Tennessee Labor Laws 2026: A Complete Guide for HR & Employer Compliance

Accurate as of May 7, 2026. This guide is informational and not legal advice. For specific situations, consult licensed Tennessee employment counsel.

Tennessee runs a federal-default wage and hour framework alongside several distinctive state statutes. The minimum wage matches the federal $7.25 floor, overtime tracks the FLSA, and there is no state mandate for paid sick leave or paid family leave. Where the state has chosen to act, the rules are unusual: a 21-day final-pay deadline, a four-month parental leave entitlement at employers with 100 or more workers, the strictest healthcare provider non-compete framework in the South under TCA 63-1-148, the Tennessee Lawful Employment Act's mandatory E-Verify rule for employers with 35 or more employees, and a state Pregnant Workers Fairness Act passed in 2020.

2025 reshaped Tennessee's civil rights enforcement architecture. The Tennessee Human Rights Commission was dissolved effective July 1, 2025, and discrimination complaints now go to the Civil Rights Enforcement Division (CRED) inside the Tennessee Attorney General's Office. The Voluntary Portable Benefits Plan Act expanded options for independent contractor benefit programs. A push to enact a $15 state minimum wage failed in the General Assembly. The 2026 session continued to reject minimum wage and paid sick leave proposals while keeping the Tennessee Human Rights Act, the Tennessee Disability Act, and the Tennessee Public Protection Act in place.

This guide walks through every wage, hour, leave, civil rights, hiring, and safety rule that applies to Tennessee employers in 2026. It includes statute citations, dollar amounts, and effective dates pulled from primary sources. It also points HR teams toward an employee relations platform built for documenting complaints, investigations, and remediation in a way that holds up to a CRED charge, an EEOC investigation, or a Tennessee Department of Labor wage claim.

The 2026 Tennessee Employment Law Updates HR Teams Should Know First

Tennessee's 2025 and 2026 changes hit civil rights enforcement, contractor classification, and continued debate on minimum wage and paid leave. The short list HR teams should plan around:

• Tennessee Human Rights Commission dissolved (effective July 1, 2025): Discrimination complaints under the Tennessee Human Rights Act, the Tennessee Disability Act, and the Tennessee Pregnant Workers Fairness Act now route through the Civil Rights Enforcement Division (CRED) at the Tennessee Attorney General's Office. Complaint filing windows under the Tennessee Human Rights Act remain unchanged at 180 days.
• Voluntary Portable Benefits Plan Act (passed 2025): Allows public or private entities to voluntarily contribute to portable benefit plans for independent contractors as a form of compensation. The law does not require contractor reclassification.
• State minimum wage push rejected: SB 1190, SB 1357, and earlier SB 2670/HB 2793 to raise the Tennessee minimum wage to $15 by 2026 did not pass. Tennessee continues to match the federal $7.25 floor with no scheduled increases.
• Paid sick leave still not required: The 2025 and 2026 sessions left state and local paid sick leave mandates off the books. Local ordinances are preempted under TCA 50-1-104.
• TCA 63-1-148 healthcare non-compete framework: Tennessee's healthcare provider non-compete framework, originally enacted in 2007, remains in force. Two-year maximum duration, ten-mile or county geographic limit, and rebuttable presumption of reasonableness for compliant agreements.
• TLEA / E-Verify (effective January 1, 2023): Private employers with 35 or more full-time equivalent employees under the same FEIN must use E-Verify. Employers with fewer than 35 employees may choose between E-Verify or maintaining authorized identity documents.

The detail below covers each topic in turn, plus the federal and state baselines every Tennessee employer carries.

Tennessee Minimum Wage in 2026

Tennessee has no state minimum wage statute. The federal Fair Labor Standards Act (FLSA) controls, which means the state floor is the federal floor.

What is the Tennessee minimum wage in 2026?

$7.25 per hour, the same as the federal FLSA. The rate has not changed since the federal increase took effect in July 2009, and Tennessee has not added a state-level rate above it.

Are local minimum wages allowed?

No. TCA 50-1-104 preempts local minimum wages and most other local employment laws. Nashville, Memphis, Knoxville, and Chattanooga cannot enact a higher minimum wage than the state floor for private-sector workers.

What is the tipped minimum wage?

Tennessee follows the federal tipped wage of $2.13 per hour. The employer must make up any difference if cash wages plus tips do not reach $7.25 in a given pay period. The federal rule barring managers and supervisors from sharing in a tip pool applies in Tennessee.

Is there a youth minimum wage?

Yes. The federal FLSA youth opportunity wage of $4.25 per hour applies for the first 90 calendar days of employment for workers under 20. Tennessee follows the federal rule.

What recent legislation has tried to raise the rate?

Several bills in recent sessions, including SB 2670/HB 2793 in the 112th General Assembly and SB 1190 and SB 1357 more recently, would have raised the Tennessee minimum wage incrementally toward $15. None of those bills became law. Employers planning multi-year compensation programs should treat $7.25 as the operating floor for the foreseeable future.

Overtime Rules in Tennessee

Tennessee defaults to federal FLSA rules for overtime. There is no state overtime statute and no daily overtime trigger.

When must Tennessee employers pay overtime?

For nonexempt employees, 1.5 times the regular rate for all hours worked over 40 in a workweek. The workweek is a fixed and regularly recurring period of 168 hours under federal law, and Tennessee follows that definition.

What is the exempt salary threshold?

$684 per week ($35,568 per year), the federal FLSA threshold currently in force. Tennessee does not impose a higher salary threshold for executive, administrative, or professional exemptions. Highly compensated employees must earn at least $107,432 annually under the federal rule.

Does the duties test still apply?

Yes. Salary alone does not qualify a worker as exempt. The employee must also perform exempt duties under one of the FLSA categories: executive, administrative, professional, outside sales, or computer employee. Federal courts in Tennessee apply the standard duties analysis.

Is comp time allowed in lieu of overtime?

Not for private-sector employees. Comp time in lieu of cash overtime is permitted only for public agencies under federal FLSA rules. Tennessee private employers must pay cash overtime for hours over 40.

Pay Frequency, Wage Statements, and Wage Payment Rules

Tennessee's wage payment statute is at TCA 50-2-103, with detailed rules on pay frequency, payment methods, and final paycheck timing.

How often must Tennessee employees be paid?

At least twice per month (semimonthly) under TCA 50-2-103. Wages earned during the first half of the month must be paid no later than the fifth day of the following month, and wages earned during the second half must be paid no later than the twentieth day of the following month. More frequent pay (weekly, biweekly) is permitted.

What payment methods are allowed?

• Cash
• A negotiable check or draft payable without discount
• Electronic automated fund transfer (direct deposit)
• Credit to a prepaid debit card issued through a network system that allows the employee to withdraw or transfer the full amount on payday without fee

What does Tennessee require on a wage statement?

Tennessee does not have a detailed itemized wage statement statute. Practical employer practice, and what the Tennessee Department of Labor and Workforce Development expects, includes: hours worked, gross wages, all deductions, net pay, the start and end of the pay period, and the employer's name. Pay stub records should be retained for at least three years.

Are direct deposit or pay card programs allowed?

Yes. Direct deposit is allowed if the employee has a designated account. Pay cards are permitted if the employee can withdraw the full amount on each payday without fee. The employee's consent must be documented.

Final Paycheck Rules in Tennessee

Tennessee's final pay rule is unusual. The 21-day deadline kicks in alongside the next regular payday rule, with the employee taking whichever comes later. A documented separation workflow keeps the timing defensible.

When are final wages due in Tennessee?

Final wages are due by the next regular pay day following separation, or 21 days after separation, whichever occurs last. The rule comes from TCA 50-2-103 and applies whether the employee resigned or was discharged.

Does final pay include vacation or PTO?

Yes, if the employer's written policy or applicable contract provides for payout. Final wages must include any vacation pay or other compensatory time owed under company policy or labor agreement. Tennessee law does not require employers to provide vacation pay, but if the policy provides for accrual and payout, the obligation is enforceable.

Are use-it-or-lose-it vacation policies allowed?

Yes, with clear documentation. Tennessee courts enforce written policies that condition payout on continued employment or that limit carryover. Document the policy in the handbook and have employees acknowledge it on hire.

What is the penalty for late final pay?

Tennessee does not impose statutory liquidated damages or a daily continuing wage penalty. The Department of Labor and Workforce Development can investigate, mediate, and order payment. Employees can also pursue a private claim for unpaid wages, including under federal FLSA where the unpaid wages relate to minimum wage or overtime.

Can an employer offset final pay against money owed by the employee?

Yes, with limits. TCA 50-2-110 permits offsets of money owed by the employee to the employer (cash advances, equipment, uniforms) if certain conditions are met, including written authorization from the employee. The offset cannot reduce wages below the federal minimum wage. Document every authorization carefully; informal handshake offsets do not survive a wage claim.

Wage Deductions in Tennessee

Tennessee permits a wider range of wage deductions than many states, but written authorization remains the practical floor.

What deductions are permitted?

• Statutorily required deductions (federal and state taxes, garnishments, child support)
• Employee-authorized deductions in writing for benefits, insurance premiums, retirement contributions, charitable giving, and similar voluntary withholdings
• Offsets for cash advances, equipment, uniforms, and similar items under TCA 50-2-110, with written authorization
• Court-ordered deductions for student loans, judgments, and other lawful obligations

Can employers deduct for cash shortages or breakage?

Generally not without written authorization. Tennessee does not have a state-specific statute on cash drawer or breakage deductions, but the federal FLSA still requires that the deduction not drop the employee below the federal minimum wage. Audit handbook policies that promise unilateral deductions for cash shortages or broken merchandise; many such clauses are unenforceable without a properly executed authorization.

What about union dues?

Tennessee is a right-to-work state under TCA 50-1-201 and the 2022 constitutional amendment. Employers cannot require employees to pay union dues as a condition of employment. Voluntary dues check-off is permitted with the employee's written authorization.

Tennessee Right-to-Work Law (TCA 50-1-201)

Tennessee's right-to-work law is one of the strongest in the country, embedded both in statute and in the state constitution.

What does the law prohibit?

TCA 50-1-201 through 50-1-204 prohibits an employer from making union membership, abstention from membership, or payment of any union charges a condition of employment. The provisions apply to private-sector employers and labor organizations.

What did the 2022 constitutional amendment do?

On November 8, 2022, Tennessee voters approved Constitutional Amendment 1 by roughly a 2-to-1 margin in all 95 counties. The amendment adds the right-to-work principle to the Tennessee Constitution, making future legislative repeal substantially harder. The constitutional protection layers on top of the existing TCA framework.

What does right-to-work not change?

Unions can still organize, bargain collectively, represent workers in grievances, and strike. The National Labor Relations Act and federal labor law continue to govern most other union activity. Tennessee right-to-work removes mandatory union financial support as a condition of employment; it does not block union activity.

Are there penalties for violation?

Knowing violations are a Class A misdemeanor. Civil remedies include injunctive relief, damages, and attorney's fees for affected workers.

Tennessee Human Rights Act (THRA): Discrimination, Harassment, and Retaliation

The Tennessee Human Rights Act sits at TCA 4-21-101 et seq. and is the state's primary anti-discrimination statute. After July 1, 2025, enforcement runs through the Civil Rights Enforcement Division (CRED) at the Tennessee Attorney General's Office, not the Tennessee Human Rights Commission (which was dissolved).

Which employers does the THRA cover?

Both public and private employers with 8 or more employees in the State of Tennessee. The THRA threshold is materially lower than federal Title VII's 15-employee threshold, which means many Tennessee small employers face state-level obligations even when they fall below federal coverage.

What classes are protected under the THRA?

• Race
• Creed
• Color
• Religion
• Sex
• Age
• National origin

Pregnancy and childbirth status are read as a sex-based protection under both the THRA and Title VII. Sexual orientation and gender identity are not enumerated state protected classes, but the federal Bostock decision reads sex under Title VII to cover both characteristics for employers with 15 or more employees.

How do Tennessee employees file a discrimination complaint after July 2025?

Through the Civil Rights Enforcement Division (CRED) at the Tennessee Attorney General's Office, by paper filing or the agency's online portal. CRED dual-files most charges with the EEOC under the worksharing agreement, so a single complaint can preserve both state and federal claims.

What are the filing windows?

• THRA charges with CRED: 180 days from the alleged discriminatory act
• EEOC charges (Title VII): 300 days under the worksharing agreement
• Direct THRA lawsuit: 1 year from the alleged discriminatory act

What remedies are available?

Back pay, reinstatement, compensatory damages, attorney's fees, and equitable relief. Punitive damages are available in some circumstances under the THRA. Federal Title VII damages caps apply to dual-filed claims.

What documentation does CRED ask for first?

The applicant's file, the offer or rejection record, the personnel file, performance reviews, comparable-employee data, internal complaint records, and any investigation file. A documented investigation workflow closes the documentation gap that often frustrates employers in the first weeks of a CRED investigation.

Tennessee Disability Act (TDA)

The Tennessee Disability Act, codified at TCA 8-50-103 and 4-21-101 et seq., is Tennessee's state analogue to the federal Americans with Disabilities Act. The TDA has wider coverage than the ADA on the employer-size axis.

Which employers does the TDA cover?

Employers with 8 or more employees. The federal ADA applies starting at 15 employees, so the TDA reaches a larger pool of small Tennessee employers.

What does the TDA prohibit?

Discrimination on the basis of physical, mental, or visual disability. The TDA includes protection against discrimination based on the use of a guide dog by a person with a visual impairment.

Does the TDA require reasonable accommodation?

Tennessee courts have held that the TDA does not include a stand-alone duty to provide reasonable accommodation that mirrors the ADA. Employers covered by the federal ADA still owe accommodation under federal law. For non-ADA-covered Tennessee employers (8 to 14 employees), the TDA primarily prohibits disparate treatment rather than imposing a separate accommodation duty. Counsel should be involved on accommodation questions in this size range.

Tennessee Pregnant Workers Fairness Act

The Tennessee Pregnant Workers Fairness Act, signed by Governor Bill Lee on June 22, 2020 and effective October 1, 2020, requires reasonable accommodation for pregnancy, childbirth, and related medical conditions.

Which employers does the Tennessee PWFA cover?

Employers with 15 or more employees. The threshold matches the federal PWFA (effective June 27, 2023), but Tennessee's statute has been on the books longer and added a state-court forum.

What accommodations must employers provide?

• Making existing facilities readily accessible and usable
• More frequent, longer, or flexible breaks
• A private place for expressing milk
• Modified food or drink policies
• Modified seating or allowing the employee to sit more frequently
• Assistance with manual labor and limits on lifting
• Temporary transfer to a vacant position
• Job restructuring or light duty
• Acquiring or modifying equipment
• Modified work schedules
• Flexible scheduling for prenatal visits

What is not required?

An employer is not required to hire new employees, discharge an existing employee, transfer another employee with more seniority, promote a non-qualified employee, or construct a permanent dedicated lactation space. Compensation for additional or longer break periods is not required unless the employee uses time that would otherwise be paid.

What is the interactive process under the Tennessee PWFA?

Like the federal PWFA, the Tennessee statute requires good-faith interactive engagement to identify reasonable accommodations. Document each step in writing. Build a standard accommodation request form into the policy and have HR own the process. Pair it with a harassment prevention workflow so a pregnancy accommodation request never collides with a separate hostile-work-environment claim.

Tennessee Parental Leave Act (TCA 4-21-408)

Tennessee's parental leave statute is one of the most generous in the South. It runs alongside the federal FMLA but provides longer leave for covered employers.

Which employers must provide Tennessee parental leave?

Employers with 100 or more full-time employees at the worksite. The state threshold is materially higher than the FMLA's 50-employee threshold, which means many Tennessee employers covered by FMLA are not covered by the state parental leave act.

How much leave does the Tennessee Parental Leave Act provide?

Up to four months of leave for adoption, pregnancy, childbirth, and nursing an infant. Both male and female employees qualify. Leave may be paid or unpaid at the employer's option.

Who is eligible?

Employees who have worked for the employer for at least 12 months. The employee must give the employer at least three months' advance notice of the leave, except in cases of medical emergency requiring immediate leave.

How does the Tennessee Parental Leave Act interact with FMLA?

The federal FMLA provides 12 weeks; the Tennessee PLA provides up to 4 months (about 16-17 weeks). The federal law does not preempt the longer state benefit. Where both apply, the employer must allow the longer leave; FMLA-covered weeks count toward the four-month total. An updated employee handbook should track both leave entitlements clearly.

Is reinstatement required?

Yes. The employee must be reinstated to the same or a substantially similar position with the same pay, benefits, and seniority. Failure to reinstate without a legitimate, non-discriminatory business reason can support a state-law claim.

Paid Sick Leave and Paid Family Leave in Tennessee

Tennessee has no state paid sick leave mandate, no state paid family and medical leave program, and a state preemption rule that blocks local ordinances on private employers.

Is paid sick leave required for Tennessee private employers?

No. Tennessee has not enacted a paid sick leave statute, and TCA 50-1-104 preempts local ordinances that would require private employers to provide paid sick leave. Voluntary policies are governed by the employer's handbook.

Is there a state paid family and medical leave program?

No. Tennessee has not enacted a state PFML program, unlike California, Washington, Oregon, Colorado, Connecticut, Massachusetts, New Jersey, New York, and Rhode Island. Federal FMLA provides job-protected unpaid leave for covered employees.

What about state employees?

Tennessee state government employees are covered by paid family leave and sick leave policies through the state Department of Human Resources. The Nashville Metro government also offers paid family leave to its own employees. These benefits do not extend to private employers.

What is the practical posture for multi-state Tennessee employers?

Most multi-state employers with operations in Tennessee plus PSST states (such as Illinois, Michigan, Minnesota, or PSST cities like Chicago) extend a unified leave policy rather than running a separate Tennessee-specific policy. Document the leave policy clearly in the handbook and apply it consistently. For neighboring multi-state programs, see the Georgia labor laws guide, the North Carolina labor laws guide, and the Florida labor laws guide.

Tennessee Meal and Rest Break Rules

Tennessee requires a meal break for shifts of six consecutive hours, a relatively narrow rule compared with most states.

What is required under TCA 50-2-103(h)?

A 30-minute unpaid meal or rest period must be provided to employees scheduled to work six consecutive hours, unless the workplace environment provides ample opportunity for breaks during the shift. Restaurants and food service operations have a typical exception under the "ample opportunity" carve-out.

Are rest breaks (other than the 30-minute meal) required?

Tennessee does not require additional paid rest breaks. The federal FLSA also does not require rest breaks, but breaks of 20 minutes or less must be paid as work time when offered. Breaks of 30 minutes or more are unpaid as long as the employee is fully relieved of duties.

What about minor employees (under 18)?

Minor employees scheduled to work six consecutive hours must receive a 30-minute unpaid meal break. The break must occur during the shift, not at the start or end.

What about lactation breaks?

Federal PUMP Act and ACA provisions require employers to provide reasonable break time and a private place for nursing employees to express milk for one year after childbirth. Tennessee's Pregnant Workers Fairness Act requires accommodation for nursing as well, with the same one-year window.

Tennessee Lawful Employment Act (TCA 50-1-701 et seq.)

The TLEA is Tennessee's state-level employment verification statute and runs alongside the federal I-9 requirement. The statute was significantly amended in 2022 with new effective dates from 2023.

Which employers does the TLEA cover?

Effective January 1, 2023, private employers with 35 or more full-time equivalent employees under the same FEIN must use the federal E-Verify system. Smaller employers may use E-Verify or instead maintain authorized identity and employment-eligibility documents.

What documents satisfy the TLEA for employers under 35 employees?

An employer that does not use E-Verify must request and maintain one of the following identity and employment-eligibility documents from each new hire:

• A valid U.S. passport or passport card
• A driver's license issued by Tennessee or a state with comparable identity standards
• A birth certificate
• A naturalization certificate or U.S. citizenship document
• A permanent resident card or other federally issued employment authorization

Who enforces the TLEA?

The Tennessee Department of Labor and Workforce Development. A lawful resident of Tennessee or a federal agency employee can file a complaint. The Commissioner can issue warnings for first violations if the employer cures within 45 days, with escalating penalties for subsequent or knowing violations.

How does TLEA interact with federal I-9?

Federal I-9 obligations apply to every employer regardless of size. TLEA layers a state-level verification rule on top for employers with 35 or more employees. Both processes can run in parallel; an organized HR onboarding workflow handles both with one document collection step.

Healthcare Provider Non-Competes (TCA 63-1-148)

Tennessee has one of the most detailed healthcare provider non-compete statutes in the country. The statute, originally enacted in 2007, applies to physicians (except emergency medicine specialists), chiropractors, podiatrists, dentists, optometrists, and psychologists.

What does TCA 63-1-148 require?

A non-compete restriction on a covered healthcare provider must:

• Be in writing and signed by the provider and the employing or contracting entity
• Last no more than two years
• Be limited geographically to the greater of a 10-mile radius from the primary practice site or the county in which the primary practice is located, OR limited to restricting practice at any facility at which the employing entity provided services

What is the rebuttable presumption?

A non-compete that meets the duration and geographic limits is presumed reasonable. The provider can rebut the presumption with evidence that the restriction in fact imposes an unreasonable hardship, but the starting point favors enforcement.

What about emergency medicine specialists?

TCA 63-1-148 explicitly excludes physicians who specialize in emergency medicine. Emergency medicine non-competes are governed by general Tennessee non-compete law, which applies a stricter reasonableness analysis.

Are buy-out provisions allowed?

Yes, and they are common. Many Tennessee healthcare non-competes include a buy-out clause allowing the provider to purchase a release at a defined price. The price must be reasonable; courts will not enforce a buy-out that is so high it functions as a de facto absolute restriction.

General Non-Compete Agreements in Tennessee

Outside the healthcare context, Tennessee enforces non-competes at common law without a comprehensive statute. Courts apply a reasonableness test that has narrowed over the past two decades.

When are general non-competes enforceable?

When the agreement is reasonable in scope, duration, and geographic reach, and when the employer has a legitimate protectable interest such as trade secrets, confidential information, or substantial customer relationships. Tennessee courts will not enforce a non-compete that simply blocks ordinary competition.

Does Tennessee "blue pencil" overbroad non-competes?

Sometimes. Tennessee courts may modify an unreasonable non-compete to make it enforceable as revised, particularly when the agreement is otherwise reasonable. The trend, however, is toward stricter scrutiny. Draft narrowly the first time.

What duration and geographic scope hold up?

• Two-year durations are sometimes enforceable for senior or sales roles; one year is the safer default
• Geographic scope tied to the employee's actual sales territory or service area is more enforceable than statewide or multi-state restrictions
• Non-competes that cover any "competitor" without reference to the employee's actual role are commonly struck down
• Customer non-solicits and employee non-solicits are easier to enforce than full non-competes

Are there 2025 or 2026 changes to general non-compete enforceability?

A 2025 bill aimed at broadly prohibiting non-competes in Tennessee was introduced but did not pass. Current law remains the common-law reasonableness analysis combined with TCA 63-1-148 for healthcare providers.

Tennessee Public Protection Act (TPPA): Whistleblower Protection

The Tennessee Public Protection Act, codified at TCA 50-1-304, is Tennessee's primary statutory whistleblower protection. The TPPA covers all employers regardless of size.

What does the TPPA prohibit?

An employer cannot discharge an employee solely for refusing to participate in or remain silent about illegal activities. "Illegal activities" means activities that violate Tennessee or federal criminal or civil law, or any regulation intended to protect the public health, safety, or welfare.

What is the "sole reason" requirement?

The TPPA requires the protected activity to be the sole reason for discharge. This is a tougher standard than the federal "motivating factor" standard under Title VII. Even minor unrelated workplace issues (such as a recent disciplinary action or a tardiness pattern) can defeat a TPPA claim.

Who must the employee report to?

The TPPA requires the report to go to someone other than the alleged wrongdoer. Reporting only to the wrongdoer or to a peer who is involved in the misconduct does not qualify. In practice, the report should go to a supervisor outside the wrongdoer's chain of command, an HR business partner, in-house counsel, an ethics or compliance hotline, or a government agency.

What is the filing window?

A TPPA lawsuit must be filed within one year of the retaliatory discharge. A successful plaintiff can recover lost wages, benefits, attorney's fees, and court costs.

How does TPPA interact with federal whistleblower laws?

Federal Sarbanes-Oxley, Dodd-Frank, the False Claims Act, OSHA Section 11(c), and the FLSA all provide separate whistleblower protections that can apply alongside the TPPA. Workers in publicly traded companies, financial services, healthcare, and federal contracting may have multiple layered protections. A clear whistleblower policy with anonymous intake routes the report through HR rather than around it.

Drug Testing and the Tennessee Drug-Free Workplace Program

Tennessee actively encourages workplace drug testing through a voluntary Drug-Free Workplace Program codified at TCA 50-9-101 et seq.

What is the Tennessee Drug-Free Workplace Program?

A voluntary state certification program. Employers that adopt a qualifying drug-free workplace policy receive a discount on workers' compensation insurance premiums. The program covers pre-employment, reasonable suspicion, post-accident, random, return-to-duty, and follow-up testing.

What are the policy requirements for certification?

• A written drug-free workplace policy distributed to all employees
• A description of the types of drug tests used and consequences of a positive result
• Procedures for confidential test handling
• Notice of the employee's right to explain a positive result (including for prescribed medications)
• An Employee Assistance Program (EAP) reference where available

Can Tennessee employers test for marijuana?

Yes. Marijuana remains illegal under Tennessee state law in the medical and recreational contexts. SB 118 permits qualifying patients to use CBD oil with less than 0.9% THC, but the law does not protect employees from drug-test consequences. Employers can refuse to hire, terminate, or discipline workers based on a positive marijuana test.

What about CBD oil tests?

CBD oil products with less than 0.9% THC are legal for qualifying patients, but standard workplace drug tests can return a positive marijuana result for low levels of THC. Employers should think through policy carefully; a strict zero-tolerance approach may catch CBD users who otherwise comply with state law. Document the policy and apply it consistently.

What ADA limits apply?

An applicant or employee taking a lawfully prescribed medication for a disability is protected under the federal ADA. Refusing to hire based on a positive test for a prescribed medication can trigger an ADA claim. Build a process for the worker to disclose prescriptions during the test result review and document the analysis.

Background Checks and Hiring in Tennessee

Tennessee has a lighter hiring rule framework than many states. The federal FCRA controls most background-check obligations, with a handful of state-specific rules.

Is there a Tennessee ban-the-box law for private employers?

No state-level ban-the-box rule applies to private employers. Tennessee state government delays criminal-history inquiries on initial state-agency applications under a 2016 executive order, but the rule does not extend to private employers. TCA 50-1-104 preempts local ordinances stricter than state law for private employers.

What FCRA rules still apply?

All of them. Tennessee employers using third-party consumer reports for hiring or employment decisions must comply with the federal Fair Credit Reporting Act:

• Standalone written disclosure to the applicant before the report is run
• Written authorization from the applicant
• Pre-adverse action notice with a copy of the report and a summary of FCRA rights
• Reasonable opportunity for the applicant to dispute the report
• Final adverse action notice if the decision stands

Are credit checks regulated?

Tennessee does not have a state-specific credit check restriction. The federal FCRA framework applies. Employers should still document the job-related justification for credit checks because the EEOC has flagged disparate-impact concerns with credit-based hiring.

What about salary history bans?

Tennessee does not have a state-level salary history ban. Employers can ask applicants about wage history during recruitment, though many multi-state employers default to a uniform no-salary-history practice to align with the rules in California, Colorado, New York, Washington, and other states.

Cannabis and Workplace Policy in Tennessee

Tennessee has not legalized recreational marijuana and has only a narrow medical cannabis law. The state remains one of the most employer-favorable jurisdictions in the country for cannabis policy.

Is medical marijuana legal in Tennessee?

Not in the broad sense most states use. Tennessee permits qualifying patients to use CBD oil with less than 0.9% THC under SB 118 and related statutes. The state does not issue medical marijuana cards and does not allow medical use of higher-THC products.

Can Tennessee employers fire workers for off-duty cannabis use?

Yes. Tennessee does not protect off-duty cannabis use, even where the use is legal in another state. Employers can adopt zero-tolerance policies that allow termination based on a positive test, regardless of when or where the use occurred.

What about safety-sensitive positions?

U.S. Department of Transportation regulated drivers, federal contractors subject to the Drug-Free Workplace Act, and other safety-sensitive workers face additional federal testing requirements that override any state-level cannabis protections that might exist elsewhere. Tennessee does not extend cannabis protections to non-safety-sensitive roles.

Tennessee Workers' Compensation

Tennessee employers must carry workers' compensation insurance under the Tennessee Workers' Compensation Law, codified at TCA 50-6-101 et seq. The Bureau of Workers' Compensation administers the system.

Who must carry coverage?

Employers with five or more employees. Construction industry employers must carry coverage starting at one employee under TCA 50-6-902. Coal mining employers must carry coverage from the first employee under separate provisions.

How fast must an injury be reported?

An employee must give notice of injury to the employer within 15 days of the injury or knowledge of an occupational disease, unless reasonable excuse exists. Employers must file a First Report of Injury with the Bureau within 14 days of receiving notice. Late reporting can delay claim adjudication and expose the employer to penalties.

What benefits are available?

• Medical care for the work-related injury
• Temporary total or partial disability benefits during recovery
• Permanent partial impairment benefits based on a statutory schedule
• Permanent total disability benefits in qualifying cases
• Death benefits for survivors

Can workers be terminated while on workers' comp?

Tennessee courts recognize a wrongful discharge claim for retaliation against employees who file workers' comp claims (Clanton v. Cain-Sloan, 1984). Termination during a comp claim should be supported by clear documentation of legitimate, non-retaliatory grounds.

TOSHA: Tennessee Workplace Safety

Tennessee is a state-plan OSHA jurisdiction. The Tennessee Occupational Safety and Health Administration (TOSHA), part of the Tennessee Department of Labor and Workforce Development, enforces both federal OSHA standards and Tennessee-specific rules.

What injury reporting is required?

• Fatalities: Reported within 8 hours of the death
• In-patient hospitalizations, amputations, and eye losses: Reported within 24 hours
• Even employers not required to maintain 300/300A logs: Must still report fatalities, hospitalizations, amputations, and eye losses within the deadlines above

What recordkeeping does TOSHA require?

Employers with more than 10 employees in covered industries must maintain the OSHA 300 log of work-related injuries and illnesses, post the 300A summary annually from February 1 through April 30, and submit electronic injury data to the federal portal. Smaller employers and certain low-hazard industries are exempt from the routine recordkeeping requirement but still must report serious incidents.

What free safety consultation is available?

TOSHA Consultative Services provides free workplace safety consultation, training, and outreach to Tennessee employers. Consultations are confidential and not used for enforcement; they are designed to help employers identify and correct hazards before an inspector arrives.

Are there Tennessee-specific safety standards?

TOSHA generally adopts federal OSHA standards but has authority to enforce them more strictly. Specific Tennessee rules apply in agriculture, construction, and a handful of other sectors. Employers should review the TOSHA rule database annually and update written safety programs accordingly.

Child Labor and Youth Employment in Tennessee

Tennessee child labor rules are codified at TCA 50-5-101 et seq. and follow federal child labor rules with a few state-specific tightenings.

What hours can 14- and 15-year-olds work in Tennessee?

• Up to 3 hours on a school day and up to 8 hours on a non-school day
• Up to 18 hours per school week and up to 40 hours per non-school week
• No work before 7 AM
• No work after 7 PM during the school year, or after 9 PM from June 1 through Labor Day

What hours can 16- and 17-year-olds work?

Tennessee restricts the work hours of 16- and 17-year-olds enrolled in school. The student cannot work after 10 PM on a night before a school day and is subject to maximum daily and weekly hour limits during the school year. Federal hazardous occupation rules continue to apply.

Are work permits required?

Tennessee does not require work permits for minors, but employers must verify the worker's age and maintain a record of proof of age (such as a birth certificate or driver's license) in the personnel file.

Are hazardous occupations regulated?

Yes. Federal hazardous-occupations rules under 29 CFR 570 apply to all Tennessee minors. Prohibited categories include most operations involving power-driven hoists, certain meat-processing equipment, roofing, mining, and motor vehicle driving for occupations covered under federal child labor rules. Audit job descriptions and shift assignments before placing a minor in any covered role.

Voting Leave, Jury Duty, and Other Civic Leave in Tennessee

Tennessee provides a handful of civic leave protections, more than most southern states.

Does Tennessee require voting leave?

Yes. Under TCA 2-1-106, employees are entitled to up to three hours of paid leave to vote in any state, county, or municipal election if they cannot vote outside scheduled work hours. The employer can specify when the leave is taken during the day. The employee must request leave by noon on the day before the election. Polls are open from 8 AM to 8 PM Central Time on election day.

Is jury duty leave required?

Under TCA 22-4-106, an employer with five or more employees cannot terminate, threaten, or coerce an employee because of jury service. The employer must pay the difference between the employee's usual compensation and the daily juror per diem for the duration of jury service, up to the employee's regular pay. Tennessee is one of a handful of states that requires partial pay during jury service.

Is military leave protected?

Federal USERRA applies. Tennessee also protects members of the Tennessee National Guard from adverse employment action for service under TCA 58-1-604 and related statutes. Reemployment rights are required when service ends.

Is witness leave protected?

Yes. Employees subpoenaed to appear in court or before an administrative body cannot be fired or penalized for compliance with the subpoena. Pay during witness service is not required.

Is bereavement leave required?

Not as a state-mandated benefit. Most Tennessee employers offer 3 to 5 days of paid bereavement leave for the death of an immediate family member as a competitive recruiting practice, but the state does not require it.

Sexual Orientation and Gender Identity in Tennessee

Tennessee state law does not enumerate sexual orientation or gender identity as protected classes under the THRA. The federal Bostock v. Clayton County decision (2020) reads sex under Title VII to cover both characteristics for employers with 15 or more employees.

Are there local ordinances that add protection?

Tennessee's preemption rule at TCA 50-1-104 limits the ability of local governments to impose additional employment-discrimination obligations on private employers. Local non-discrimination ordinances generally apply only to local government employees and government contractors, not to general private employment.

What does that mean for Tennessee small employers?

An employer with fewer than 15 employees is below the federal Title VII threshold for sex-based protections that include sexual orientation and gender identity under Bostock. Tennessee state law's 8-employee THRA threshold does not currently extend to sexual orientation or gender identity. Local ordinances on government contractors do not necessarily reach private business operations.

What is the practical advice?

Even where state and federal law do not require it, a uniform anti-discrimination policy that covers sexual orientation and gender identity reduces the risk of mixed-motive litigation and supports a healthy workplace culture. Documented harassment prevention built into the onboarding workflow keeps the framework consistent across worksites.

WARN Act and Mass Layoffs in Tennessee

Tennessee has no state mini-WARN equivalent. The federal Worker Adjustment and Retraining Notification (WARN) Act controls.

When does federal WARN apply?

Employers with 100 or more full-time employees (or 100 employees with combined hours exceeding 4,000 per week) must give 60 days advance notice for:

• Plant closings affecting 50 or more employees at a single site of employment
• Mass layoffs affecting 500 or more employees, or 50 or more employees if at least 33% of the active workforce

Where does the WARN notice go?

• Affected employees (or their union)
• The Tennessee Department of Labor and Workforce Development, Rapid Response unit
• The chief elected official of the local government where the layoff or closure occurs

What are the exceptions?

Federal WARN includes exceptions for unforeseeable business circumstances, faltering company status, and natural disaster. The exceptions do not always excuse the entire 60-day notice; they can shorten the period to what is practicable. Document the basis for any reduced notice.

What are the penalties for failing to provide WARN notice?

Affected employees can recover back pay and benefits for up to 60 days, plus a civil penalty payable to the local government of up to $500 per day of violation. Class actions are common in WARN cases. An employee relations team running RIF coordination should plan WARN notice timing as a hard-coded gate before any communication to affected workers.

Independent Contractor Classification in Tennessee

Tennessee uses different classification tests in different contexts, with the federal economic-realities test driving FLSA classification and a state-specific test driving unemployment insurance.

What test applies under Tennessee law?

For unemployment insurance under TCA 50-7-207, Tennessee uses a 20-factor common-law test that closely tracks the IRS common-law factors. The test analyzes behavioral control, financial control, and the relationship of the parties.

What test applies under federal law?

The federal FLSA economic-realities test for wage and hour purposes. The IRS common-law factors for federal tax classification. Each test can produce a different result for the same worker, which is why misclassification cases often produce parallel liability under multiple regimes.

What did the 2025 Voluntary Portable Benefits Plan Act do?

It allows public or private entities to voluntarily contribute to portable benefit plans for independent contractors. The contribution does not, by itself, convert the contractor into an employee under any of the classification tests. The law is a benefit-plan tool, not a classification rule.

What happens with misclassification?

Tennessee can pursue back unemployment insurance contributions, interest, and penalties. The federal IRS and U.S. Department of Labor can pursue back federal taxes, FICA, and FLSA back wages plus liquidated damages. Workers can pursue private FLSA suits. Document each contractor relationship with a written agreement, a clear scope of work, and contractor-side evidence (separate business, multiple clients, own tools). Pair the documentation with a retaliation prevention framework so a misclassification audit does not escalate after a worker complaint.

Recordkeeping Requirements for Tennessee Employers

Tennessee recordkeeping rules layer on top of federal FLSA, FCRA, and FMLA recordkeeping. Practical retention periods:

• Payroll records: 3 years (FLSA floor)
• Time and earnings records: 2 years (FLSA supporting documents)
• I-9 forms: Until the later of 3 years after hire or 1 year after termination
• FMLA records: 3 years
• EEO-1 forms (employers with 100+ employees): Maintained as filed; underlying data 1 year
• OSHA 300 logs: 5 years
• TLEA verification documents: Length of employment plus 3 years for E-Verify-using employers; identical for the document-maintenance alternative
• Personnel files: No statutory minimum, but the practical floor is at least the longest applicable statute of limitations

Multi-state Tennessee employers often retain personnel records for the duration of employment plus six years to align with the most demanding state in the matrix. Centralized case files reduce the risk that an investigation lands without supporting documentation.

Where Tennessee Employees File Complaints

After July 1, 2025, Tennessee enforcement is split across CRED, the Department of Labor and Workforce Development, the Bureau of Workers' Compensation, and TOSHA, plus federal agencies.

• Discrimination, harassment, retaliation (THRA, TDA, Tennessee PWFA): Civil Rights Enforcement Division (CRED) at the Tennessee Attorney General's Office (180 days) or EEOC (300 days)
• Wage payment / final paycheck disputes: Tennessee Department of Labor and Workforce Development, Labor Standards Unit
• FLSA wage and hour claims: Direct private suit or U.S. Department of Labor Wage and Hour Division
• TOSHA complaints: Tennessee Department of Labor and Workforce Development TOSHA division
• Workers' compensation disputes: Tennessee Bureau of Workers' Compensation
• Unemployment insurance disputes: Tennessee Department of Labor and Workforce Development, Unemployment Insurance Appeals
• Whistleblower retaliation (TPPA): Direct suit within 1 year
• TLEA / E-Verify complaints: Tennessee Department of Labor and Workforce Development, Office of Employment Verification Assistance
• Tennessee Parental Leave Act claims: Direct suit; CRED can also receive complaints alleging parental leave retaliation tied to a protected characteristic

Filing windows worth knowing in advance

• THRA charges with CRED: 180 days
• EEOC charges: 300 days
• Direct THRA lawsuit: 1 year
• FLSA claims: 2 years (3 years for willful violations)
• TPPA claims: 1 year
• Workers' comp injury notice: 15 days from injury
• Workers' comp First Report of Injury: 14 days from notice

How AllVoices Helps Tennessee Employers Stay Compliant

Tennessee's 8-employee THRA threshold, the four-month parental leave entitlement, the 21-day final-pay rule, the TPPA whistleblower protections, and the new CRED enforcement structure all turn employee complaint handling into a documentation game. AllVoices is built to centralize that documentation and turn employee reports into defensible records.

Intake that meets every reporting channel

Tennessee workers can file with CRED, EEOC, the Department of Labor, TOSHA, or the Bureau of Workers' Compensation. AllVoices anonymous and named intake routes complaints to the right HRBP, ER lead, or outside counsel with a complete audit trail. Whether a worker reports off the state poster, a handbook QR code, or a Slack DM, the report lands in one queue.

Case management built for Tennessee investigations

Tennessee discrimination and whistleblower cases are won and lost on documentation. AllVoices case management workflow records every interview, every document request, every credibility finding, and every remediation step. When CRED requests the file under its investigation process, the export is one click.

Vera AI for early signal detection

Vera AI is the AllVoices intake assistant. Vera helps employees frame what happened, asks the right follow-up questions, classifies the issue type, and surfaces patterns across reports. For a Tennessee employer with manufacturing operations across Nashville, Memphis, Chattanooga, and Knoxville, Vera flags a pattern of safety or harassment complaints across one location well before a CRED charge ever lands.

HRIS integrations

AllVoices integrates with Workday, Rippling, Paylocity, BambooHR, Slack, Microsoft Teams, and the major SSO providers, so employee data, manager hierarchy, and case access permissions stay in sync with your system of record. For Tennessee employers running federal contracts that need OFCCP audit trails, the integrations close the loop.

Investigations and the playbook

A compliance-first playbook for harassment, retaliation, and TPPA cases is built into the platform. The playbook walks investigators through what CRED, the EEOC, and the Department of Labor look for: prompt acknowledgement, prompt fact-finding, weighted credibility analysis, and timely remedial action. To see the playbook in a live workspace, schedule a demo of AllVoices.

Frequently Asked Questions About Tennessee Labor Laws

What is the Tennessee minimum wage in 2026?

$7.25 per hour, the same as the federal FLSA. Tennessee does not have a state minimum wage statute, and TCA 50-1-104 preempts local ordinances. Recent bills to raise the rate to $15 by 2026 (SB 2670/HB 2793, SB 1190, SB 1357) did not pass.

When are final wages due in Tennessee?

By the next regular payday after separation or 21 days after separation, whichever occurs last, under TCA 50-2-103. The rule applies to both voluntary resignations and involuntary discharges. Vacation pay or PTO must be included in final wages if the employer's policy provides for payout.

How small does a Tennessee employer have to be to avoid the THRA?

Seven or fewer employees. The Tennessee Human Rights Act applies to employers with 8 or more employees in the state. Federal Title VII applies starting at 15 employees. Many Tennessee small employers face state-level discrimination obligations that pre-date the federal threshold.

Does Tennessee require paid sick leave?

No. Tennessee has no state paid sick leave mandate, and TCA 50-1-104 preempts local ordinances on private employers. Voluntary policies are governed by the employer's handbook and offer letter.

What is the Tennessee Parental Leave Act entitlement?

Up to four months of leave for adoption, pregnancy, childbirth, or nursing an infant at employers with 100 or more full-time employees at the worksite. Both male and female employees qualify. The leave runs alongside FMLA, but the Tennessee period is longer than FMLA's 12 weeks.

Are non-compete agreements enforceable in Tennessee?

Generally yes for general employees, if reasonable in scope, duration, and geography and supported by a legitimate protectable interest. Healthcare provider non-competes follow TCA 63-1-148 with a two-year maximum duration and 10-mile-or-county geographic limit. Tennessee courts may modify overbroad non-competes in some cases.

Can a Tennessee employer drug test for marijuana?

Yes. Marijuana remains illegal under Tennessee state law in medical and recreational contexts (with a narrow CBD oil exception under SB 118 that does not block testing). Tennessee employers can run pre-employment, reasonable suspicion, post-accident, random, and follow-up tests for marijuana, and can take adverse action based on positive results.

Does Tennessee require E-Verify?

For private employers with 35 or more full-time equivalent employees under the same FEIN, yes, under TCA 50-1-703 (the Tennessee Lawful Employment Act). Smaller employers may use E-Verify or maintain authorized identity and employment-eligibility documents instead. Federal I-9 obligations apply regardless of size.

What happened to the Tennessee Human Rights Commission in 2025?

The Tennessee Human Rights Commission was dissolved effective July 1, 2025. Discrimination complaints under the Tennessee Human Rights Act, the Tennessee Disability Act, and the Tennessee Pregnant Workers Fairness Act now route through the Civil Rights Enforcement Division (CRED) at the Tennessee Attorney General's Office.

The Bottom Line on Tennessee Compliance

Tennessee looks like a federal-default state at first read and gets specific in a few places that produce real exposure. The 8-employee THRA threshold, the Tennessee Disability Act's 8-employee coverage, the state Pregnant Workers Fairness Act, the four-month parental leave entitlement, the 21-day final-pay rule, the TLEA E-Verify mandate, and the TCA 63-1-148 healthcare non-compete framework all reward employers that build documentation into the workflow from day one.

The 2026 priorities for Tennessee HR teams:

• By the first hire after January 1: Confirm E-Verify enrollment for any employer that crosses the 35-employee TLEA threshold. Audit identity-document collection workflows for smaller employers.
• Throughout 2026: Update the discrimination complaint process to route to CRED at the Tennessee Attorney General's Office. Replace any references to the Tennessee Human Rights Commission in handbooks, posters, and policy documents.
• Throughout 2026: Audit healthcare provider non-compete templates against TCA 63-1-148 (two-year maximum, 10-mile or county geographic limit, written agreement). Refresh general non-compete templates against the latest reasonableness case law.
• Throughout 2026: Run an annual review of the parental leave policy at any worksite with 100 or more full-time employees. Confirm the four-month entitlement is documented in the handbook and properly coordinated with FMLA.
• Ongoing: Document every harassment, discrimination, and retaliation report under the THRA, the TDA, and the TPPA with the rigor a CRED investigator expects to see. Keep payroll and personnel records for at least the longest applicable statute of limitations plus a margin.

Compliance in Tennessee looks lighter than in California or New York and gets sharp quickly when an employee report comes in. To see how a structured intake and investigations workflow holds up under Tennessee's wage payment, civil rights, and parental leave statutes, explore the AllVoices employee relations platform.