Overview of Tennessee's Minimum Wage Requirements
As of 2024, the minimum wage in Tennessee is set at $7.25 per hour, which aligns with the federal minimum wage set by the Fair Labor Standards Act (FLSA). This wage applies to all employers in the state, requiring them to pay their employees at least $7.25 per hour for all hours worked. However, there are exceptions for certain employers. For instance, businesses that make less than $500,000 per year may pay a lower wage of $4.25 per hour to employees who regularly receive tips.
Interestingly, Tennessee is one of the five states that have not adopted a state minimum wage, relying instead on the federal minimum wage. As of now, there is no information about any future enacted increases or indexed automatic annual adjustments for Tennessee.
Understanding Local Minimum Wage Variations
It's important to note that some cities and counties in Tennessee may have their own minimum wage laws that are higher than the state and federal minimum wages. However, as of now, 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.
Despite the current minimum wage, it's estimated that a livable wage in Nashville is around $15.50 per hour for a single adult with no children. This wage would allow a worker to afford a modest apartment, food, transportation, and other basic necessities.
Minimum Wage Eligibility and Exemptions
In the state of Tennessee, most employees are eligible for the minimum wage, which is currently set at $7.25 per hour as of 2024. However, there are certain exceptions to this rule. These exceptions include tipped employees, some student workers, and other occupations that are specifically exempt from the minimum wage under state or federal law.
Tennessee does not have any state-specific labor laws relating to the minimum wage or overtime. Instead, the state follows the Federal Minimum Wage and labor law as set by the federal Fair Labor Standards Act. This law applies to the majority of workers in Tennessee.
Minimum Wage Considerations and Compliance Tips
As a food business employer in Tennessee, there are several key minimum wage legal and compliance considerations you need to be aware of. Firstly, Tennessee state law mandates that employees must be provided a thirty-minute unpaid meal or rest period if scheduled for six consecutive hours.
In terms of minimum wage, the basic combined cash and tip minimum wage rate is $7.25. The maximum tip credit against the minimum wage is $5.12, which means employers can count a maximum of $5.12 per hour in tips towards their obligation to pay the minimum wage.
FAQs
- What is the current minimum wage in Tennessee? The current minimum wage in Tennessee is $7.25 per hour as of 2024.
- Are there any exceptions to the minimum wage in Tennessee? Yes, exceptions include tipped employees, some student workers, and other occupations that are specifically exempt from the minimum wage under state or federal law.
- What is the minimum wage for tipped employees in Tennessee? The minimum cash wage that employers are required to pay tipped employees is $2.13 per hour.
Information Source Links
- Tennessee Minimum Wage
- Federal Minimum Wage
- Minimum Wage Exemptions
- FLSA Fact Sheet
- Tennessee Labor Laws
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