Employment and labor laws in Tennessee [Updated 2026]

Key takeaways

• Tennessee has no state minimum wage law. The federal rate of $7.25/hr applies under the FLSA to most employers and employees.

• HB 1034 (effective July 1, 2026) bans non-compete agreements for employees earning under $70,000 in annualized total compensation. Non-competes are void and unenforceable for this workforce.

• The Tennessee Human Rights Commission (THRC) was dissolved effective July 1, 2025. Discrimination complaints under the Tennessee Human Rights Act now go to the Civil Rights Enforcement Division (CRED) at the Tennessee Attorney General's Office.

• Tennessee has no statewide pay transparency law. Proposed bills have not passed as of mid-2026.

• Tennessee is a right-to-work state: employees cannot be required to join a union or pay dues as a condition of employment.

• There is no state paid sick leave mandate in Tennessee. Private employers are not required to offer it.

• Tennessee operates under at-will employment: either party can end the employment relationship at any time without cause.

Employment laws are essential in ensuring workers are treated fairly and protected from harm at work.

In Tennessee, employment laws match many federal guidelines, but there are also state-specific laws that govern employment and hiring practices. Tennessee is known as a business-friendly state with few stringent regulations for the employer-employee relationship.

Employment vs. labor law: What's the difference?

In the United States, two different types of law are often referred to interchangeably. Labor law is related to unions and negotiations between unions and employers. Employment law concerns the relationship between individual employees and their employers.

• Employment law encompasses wage and hour laws, workplace discrimination and harassment, wrongful termination, employee benefits and leave policies, and unsafe work conditions.

• Labor law governs unions, including formation, operation, collective bargaining, strikes, lockouts, elections, representation, and finances.

Wages and hours in Tennessee

The Tennessee Department of Labor and Workforce Development oversees regulating wages and hours, including enforcing the Tennessee Wage and Hour Act and the Tennessee Child Labor Act.

Wages earned by the first of the month must be paid by the 20th of the following month. Wages earned by the 16th day of the month must be paid by the fifth day of the next month.

Minimum wage in Tennessee

Under the Fair Labor Standards Act (FLSA), most Tennessee employees are eligible for the federal minimum wage rate of $7.25 per hour, since the state doesn't have its own minimum wage law.

Tennessee employers follow federal tip credit rules: tipped employees can be paid $2.13/hr as long as tips bring them to at least $7.25/hr.

Overtime pay in Tennessee

Tennessee overtime rules are regulated by the federal FLSA, as no state-specific overtime laws exist. Non-exempt employees must be paid at 1.5 times their regular rate for any time worked over 40 hours in a workweek.

Pay transparency in Tennessee

Pay transparency is becoming more prevalent worldwide to ensure equal pay for equal work and prevent wage inequality based on gender, age, and race.

The state of Tennessee has no statewide pay transparency laws. The Tennessee General Assembly has introduced pay transparency bills, but they haven't passed.

Non-compete agreements in Tennessee

HB 1034, effective July 1, 2026, bans non-compete agreements for employees earning less than $70,000 in annualized total compensation. Any non-compete clause for such workers is void and unenforceable as a matter of Tennessee law. Employers should audit existing agreements and update offer letters and employment contracts accordingly.

Breaks and rest periods in Tennessee

Employees who work for six consecutive hours are required by state law to take an unpaid break of at least 30 minutes (Tenn. Code Ann. § 50-2-103(h)), which cannot be scheduled during or before the first hour of the shift. If their job permits them to take a meal break on their own, they may not need to take this required break.

Tipped employees who primarily serve food or drinks can opt out of the 30-minute unpaid meal period by submitting a waiver request that meets statutory requirements.

Employees have the right to take unpaid breaks to express milk for their infant child. Employers must provide a private location, other than a toilet stall, for them to do so.

Leaves of absence in Tennessee

Paid leave isn't required for employees in Tennessee, but they may be entitled to unpaid leave in certain circumstances.

Vacation time

In Tennessee, employers aren't obligated to offer vacation benefits, paid or unpaid. If such benefits are offered, they should be outlined in the employment contract.

Family and medical leave

Employers with 50+ employees must comply with the Family and Medical Leave Act (FMLA), which allows workers up to 12 weeks of unpaid leave annually for qualifying events.

Military leave

Under USERRA, private or public employers can't discriminate against employees because of their military service. Once a service member returns from leave, they must be fully reinstated to their position.

Per Tennessee state law, eligible public employees can receive 20 working days of paid military leave every calendar year.

Jury duty leave

In Tennessee, employers with five or more employees must pay employees for time spent on jury duty, except for temporary workers employed for less than six months.

Voting leave

Tennessee employers must provide up to three hours of paid time off for voting unless polls are open at least three hours before or after the employee's regular shift.

Holiday leave

Private employers in Tennessee aren't required to give employees paid or unpaid holiday time off.

Veterans Day

Employers must provide Veterans Day leave to former or current members of the US armed forces or reserves called into active duty, unless it would cause significant disruption.

Pregnancy disability leave in Tennessee

Tennessee doesn't have a dedicated pregnancy disability leave law. Per the Tennessee Pregnant Workers Fairness Act, companies with more than 14 employees must offer reasonable accommodations for pregnancy-related conditions.

Companies with at least 100 full-time employees at a single location must follow the Tennessee Family Leave Act, which mandates up to four months of maternity leave.

Paid sick leave in Tennessee

Employers in Tennessee aren't mandated by state law to offer paid or unpaid sick leave to their employees.

Workplace safety in Tennessee

In Tennessee, workplace safety is regulated by the Tennessee Occupational Safety and Health Administration (TOSHA).

TOSHA enforces occupational safety and health standards for general industry, construction, and agriculture. Employers must adhere to all applicable TOSHA standards and undergo inspections to ensure compliance.

Tennessee's Child Labor Act safeguards minors aged 14 to 17 who start working.

Discrimination and harassment laws in Tennessee

Laws against employment discrimination protect not only current and former employees but also job applicants.

In Tennessee workplaces, the Tennessee Human Rights Act (THRA) is the governing law for harassment and discrimination. Note: effective July 1, 2025, the Tennessee Human Rights Commission (THRC) was dissolved. Discrimination complaints under the THRA now route through the Civil Rights Enforcement Division (CRED) at the Tennessee Attorney General's Office. Discrimination based on age, race, disability, sex, religion, color, veteran status, or national origin is prohibited.

The Tennessee CROWN Act applies to all employers and bans discrimination based on hairstyles including braids, locs, and twists.

No statewide law protects employees from discrimination based on sexual orientation and gender identity in Tennessee. However, four cities have ordinances that protect local government workers.

Tennessee also falls under federal civil rights laws, including the Civil Rights Act, the Age Discrimination in Employment Act, the Americans with Disabilities Act, and the National Labor Relations Act (NLRA).

Each state has different requirements for sexual harassment training; Tennessee doesn't mandate any training for private companies. However, it is advisable to provide education to your workforce.

Unions in Tennessee

Employees form a labor union to advocate for better working conditions. The National Labor Relations Act (NLRA) allows workers to organize, bargain collectively, take collective action, or abstain from union activity.

• Organize or become a part of a union to have the ability to negotiate with their employer

• Negotiate collectively and choose representatives among employees

• Take action to improve working conditions, such as filing complaints or striking

• Abstain from becoming a member of a union

Per Tennessee's right-to-work laws, employers are prohibited from retaliating against employees based on their membership or non-membership in any labor union. Additionally, employers can't mandate participation in a labor union or compel payment of union dues as a requirement for employment.

How Rippling supports Tennessee labor law compliance

Tennessee's employment law environment is evolving — with new limits on non-compete agreements under HB 1034, the transition from the THRC to the new Civil Rights Enforcement Division (CRED), and workers' compensation requirements for employers with five or more employees. Rippling helps Tennessee employers build the HR systems to keep pace.

• Rippling HR Services: helps Tennessee employers manage HR administration, onboarding documentation, and compliance workflows, including support for Tennessee's anti-discrimination requirements and workers' compensation enrollment.

• Rippling Payroll: automates Tennessee payroll processing, including SUI contributions, federal tax withholding, overtime calculations, and wage compliance.

• Rippling HRIS: centralizes employee records and compliance documentation, supporting audit readiness for CRED, the DOL Wage and Hour Division, or EEOC inquiries.

• Rippling Time and Attendance: tracks hours worked, leave balances, and scheduling to support FMLA obligations and workers' compensation leave management for Tennessee employers.

• Rippling Headcount Planning and Compensation Bands: centralizes headcount planning and compensation management so employers can maintain pay equity, set consistent salary ranges, and stay ahead of pay transparency laws.

• Rippling LMS: delivers ready-to-use compliance and harassment training courses, helping employers meet training best practices and reduce legal risk across their workforce.

FAQs about Tennessee labor and employment laws