Overtime Laws in Tennessee

Tennessee follows federal FLSA standards exclusively, with no state-specific overtime laws. Non-exempt employees receive 1.5 times their regular rate for hours over 40 weekly; the November 2024 federal court ruling maintains the $684 weekly salary threshold ($35,568 annually) for exempt classification, invalidating planned increases to $844 and $1,128 weekly. 

Exempt employees must meet three requirements: salary basis test, $684 weekly minimum, and duties test qualifying them as executive, administrative, professional, outside salesperson, computer professional, or highly compensated ($107,432+) roles.

Employers can require mandatory overtime for non-exempt employees with limited ADA and FMLA exceptions, private employers cannot offer comp time instead of cash overtime, and eligible Tennessee employees may claim a federal tax deduction of up to $12,500 annually ($25,000 jointly) on overtime pay through December 31, 2028.

The table below shows key updates impacting overtime in Tennessee in 2026:

Overview of Tennessee Overtime Laws 2026

Since Tennessee does not have its own overtime legislation, employers must adhere to the federal Fair Labor Standards Act (FLSA). Under the FLSA, non-exempt employees must be paid overtime at a rate of 1.5 times their regular pay for any hours worked beyond 40 in a single workweek.

The state does not impose any additional requirements, such as daily overtime pay or double-time pay for working on holidays or weekends. The calculation is based strictly on the 40-hour weekly threshold.

Tennessee does not have its own state-specific overtime laws. Instead, it follows the Fair Labor Standards Act (FLSA). This ensures that all employees are fairly compensated for all hours worked beyond the stipulated 40-hour workweek.

• Overtime rate: Employees are entitled to 1.5 times their regular hourly rate for every hour they work beyond 40 in a workweek.
• Weekly overtime: The federal rule applies. Meaning, non-exempt employees must receive overtime pay after 40 hours of work in a workweek, irrespective of their daily hours.
• Daily overtime: The state does not have any requirement for daily overtime pay.
• Exemptions: Certain employees, such as EAPs (executives, administrative, professionals), and outside sales roles, are exempt under FLSA guidelines.
• Recordkeeping: Employers must maintain accurate records of hours worked and wages paid to employees, according to FLSA standards.

Eligibility for Overtime in Tennessee

In Tennessee, employee eligibility for overtime pay is determined by the FLSA classification of employees. 

In Tennessee, employees are classified as exempt or non-exempt based on the FLSA classification criteria.

• Non-exempt employees are mostly those who work on an hourly basis or draw a salary that is less than the federal standards. They are entitled to receive overtime pay at the rate of 1.5X their regular wages if they work for more than 40 hours in a workweek. They are not entitled to any daily overtime, since the state does not have any such provisions. 
• Exempt employees are those who earn at least $684/week or $35,568/year and meet the duties test criteria. Usually, executives, administrators, and professionals or “white collared” employees belong to this category.

Federal vs. Tennessee Overtime Rules

Since federal regulations govern Tennessee’s overtime rules, all individuals are paid overtime as per the federal FLSA. For instance, Mark works 45 hours a week at $20/hour. According to both federal and state law, he will earn a regular pay for 40 hours ($800) and an overtime pay for the additional 5 hours worked at 1.5X his rate ($150), making his weekly total $950.

The table below shows this alignment between the federal and Tennessee rules. 

Exemptions in Tennessee

Since Tennessee’s laws are identical to the federal FLSA, the definition of exemptions also remains the same. 

• EAPs or executives, administrators, and professional employees who perform duties such as managing a business, department, or multiple departments, have the authority to hire/fire employees, manage business operations, or work in fields demanding advanced knowledge, such as science, learning, innovation, etc.
• Outside salespersons who make sales outside the premises of their employer
• IT professionals who meet specific duty requirements, such as software development, management, etc. 

Employer Obligations and Employee Rights

All employers in the state of Tennessee must strictly comply with the federal FLSA to ensure that all employees are paid correctly and treated fairly.  

• Timely Payment: Employers must pay all earned wages, including overtime, on a pre-defined date.
• Recordkeeping: Employers must maintain a proper and accurate record of all hours worked and wages paid to each employee.
• Workplace Protections: Employers must provide a safe working environment to employees and comply with all applicable health and safety regulations.
• Anti-Discrimination: Employers must adhere to fair employment practices and must not discriminate based on protected characteristics.
• Penalties: If employers fail to comply with overtime laws, they may be subject to penalties, including back wage payment and legal action.