Tennessee MINIMUM WAGES

Tennessee State Minimum Wage for 2025

As of January 1, 2024, the minimum wage in Tennesse is $7.25 per hour, which is the same as the Federal wage applicable across the United States. The minimum wage for tipped employees stands at $2.13 per hour. However, there are certain exceptions for small businesses earning less than $500,000 annually, allowing them to pay tipped employees $4.25 per hour. 

The Fair Labor Standards Act (FLSA) also regulates the overtime laws in Tennessee. It requires that employees receive 1.5 times their regular pay rate for hours worked beyond 40 in a week. 

In the next section, let’s discuss the city-wise breakdown of the minimum wages for tipped and non-tipped employees. 

Minimum Wages in Tennessee Cities

The federal rate of $7.25 per hour for tipped employees and $2.13 for non-tipped employees applies uniformly across all cities in Tennessee.  

Here is the breakdown of the top 30 cities in Tennessee: 

Threshold For Employees Exempt

The Fair Labor Standards Act (FLSA) classifies employees as exempt and non-exempt: 

• Non-exempt employees: These employees typically earn lower wages and depend on minimum wage and overtime benefits. Any changes to the federal or state minimum wage rate directly impact their income. 

• Exempt employees: Employees earning a higher salary, typically in executive, administrative, or professional roles, are not eligible for overtime pay. Changes in minimum wage laws do not directly affect their compensation. 

On April 2023, 2024, the U.S. Department of Labor (DOL) announced its final rule for the new minimum salary threshold for exempt employees, executive, administrative, and professional (EAP) employees. This law is defined under 29 CRF part 541 and revises the previous laws. Here is a breakdown of the scheduled changes implemented by the law: 

To maintain their exempt status, EAP employees must meet the following requirements: 

• Be paid a fixed salary; 
• Be paid at least a specified weekly salary level; and  
• Primarily perform duties of EAP employees defined by the Department of Labor (DOL). 

In the next section, let’s discuss the history of minimum wage changes in the state of Tennessee. 

Historical Data of Tennesse Minimum Wages 

The state’s minimum wage rate has remained constant since 2009 at $7.25 per hour. Prior to this, it was $6.55 in 2008 and $5.85 in 2007. Since the beginning, the state has depended on the federal standards set by the FLSA (Fair Labor Standards Act), leading to a rise in Tennessee’s minimum wage to $0.25 per hour in 1938. 

Here is a table summarizing all the minimum wage changes witnessed by the state from 1963 to 2023. 

* – Under the FLSA, the two rates shown in 1968, 1970, and 1976 reflect the former multiple-track minimum wage system in effect from 1961 to 1978.

Source: https://www.dol.gov/agencies/whd/state/minimum-wage/history

Exemptions in Minimum Wages of Tennessee 

The following categories of employees are exempt from receiving the federal minimum wage rate in Tennessee: 

• Tipped employees 
• Student employees working below 20 hours a week 
• Young employees under 20 years old for the first 90 days of their employment 
• Employees with disabilities