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Minimum Wage in Tennessee: No State Law, So $7.25 Applies, Plus the Break Rule

The minimum wage in Tennessee is $7.25 an hour as of October 2026, because Tennessee has no state minimum wage law and the federal rate applies. Employers covered by the federal Fair Labor Standards Act must pay at least $7.25, and tipped staff can be paid $2.13 an hour in cash if tips bring them up to $7.25.

The U.S. Department of Labor's state table lists Tennessee among the states with no minimum wage law of their own. That doesn't mean Tennessee has no wage rules. Its Wage Regulations Act covers breaks, final paychecks, paydays and deductions, and those rules come from the Tennessee Department of Labor and Workforce Development's wages and breaks page, read in October 2026.

What Tennessee employers pay

Pay itemAmount (as of October 2026)Where it comes from
Minimum wage$7.25 an hourFederal Fair Labor Standards Act
Tipped cash wage$2.13 an hourFederal rule
Maximum tip credit$5.12 an hourFederal rule
Tips needed to count as tippedMore than $30 a monthFederal rule

If a tipped employee's cash wage plus tips doesn't reach $7.25 for the hours worked, the employer must make up the difference. If your team shares tips, my guide to tip pooling covers who can be in the pool.

Who the federal rate reaches

Because there's no state fallback, federal coverage decides everything in Tennessee. The federal law covers an enterprise with employees engaged in interstate commerce and annual gross sales of more than $500,000, and it always covers schools, hospitals, health care facilities and public agencies. Individual workers are also covered when their own job involves interstate commerce, such as handling goods from out of state or processing card payments, which reaches most jobs in practice.

A very small, purely local business might sit outside both tests. In that rare case Tennessee has no state rate to fall back on, but my honest advice is to pay $7.25 anyway rather than test the edge of federal coverage.

Tennessee's 30-minute break rule

Here's the rule many people don't expect from a state with no minimum wage law. Tennessee requires a thirty-minute unpaid meal or rest period for any employee scheduled to work six consecutive hours. The exception is a workplace that by its nature gives ample opportunity to rest or take a break, and the department gives food and beverage work and security guards as examples.

Failing to give the 30-minute break is a violation of state law, according to Tenn. Code Ann. 50-2-103(h). There are no other state break requirements. My lunch break laws guide compares Tennessee with the states that require more.

Final paychecks in Tennessee

An employee who leaves or is discharged must be paid in full no later than the next regular payday after they leave, or 21 days after they leave, whichever comes last. The department says there's no exemption under the law. An employer can only hold a final paycheck until a uniform or similar item is returned if the employee has signed a written policy or agreement allowing it.

  1. Work out the employee's last day.
  2. Find the next regular payday after that date.
  3. Count 21 days from the last day.
  4. Pay all wages due by whichever of those two dates is later.

PTO, vacation and other benefits

Tennessee has no law regulating fringe benefits such as paid time off, vacation, sick pay, holiday pay, severance pay or health insurance. Company policy decides them. That also means an employer doesn't have to pay out accrued but unused PTO when someone leaves, unless its own policy or a labour agreement says so. If you're writing that policy now, my PTO policy guide walks through the choices.

Paydays and equal pay

The U.S. Department of Labor's payday table lists Tennessee as semi-monthly. Tennessee's law also bars paying one employee less than another of the opposite sex for comparable skill, effort and responsibility under similar working conditions, with exceptions for seniority, merit and production-based systems. An employer can't fire someone for making a sex discrimination claim, and it can't cut the complainant's pay to fix a gap.

Tennessee and its neighbours

StateMinimum wage (as of October 2026)
TennesseeNo state law, $7.25 federal
AlabamaNo state law, $7.25 federal
MississippiNo state law, $7.25 federal
Kentucky$7.25
Arkansas$11.00
Missouri$15.00
Virginia$12.77

Tennessee sits in the group of Southern states with no minimum wage law at all. Missouri and Virginia, also on its borders, pay far more. My Virginia minimum wage guide covers the neighbour with the biggest gap.

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Tennessee payroll mistakes to avoid

  • Assuming no state wage law means no state rules at all. The Wage Regulations Act still covers breaks, paydays and final pay.
  • Scheduling six-hour shifts with no 30-minute break outside the food, beverage and security exceptions.
  • Paying a leaver on their last day but leaving out wages earned since the last payroll.
  • Holding a final paycheck for a uniform without a signed written agreement.

My verdict

Tennessee's minimum wage is the federal $7.25, full stop. The state rules worth your time are the ones employers forget: a 30-minute break after six scheduled hours, and final pay by the later of the next payday or 21 days. Get those two right and you've covered what Tennessee adds on top of federal law.

Frequently asked questions

What is the minimum wage in Tennessee?

It's $7.25 an hour as of October 2026, the federal rate, because Tennessee has no state minimum wage law.

Does Tennessee have a state minimum wage law?

No. The U.S. Department of Labor lists Tennessee among the states with no minimum wage law of their own.

What is the tipped minimum wage in Tennessee?

It's $2.13 an hour in cash under the federal rule, with tips bringing the total to at least $7.25.

Are breaks required in Tennessee?

Yes, a 30-minute unpaid meal or rest period when an employee is scheduled for six consecutive hours, with limited exceptions.

When is a final paycheck due in Tennessee?

By the next regular payday or 21 days after leaving, whichever comes last.

Do Tennessee employers have to pay out unused PTO?

No, unless the employer's own policy or a labour agreement requires it.

How often must Tennessee employers pay?

The U.S. Department of Labor's payday table lists Tennessee as semi-monthly.

Can a Tennessee employer hold my final paycheck until I return my uniform?

Only if you've signed a written policy or agreement allowing it.

Published and maintained by the Lilach Bullock team, covering marketing, AI and business growth.
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