Tennessee Minimum Wage 2026: $7.25 an Hour, No State Minimum Wage Law
Tennessee has no state minimum wage law, so the federal $7.25 an hour applies in 2026. Tipped employees get $2.13 cash with a $5.12 tip credit. No increase is scheduled and cities cannot set their own rates.
Tennessee is one of five states with no minimum wage law of its own, so the federal minimum wage of $7.25 per hour applies to Tennessee employers covered by the Fair Labor Standards Act, which is nearly all of them. The rate has not changed since July 24, 2009, and no increase is scheduled. Tipped employees may be paid $2.13 per hour in cash with a tip credit of up to $5.12 under federal rules. Tennessee law prohibits cities and counties from setting a local minimum wage, so a single figure applies from Memphis to Knoxville.
Reviewed September 2026
Rates on this page were checked against the US Department of Labor state minimum wage tables as of July 1, 2026 and the Tennessee Department of Labor and Workforce Development. Tennessee's rate changes only if Congress changes the federal minimum. See our labor law compliance guides for other state rules.
Current Tennessee Minimum Wage
Tennessee, Alabama, Louisiana, Mississippi, and South Carolina have never enacted a state minimum wage statute. In those states the federal Fair Labor Standards Act sets the floor, and the US Department of Labor's Wage and Hour Division, not a state agency, enforces it.
The FLSA covers any enterprise with $500,000 or more in annual sales, plus hospitals, schools, and government agencies regardless of size, plus any individual employee whose work involves interstate commerce. Because handling goods that crossed state lines, taking card payments, or making out-of-state calls all count, almost every Tennessee business with employees is covered. A very small business with purely local sales and no interstate activity could fall outside the FLSA, and in that case no minimum wage law applies at all, but that situation is rare and worth confirming with counsel before relying on it.
The Tennessee Department of Labor and Workforce Development enforces the state's Wage Regulations Act, which covers pay frequency, final paychecks, meal breaks, and wage deductions, but not the rate of pay. Employees with minimum wage complaints are referred to the federal Wage and Hour Division.
Tennessee Minimum Wage vs Federal Minimum Wage
| Tennessee | Federal (FLSA) | |
|---|---|---|
| Standard hourly minimum | No state law; $7.25 federal applies | $7.25 |
| Tipped cash wage | Federal rules; $2.13 | $2.13 |
| Maximum tip credit | $5.12 | $5.12 |
| Youth wage | Federal rules; $4.25 for under-20s in the first 90 days | $4.25 |
| Annual adjustment | None | None |
| Local rates allowed | No, preempted by state law | Not applicable |
| Meal break | 30 minutes unpaid for shifts of 6 hours or more (state law) | Not required |
The one area where Tennessee is stricter than federal law is breaks: the Wage Regulations Act requires a 30-minute unpaid meal period for employees scheduled to work six consecutive hours or more, unless the nature of the business allows ample opportunity to rest.
Tipped Minimum Wage in Tennessee
With no state tipped wage, the federal rules apply. Employers may pay a cash wage of $2.13 per hour and claim a tip credit of up to $5.12, as long as the employee's tips plus cash wages equal at least $7.25 for every hour in the workweek. If they do not, the employer owes the difference.
Federal conditions apply in full:
- The employer must inform the employee of the tip credit before using it.
- Employees keep all tips except contributions to a valid tip pool among employees who customarily receive tips; managers and supervisors are excluded.
- When a tipped employee spends substantial time on non-tipped work, the tip credit does not apply to that time under the 2021 federal dual-jobs rule.
- Overtime for tipped employees is calculated on $7.25, so the overtime rate is $10.88 with the tip credit applied to each overtime hour.
Because Tennessee's hospitality sector in Nashville, Memphis, and the Smokies employs a large tipped workforce, the tip credit rules are the most common source of wage claims in the state.
Tennessee Minimum Wage Increase Schedule
| Effective date | Rate in Tennessee | Event |
|---|---|---|
| July 24, 2007 | $5.85 | Federal step 1 |
| July 24, 2008 | $6.55 | Federal step 2 |
| July 24, 2009 | $7.25 | Federal step 3, still in force |
| 2010 to 2026 | $7.25 | No change |
Bills to create a Tennessee minimum wage are filed regularly in the General Assembly and have not advanced out of committee. A federal increase would apply in Tennessee automatically.
Local Minimum Wages in Tennessee
None. Tennessee Code Annotated 50-2-112 prohibits local governments from requiring private employers to pay a minimum wage above the federal or state rate. Nashville, Memphis, Knoxville, and Chattanooga all use $7.25. Local governments may set higher pay for their own employees, and Metro Nashville has a living wage policy for its workforce, but that policy does not bind private businesses.
Who Is Covered and Who Is Exempt
Since the FLSA governs, its coverage and exemption rules decide who must receive $7.25. Common exemptions from federal minimum wage or overtime include:
- Executive, administrative, professional, computer, and outside sales employees who meet the duties tests and the $684 per week salary threshold
- Certain agricultural workers on small farms
- Casual babysitters and companions for the elderly
- Employees of seasonal amusement or recreational establishments that operate no more than seven months a year
- Some employees of small local newspapers and switchboard operators of small telephone companies
Paying a salary does not by itself make an employee exempt. See exempt vs non-exempt employees for how the tests work.
Overtime and the Minimum Wage
Tennessee has no state overtime law. The federal rule applies: 1.5 times the regular rate for hours over 40 in a workweek, with no daily overtime.
For a minimum wage employee working 45 hours:
- 40 hours at $7.25 = $290.00
- 5 overtime hours at $10.88 = $54.38
- Weekly gross pay = $344.38
Run other rates through the overtime calculator, and see overtime pay laws by state.
What a Minimum Wage Worker Earns in Tennessee
| Schedule | At $7.25 |
|---|---|
| 40-hour week | $290.00 |
| Month (173.33 hours) | $1,256.64 |
| Year (2,080 hours) | $15,080 |
Gross pay before taxes. Convert any rate with the salary to hourly calculator, and see what gross pay includes. In practice, market wages for most hourly roles in Tennessee's larger cities are well above $7.25, so the minimum wage mainly affects tipped work and entry-level positions in smaller markets.
Common Minimum Wage Mistakes in Tennessee
Tennessee's lack of a state minimum wage statute leads some employers to assume there are no rules at all. The errors that generate most federal Wage and Hour Division claims in the state:
- Assuming small businesses are exempt. The $500,000 enterprise threshold is only one path to coverage. Any employee who handles interstate goods or payments is individually covered, which brings most small restaurants, shops, and contractors under the FLSA.
- Skipping the meal break. Tennessee's 30-minute break rule for shifts of six hours or more is state law and applies even though the wage rate is federal. Missed breaks are a common complaint.
- Taking a tip credit without notice or records. Employers must tell tipped employees about the credit in advance and be able to show that tips brought each employee to $7.25 every week.
- Paying overtime on $2.13. Overtime for tipped employees is 1.5 times the full $7.25, or $10.88, before the tip credit is applied.
- Misclassifying hourly staff as salaried exempt. A salary of $684 a week is necessary but not sufficient; the duties tests must also be met.
Employer Compliance Checklist
- Pay at least $7.25 for every hour worked unless counsel has confirmed the business is outside FLSA coverage.
- Give tipped employees the federal tip credit notice, pay at least $2.13 in cash, and verify each workweek that tips bring them to $7.25.
- Calculate overtime on the full $7.25 for tipped employees, not on $2.13.
- Provide a 30-minute unpaid meal break to employees scheduled for six or more consecutive hours, as Tennessee's Wage Regulations Act requires.
- Pay wages at least semimonthly and follow the state's final paycheck timing rules.
- Record hours worked with a time card calculator or time tracking software, and keep payroll records for three years under the FLSA.
- Post the federal FLSA minimum wage poster and the Tennessee Wage Regulations Act notice.
Complete Hour Records for Tennessee Employers
HiveDesk tracks clock-in and clock-out times, meal breaks, and overtime for hourly teams, giving Tennessee employers the records the federal Wage and Hour Division expects. $5/user/month, 14-day free trial.
Frequently Asked Questions
What is the minimum wage in Tennessee in 2026?
$7.25 per hour, the federal minimum wage. Tennessee has no state minimum wage law.
Is Tennessee raising the minimum wage in 2027?
No. No state or federal increase is scheduled.
What is the tipped minimum wage in Tennessee?
$2.13 per hour in cash under federal rules, with a tip credit of up to $5.12. Tips must bring the employee to $7.25.
Why does Tennessee not have a minimum wage law?
The General Assembly has never enacted one. Bills to create a state minimum wage are filed most years but have not passed, so the federal FLSA sets the floor.
Can Nashville set its own minimum wage?
Not for private employers. Tennessee law preempts local minimum wage ordinances.
Does Tennessee require meal breaks?
Yes. State law requires a 30-minute unpaid meal break for employees scheduled to work six consecutive hours or more. This is one of the few areas where Tennessee goes beyond federal law.
Who enforces minimum wage in Tennessee?
The US Department of Labor's Wage and Hour Division, because there is no state minimum wage statute for the state agency to enforce.
How much is Tennessee minimum wage per year?
$15,080 for a full-time employee working 2,080 hours at $7.25, before taxes.
For a comparison with every other state, see minimum wage by state.