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Hourly Wage Index
Discover how your pay practices stack up against other regions, positions, and industries. 
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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$19.98

What is the average wage in Tennessee?

The average wage in Tennessee is around $19.98 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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$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.

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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We're here to help!

A Workstream hiring specialist can help you identify high impact ways to improve your applicant experience, and even help you determine what is a good hourly wage for your location and business.

Sign up for a free 30 minute chat with a hiring specialist now