Overview of Hiring Laws in Tennessee

Tennessee employment laws align closely with federal standards while maintaining select state-level protections that reflect the state’s conservative approach to employment regulation. The state’s Tennessee Department of Labor and Workforce Development, Tennessee Human Rights Commission (THRC), and the Equal Employment Opportunity Commission (EEOC) oversee most employment standards, including wage and hour rules, anti-discrimination protections, new hire reporting, and workplace safety.

One of the most notable aspects of Tennessee employment law is its reliance on the federal minimum wage with no state-level increase since 2009, combined with state anti-discrimination protections that apply to employers with 8+ employees—lower than the federal threshold of 15 employees. Tennessee provides an employer-friendly regulatory environment while maintaining baseline worker protections through both state and federal law.

Category	Federal Law (FLSA)	Tennessee Law
Meal Periods	No requirement for employers to provide meal breaks.	30-minute unpaid meal break required for 6+ hour shifts (except where business nature provides ample opportunity for breaks).
Rest Breaks	Short breaks under 20 minutes must be paid.	Follows federal standard. Short breaks under 20 minutes must be paid.
Minimum Wage	$7.25 per hour (federal minimum).	$7.25 per hour; matches federal minimum wage (unchanged since 2009).
Tipped Minimum Wage	$2.13 per hour.	$2.13 per hour; employers may take a tip credit up to $5.12, but total earnings must reach $7.25.
Youth Training Wage	$4.25 per hour for workers under 20 during first 90 days.	$4.25 per hour follows federal standard.
Employer Coverage for Anti-Discrimination	Varies: typically 15+ employees; age discrimination at 20+ employees.	8+ employees for race, creed, color, religion, sex, age, and national origin discrimination.
Enforcement	Overseen by the U.S. EEOC and Department of Labor.	Enforced by the THRC, Department of Labor and Workforce Development, and federal agencies.

These rules reflect Tennessee’s approach of utilizing federal standards as the baseline while providing targeted state-level protections.

Tennessee Hiring Laws

Anti-Discrimination and Equal Opportunity Laws

The Tennessee Human Rights Act (THRA), codified at Tennessee Code Annotated Section 4-21-401, prohibits discrimination in employment based on race, creed, color, religion, sex, age, and national origin. The THRA applies to employers with 8 or more employees, which is significantly lower than federal Title VII’s 15-employee threshold. Why the 8-employee threshold? Tennessee determined that anti-discrimination protections should extend to smaller workplaces, recognizing that discrimination can occur regardless of company size.

The Tennessee Disability Act (TDA), codified at Tennessee Code Annotated Section 8-50-103, mirrors much of the federal Americans with Disabilities Act but provides broader coverage. The TDA prohibits employment discrimination based on physical, mental, or visual disability and applies to employers with 8 or more employees. Importantly, the TDA does not require employers to provide reasonable accommodations for disabilities unless required under federal law, though employers should consult federal ADA requirements for accommodations guidance.

Exceptions to Tennessee’s anti-discrimination coverage include religious institutions, exclusively social clubs not organized for profit, domestic service workers (personal housekeepers, babysitters, etc.), and certain small businesses with revenue under $500,000 not involved in interstate commerce.

Employers are required to maintain written policies addressing non-discrimination and equal employment opportunity. Employers should note that Tennessee Code Section 49-6-5102 allows employers to decline to use an employee’s preferred name or pronoun if inconsistent with their legal name or sex—a unique provision reflecting Tennessee’s specific policy choices.

Pay Equity and Minimum Wage

Tennessee’s minimum wage is $7.25 per hour, which matches the federal minimum wage. The state has not increased its minimum wage since 2009, meaning Tennessee has maintained the same wage rate for over 15 years. This represents significant erosion of purchasing power through inflation compared to neighboring states. For context, Arkansas (to the west) has a minimum wage of $11 per hour, while Missouri (to the north) has set its minimum wage at $13.75 per hour—nearly double Tennessee’s rate.

For the most current minimum wage information, visit the Tennessee Department of Labor and Workforce Development.

Recent legislative activity: In 2025, Tennessee lawmakers made another push to raise the minimum wage. Rep. Justin Pearson (D-Memphis) and Senator introduced bills calling for a $20 per hour wage or the federal rate, whichever is higher (HB 1216 and SB 1190). However, both bills failed in committee in March 2025, dying in the Banking & Consumer Affairs and Senate Commerce panels. Prior attempts included Senate Bill 2670 (proposing $15/hour in 2022) and SB 940 (proposing $12/hour in 2023-2024), both of which stalled in committee.

Tipped employees: The minimum cash wage for tipped employees is $2.13 per hour. Employers may take a tip credit of $5.12 per hour if tips, combined with the base wage, reach at least $7.25 per hour. Employers must ensure tipped workers always earn at least the state minimum wage.

Youth/Training wage: Employers may pay $4.25 per hour to workers under 20 during their first 90 consecutive calendar days of employment, following federal standards.

Tennessee follows federal equal pay requirements. Under Tennessee Code Annotated Section 50-2-202, employers may not pay men and women differently based on sex. Employers should retain records demonstrating the basis for any wage differences between employees of different sexes performing comparable work (a broader standard than federal “equal work”).

Background Checks and Criminal History Rules

Tennessee does not have a statewide ban-the-box law for private employers. Employers may inquire about an applicant’s criminal history at any point during the hiring process. However, expunged or sealed records require special handling—if an applicant’s criminal record has been expunged or sealed, the applicant may truthfully state that the conviction did not occur.

When using third-party background screening services, the Fair Credit Reporting Act (FCRA) applies. Employers must obtain written consent before running a background check and provide adverse action notices if denying employment.

I-9 and Employment Eligibility Requirements

Like all U.S. states, Tennessee employers are required to verify the identity and employment eligibility of new hires using Form I-9. Employers must complete Form I-9 within three business days of a new hire’s start date and retain forms for three years after hire or one year after termination, whichever is later.

E-Verify requirements: Employers with 50 or more employees must use E-Verify to confirm employment eligibility of new hires. This federal system verifies that employees are authorized to work in the United States.

State-Specific Hiring Rules

Tennessee enforces additional hiring-related requirements that employers should be aware of:

Law/Regulation	Key Requirement
At-Will Employment	Tennessee follows an “at-will” employment policy, which means that either party can terminate the employment relationship without notice or cause, unless stated otherwise in an employment contract or collective bargaining agreement.
Right-to-Work Status	Tennessee is a “right-to-work” state, giving employees autonomy to decide on labor union membership. Employees cannot be required to join or pay union dues as a condition of employment.
New Hire Reporting	Employers must report all newly hired employees to the Tennessee New Hire Reporting Program within 20 days of hire or re-hire date. A newly hired employee is defined as one who has not previously been employed by the employer, or was previously employed but has been separated for at least 60 consecutive days.
Meal Breaks	Employers must provide a 30-minute unpaid meal break for employees scheduled to work 6 consecutive hours, except in workplace environments that, by their nature of business, provide ample opportunity to take breaks.
Child Labor Laws	Tennessee maintains specific restrictions on youth employment including prohibited hazardous occupations and hour restrictions based on age and school enrollment status. Minors under 16 have stricter hour limitations than those 16-17 years old.
Volunteer Rescue Squad Worker Protection	Under T.C.A. § 4-21-408, employers may not terminate employees who are volunteer rescue squad workers because they are absent or late responding to emergencies before their shift begins.

Penalties for Non-Compliance in Tennessee

Tennessee takes non-compliance seriously. Employers who fail to follow state and federal hiring laws can face significant financial and legal consequences.

Wage and Hour Violations: Employers who violate minimum wage, overtime, and wage payment laws are subject to civil penalties enforced by the U.S. Department of Labor. Violations can result in back wages, liquidated damages (double the unpaid wages), and attorney fees. Under Tennessee Code Section 50-2-110, third-party deductions benefitting the employer may not reduce wages below the applicable minimum.
Discrimination Violations: If the THRC or EEOC finds that an employer violated anti-discrimination laws, it may order remedies including reinstatement with back pay, compensatory damages, front pay, and attorney fees. Under the THRA, employees may file discrimination claims within 180 days of the alleged discriminatory act with the THRC or pursue immediate civil lawsuits. Under federal law, claims must be filed with the EEOC within 300 days.
Employee Lawsuits: Employees can file complaints with the Tennessee Human Rights Commission or the EEOC, or pursue civil lawsuits for discrimination or retaliation. A unique aspect of THRA is that employees may file civil lawsuits immediately without exhausting administrative remedies, unlike federal law.
FCRA Violations: Improper background check procedures can result in fines of $1,000+ per applicant, with significantly higher exposure in class-action lawsuits.
Form I-9 Violations: USCIS fines can range from $281 to $2,789 per form for paperwork errors, and $678 to $27,894 per violation for knowingly hiring unauthorized workers (as of 2025).
New Hire Reporting Non-Compliance: Failure to report a new employee can result in a fine of $20 for each employee not reported. Additionally, failure to report can delay child support enforcement and expose employers to civil penalties.
Meal Break Violations: Employers violating the 30-minute meal break requirement for 6+ hour shifts face state labor enforcement action and potential civil liability.

Notice and Documentation HR Professionals Need to Know

HR professionals must maintain the following key documents to stay compliant:

Completed Form I-9s for All New Hires- Federal law requires all employers to verify an employee’s identity and eligibility to work in the U.S. via Form I-9. These forms must be completed within three business days of hire and stored securely for the required retention period: either three years after the hire date or one year after termination, whichever is later. For additional guidance on I-9 compliance, consult the USCIS I-9 Handbook.
New Hire Reporting to Tennessee Department of Labor- All new hires and rehires must be reported to the Tennessee New Hire Reporting Program within 20 days of their hire date. Employers who submit reports electronically must submit in two monthly transmissions not more than 16 days apart. Reports should include the employee’s name, address, Social Security number, date of birth, date of hire, and the employer’s FEIN. Submit reports online through TNnewhire.com or by mail/fax.
Background Check Documentation- Employers must retain written consent forms, background check reports, and copies of any adverse action notices provided to applicants. These records should be kept for at least one year and demonstrate compliance with FCRA requirements.
Written Policies on Non-Discrimination and Equal Opportunity- Employers are required to display clear, written policies outlining their commitment to equal employment opportunity and non-discrimination. These policies should be included in employee handbooks and posted in visible areas of the workplace to ensure accessibility for all staff, as required by the Tennessee Human Rights Act.
Retention of Job Applications and Interview Notes- Tennessee employers are advised to retain job applications, interview notes, and hiring records for a minimum of two years. This documentation can be critical if hiring decisions are later questioned or challenged in discrimination complaints.
Wage and Hour Records- Employers must maintain accurate records of hours worked, wages paid, and deductions for each employee. The Tennessee Department of Labor and Workforce Development requires these records to be kept for at least three years and made available during audits or investigations.
Posters and Workplace Notices- Certain notices, such as those covering minimum wage, discrimination, workers’ compensation, unemployment insurance, and meal break requirements must be displayed prominently in the workplace. HR should routinely verify that all state and federal posters are up-to-date and clearly visible to employees. Posters are available through the Tennessee Department of Labor and Workforce Development.

Got questions?

What is the minimum wage in Tennessee?

Tennessee’s minimum wage is $7.25 per hour, matching the federal minimum wage. This rate has remained unchanged since 2009. For the latest information, visit the Tennessee Department of Labor and Workforce Development. While no state increase is currently in effect, legislators continue to propose increases annually—most recently HB 1216 and SB 1190 (both proposing $20/hour), which failed in March 2025.

Can employers ask about criminal history in Tennessee?

Yes. Tennessee does not have a statewide ban-the-box law for private employers, so employers may ask about criminal history at any point during the hiring process. However, if using third-party background check services, employers must comply with FCRA requirements, including obtaining written consent and providing adverse action notices.

What is the rule for meal breaks in Tennessee?

Tennessee requires employers to provide a 30-minute unpaid meal break for employees scheduled to work 6 consecutive hours, except in workplace environments that, by their nature of business, provide ample opportunity to take breaks (such as certain retail settings). This is a mandatory requirement and differs significantly from federal law, which has no meal break requirement.

When should new hires be reported in Tennessee?

Employers must report all new hires and rehires to the Tennessee New Hire Reporting Program within 20 days of their hire date. Reports can be submitted online through TNnewhire.com or by mail/fax.

What happens if an employer violates hiring laws?

Non-compliance can lead to civil penalties, employee lawsuits, back-pay orders with liquidated damages (potentially double the amount owed), and fines. Repeat or serious violations may result in investigations by the Tennessee Department of Labor and Workforce Development or THRC, and potentially class-action litigation by multiple affected employees.

Is Tennessee an at-will employment state?

Yes. Tennessee follows an “at-will” employment policy, which means that either party can terminate the employment relationship without notice or cause, unless stated otherwise in an employment contract or collective bargaining agreement. However, termination cannot be for discriminatory reasons or in retaliation for protected activities.

What protections apply to employees in smaller employers?

If your workplace has between 8 and 14 employees, you receive state-level anti-discrimination protections under the THRA and TDA that you would not have under federal law alone, which only covers employers with 15+ employees. This means employees in Tennessee’s smaller organizations have meaningful state-level protection for discrimination claims.

Are there upcoming changes I should prepare for?

While no changes are currently enacted, Tennessee lawmakers consistently propose minimum wage increases. Employers should monitor legislative activity, particularly around session time (typically January-April). Additionally, the federal Raise the Wage Act of 2025 is under consideration at the national level, proposing to raise the federal minimum wage to $17 per hour by 2030. If passed, this would affect Tennessee employers.