave (PFML) program. Employers that want to offer these benefits do so voluntarily, and should document the policy clearly in an employee handbook to avoid confusion.
Tipped Wages and Local Ordinances
Tennessee follows the federal tip credit framework under the FLSA. Because Tennessee has no state minimum wage law, employers should not assume any local ordinance changes the wage floor without confirming it first. Always check current tipped-wage and local ordinance details with the state labor office contacts before setting pay rates.
What This Means for Payroll Compliance
Even in a federal-minimum state like Tennessee, payroll compliance is not "set it and forget it." Employers with workers across multiple states need to apply the correct minimum wage and overtime rule to each work location, every pay period. Getting it wrong exposes the business to back-wage claims, liquidated damages, and Department of Labor penalties.
This is exactly the kind of multi-state complexity BEG's managed payroll service is built to absorb. We register in each state where you have employees, apply the correct rate and overtime rule automatically, and keep your filings current as rules change.
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BEG manages payroll at $25-$45 per employee per month, all-inclusive. Get an instant cost comparison for your business.
Frequently Asked Questions
What is the minimum wage in Tennessee in 2026?
Tennessee has no state minimum wage law, so employers must pay the federal minimum wage of $7.25 per hour, per the U.S. Department of Labor.
Does Tennessee have its own overtime law?
No. Tennessee follows federal FLSA overtime rules: non-exempt employees earn 1.5x their regular rate for hours worked over 40 in a workweek.
Does Tennessee require paid sick leave?
No. Tennessee does not mandate paid sick leave or a state paid family and medical leave program. Employers may offer these benefits voluntarily.
Can Tennessee cities set a higher minimum wage?
Tennessee does not have a statewide minimum wage law, and local minimum wage ordinances are not a standard feature of the state's wage framework. Always confirm current rules with the Tennessee Department of Labor and Workforce Development.
What should multi-state employers with Tennessee workers watch for?
Employers with staff in Tennessee and other states need to apply the correct rate per work location, since neighboring states may have higher minimums or different overtime triggers.
Anthony leads payroll solutions at Business Executive Group, a national managed payroll firm serving businesses across industries. BEG manages payroll at $25-$45 PEPM, all-inclusive, with deep expertise in compliance, multi-state filing, and industry-specific payroll requirements. Get instant pricing at beghr.com.
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