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HOURLY WAGE INDEX

Let’s talk wages in Tennessee

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$7.25

What is the minimum wage in Tennessee?

The Tennessee minimum wage is currently set at $7.25 per hour, which is the same as the federal minimum wage set by the Fair Labor Standards Act (FLSA). This means that employers in Tennessee are required to pay their employees at least $7.25 per hour for all hours worked. 

However, the Tennessee minimum wage can change depending on certain employers. For example, those that make less than $500,000 per year, may pay a lower wage of $4.25 per hour to employees who regularly receive tips. Additionally, some cities and counties in Tennessee may have their own minimum wage Tennessee laws that are higher than the state and federal minimum wages.

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$26.94

What is the average wage in Tennessee?

The average wage in Tennessee is around $26.94 per hour. This varies depending on the industry and occupation. According to the Bureau of Labor Statistics (BLS), the highest paying industries in Tennessee are the finance and insurance industry, the professional, scientific, and technical services industry, and the healthcare and social assistance industry. The highest paying occupations in Tennessee include physicians and surgeons, dentists, and pharmacists.
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$30.61

What is the living wage in Tennessee?

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$7.25

What is the minimum wage in Nashville, Tennessee?

The city of Nashville, Tennessee does not have a minimum wage law that is higher than the state and federal minimum wage of $7.25 per hour. However, this may change in the future as there have been efforts to raise the minimum wage in Nashville to a higher rate.

Wages aren’t everything!

While pay is one of the main factors that hourly employees consider when choosing to join (or stay at) a company, it’s not the end all be all. Research shows that advancement opportunities, supportive management, and schedule flexibility are all incredibly important as well.

Want to learn more about this trend? We dive deep into the data behind which perks and benefits matter most to hourly workers. Check out our full conversation with expert Sara Wasserteil of Cara Collective.

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A guide to hourly labor laws in Tennessee

Verified by Legal Counsel Brooke Davis

  • Standard Minimum Wage: No state minimum wage. Adheres to the federal minimum wage of $7.25 under the Fair Labor Standards Act (29 US Code § 206).
  • Tipped Minimum Wage: $2.13, totaling at least minimum wage with tips. (29 US Code § 203) (DoL Table).
  • Overtime: Hours exceeding 40 in a fixed week are overtime, paid at 1.5 times the regular rate (29 US Code § 207) (DoL). 
  • Meal Breaks: A 30-minute meal break for shifts of 6+ hours (Tenn. Code § 50-2-103). Federal law allows unpaid, non-working, bonafide meal breaks over 30 minutes; exceptions may apply (29 C.F.R. § 785.19) (DoL).
  • Rest Breaks: No state or federal law requires rest breaks. Breaks lasting 5–20 minutes must be paid (29 C.F.R. § 785.18).
  • Wage Deductions: Only those required by law, such as taxes, and those authorized by the employee in writing. Third-party deductions benefitting the employer may not reduce wages below the applicable minimum (Tenn. Code § 50-2-110) (29 C.F.R. § 4.168) (29 US Code § 203).
  • Final Paychecks: The later of the next regular payday or 21 days later (Tenn. Code § 50-2-103)
  • Wage Payment Frequency: At least once per month (Tenn. Code § 50-2-103)
  • Paid Sick Leave: No state/federal law. Policies are determined by the employer or through collective bargaining agreements (DoL).
  • Paid Family and Medical Leave: No paid leave. Up to 12 unpaid weeks in one year for eligible employees (FMLA).
  • Maximum Daily and Weekly Hours for Children Under 16:
    • School session: No working during school hours; up to three hours per day and 18 hours per week.
    • Non-school session: Up to eight hours per day and 40 hours per week.
    • Working hours: Only between 7 a.m. and 7 p.m., extended until 9 p.m. June 1 through Labor Day (Tenn. Code § 50-5-104) (29 C.F.R. § 570.35).
  • Maximum Daily and Weekly Hours for Children 16 and 17: Not during required school hours. Not from between 10 p.m. and 5 a.m. preceding a school day, extended to midnight with parental consent (Tenn. Code § 50-5-105) (DoL) (29 C.F.R. § 570.35).

Frequently asked questions

What is the difference between gross wages and net wages?

It's important to remember that the Hourly Wage Index data above reflects gross wages, or the amount of money an employee earns before accounting for payroll deductions like taxes, benefits, or wage garnishments. Due to variability in tax rates across locations, slightly lower gross wages in a certain location might result in higher take home pay, or vice versa.

What is a good hourly wage?

This question is a difficult one to answer, as a "good hourly wage" is highly subjective according to experience, work responsibilities, cost of living, and other factors. We recommend using Hourly Wage Index data as a starting point. Once you have established a baseline for certain positions, do further research into similar businesses in your area.

Lastly, consider surveying your employees. They're the best resource to help you know what is a good hourly wage, what competitive pay looks like in your location, and how competitive wages change in your industry over time.

Offering competitive pay is one of my top priorities—what other resources do you have that might help?

We know that getting applicants to pay attention to your business can be extremely challenging, and that offering competitive pay is a huge part of that. Wages aren’t everything, however! Applicant experience is another important factor that can help set you apart from your competition. A few examples include:

  • Short, easy to understand job descriptions
  • Mobile-friendliness
  • Quick communication
  • Streamlined interview stages
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