Blog · Payroll Management
Tennessee Minimum Wage 2026: Rates & Rules
The Tennessee minimum wage in 2026 is the federal $7.25, because Tennessee has no state minimum wage law and Tenn. Code 50-2-112 stops cities and counties from imposing a higher one on private employers. Tipped staff take the federal $2.13 cash wage. BEG runs Tennessee payroll at $45 per employee per month, live in 3 to 5 business days.
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
| Source of the rate | Tennessee has no minimum wage statute. The federal Fair Labor Standards Act supplies the $7.25 floor, and it reaches only FLSA-covered employers and employees. [U.S. DOL state minimum wage table] |
|---|---|
| Local ordinances | State law bars a local government from requiring a private employer to pay more than the federal or state minimum wage, whether as a condition of doing business or of contracting with the local government. [Tenn. Code 50-2-112] |
| Tipped employees | Federal rules govern: a $2.13 cash wage with a tip credit up to $5.12, and the employer makes up any shortfall to $7.25 in the workweek. [U.S. DOL tipped minimum wage table] |
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.
Managed Payroll, Handled.
BEG manages payroll at $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.
Can a Tennessee city require a living wage from its own contractors?
No. Tenn. Code 50-2-112 reaches both routes: a local government may not require a private employer to pay above the federal or state minimum wage as a condition of doing business, and may not impose it as a condition of a contract with the local government either.
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 $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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