Minimum Wage in Tennessee
Tennessee (TN) · Minimum wage · Last reviewed September 2026
Tennessee minimum
$7.25 / hr
Federal floor
$7.25 / hour
As of
September 2026
Federal vs. State Minimum Wage
The federal minimum wage is $7.25 per hour and has been since July 2009. When a state (or city) sets a higher minimum, the higher rate is what employers must pay. When the state rate is lower or nonexistent, the federal $7.25 applies to employees covered by the FLSA.
As of September 2026, the Tennessee (TN) minimum wage is about $7.25 per hour, the same as the federal floor. Rates are revisited regularly (often each January), so confirm the current figure with the official source below before you run payroll.
Most Tennessee employers follow the state rate, but always confirm whether any local ordinance sets a higher minimum where you operate.
Tipped Employees
Tipped workers can be paid a lower cash wage as long as tips bring them up to at least the full applicable minimum wage. The federal tipped cash wage is $2.13 per hour, but many states require a higher tipped wage, and a few require the full minimum with no tip credit. Tennessee employers should verify the tipped rules that apply locally.
Staying Compliant
Because minimum-wage rates change and can differ by city, the safest approach is to check the official rate at the start of each year and whenever you hire in a new locality. Keep accurate time records so you can always show that pay met or exceeded the minimum for every hour worked.
What $7.25 an Hour Actually Comes to in Tennessee
At $7.25 an hour, a 40-hour week is $290.00 before deductions, which is roughly $15,080 a year for someone working full time all year. A 30-hour week comes to $217.50, and a 20-hour week to $145.00.
Tennessee does not set a rate above the federal floor, so the federal $7.25 applies to covered employees. That figure has not moved since 2009, so in practice most employers here pay well above it to hire at all; the legal minimum and the market minimum are different numbers.
Minimum wage is a floor on the regular rate, not on the paycheck. Deductions for uniforms, tools or till shortages cannot legally push someone below it, which is where most minimum-wage claims actually originate rather than in the headline rate.
Tennessee Labor-Law Snapshot
Tennessee's minimum wage is $7.25/hour (the federal floor). At that rate, overtime runs about $10.88/hour, and Tennessee permits a tip credit toward the minimum wage for tipped employees.
For Tennessee employers these rules interact with timekeeping: accurate, audit-logged hours drive overtime, final pay, and break records. Tennessee requires meal breaks on longer shifts and does not mandate paid rest breaks; a final paycheck is due by the next regular payday or within 21 days, whichever is later when an employee resigns. Confirm current Tennessee figures with the state labor office before relying on any single number.
What Tennessee Employers Should Keep on File
Federal law requires employers to keep payroll records for at least three years, and the records used to calculate pay, such as time cards and work schedules, for at least two. Several states require longer. The practical standard is simple: if a former employee filed a claim tomorrow, could you evidence every hour you paid and every hour you did not?
The records that matter are the daily start and end times, the total hours for each workweek, the regular rate and any premium, all additions and deductions, and the pay period the payment covers. Keeping the underlying punches matters more than keeping the summary, because a total nobody can trace back is not evidence.
Where the record is missing or unreliable, the employee's reasonable recollection is generally accepted, and the employer carries the burden of disproving it. That is the single strongest argument for an automatic time clock over a paper sheet reconstructed at the end of the week.
How Tennessee Compares with the States Next Door
Tennessee borders 8 states, and stays at the federal floor here. Arkansas, Missouri and Virginia set a minimum above the federal $7.25; Alabama, Georgia, Kentucky, Mississippi and North Carolina sit at the federal $7.25.
Minimum wage across the line: Alabama $7.25, Arkansas $11.00, Georgia $7.25, Kentucky $7.25, Mississippi $7.25, Missouri $15.00, North Carolina $7.25, Virginia $12.77. Tennessee is at $7.25.
If you employ people on both sides of the Tennessee border, the stricter of the two states usually governs each worker, based on where the work is actually performed rather than where your business is registered.
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Official Sources
More Tennessee Guides
Minimum Wage in Other States
Tennessee Minimum Wage: Frequently Asked Questions
What is the minimum wage in Tennessee?
As of September 2026, the minimum wage in Tennessee is about $7.25 per hour, matching the federal floor. Confirm the current figure before running payroll, as rates change.
Can Tennessee employers pay tipped workers a lower wage?
Yes, a lower cash wage is allowed as long as tips bring the employee up to the full applicable minimum wage. Some states require a higher tipped cash wage.
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