travel pay laws tennessee

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Travel Time

Time spent traveling during normal work hours is considered compensable work time. Time spent in home-to-work travel by an employee in an employer-provided vehicle, or in activities performed by an employee that are incidental to the use of the vehicle for commuting, generally is not "hours worked" and, therefore, does not have to be paid. This provision applies only if the travel is within the normal commuting area for the employer's business and the use of the vehicle is subject to an agreement between the employer and the employee or the employee's representative.

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Handy Reference Guide to the Fair Labor Standards Act - Answers many questions about the FLSA and gives information about certain occupations that are exempt from the Act.

Coverage Under the Fair Labor Standards Act (FLSA) Fact Sheet - General information about who is covered by the FLSA.

Wage and Hour Division: District Office Locations - Addresses and phone numbers for Department of Labor district Wage and Hour Division offices.

State Labor Offices/State Laws - Links to state departments of labor contacts. Individual states' laws and regulations may vary greatly. Please consult your state department of labor for this information.

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Tennessee Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More (2024)

• 13 min read
• Published : October 31, 2023

Alex Planes

• October 31, 2023

U.S. Labor Laws

• Tennessee Labor Laws
• Florida Labor Laws
• Kentucky Labor Laws
• Texas Labor Laws
• Connecticut Labor Laws
• Minnesota Labor Laws
• Georgia Labor Laws
• Alabama Labor Laws

Ensure Labor Law Compliance With Workyard

Navigating labor laws is an essential – but often overlooked – aspect of running any business in the United States. In Tennessee as in other U.S. states, understanding the interplay between state-specific regulations and federal laws can help ensure a fair, legal, and safe working environment for both employers and employees.

This extensive guide aims to provide a thorough overview of Tennessee labor laws, covering various crucial topics from hiring practices and wage requirements to employee rights and workplace safety.

Whether you’re an employer looking to comply with state regulations, an employee seeking to understand your rights, or an HR professional aiming to enforce lawful practices, this article will provide a comprehensive resource on virtually every commonly-encountered labor law scenario in Tennessee.

We’ll provide you with actionable insights, essential information, and practical guidance to navigate the legal landscape of employment in the Volunteer State, all in straightforward language with straightforward answers to what is often a highly technical and not user-friendly experience for many employers and business leaders.

Let’s dive in!

Meals and Breaks in Tennessee

Most Tennessee employers must provide meal breaks, as well as certain other types of breaks:

Meal and Break Laws in TN

Meal breaks, 30 min. for every 6 hours worked., lactation breaks, required for baby’s first year., leave and paid time off (pto) in tennessee.

Tennessee has some laws governing the provision of leave and paid time off for employees in the state, but employers must abide by federal leave regulations where they exist, but Tennessee laws do not.

Break or Leave Type in TN

Tn sick days, no requirements., tn vacation time, tn holiday leave, tn family and medical leave, unpaid leave permitted (up to 12 weeks) per u.s. family and medical leave act., tn bereavement leave, tn military leave, employees may not be fired for serving in the national guard or for taking part in mandatory training., tn firefighter leave, volunteer firefighters may not be fired for responding to emergencies., firefighting for 4+ hours entitles an employee to take the following workday off with pay (if available)., tn voting leave, employees requesting time off by noon on the previous day may receive up to 3 hours of paid time off to vote., tn jury duty leave, permanent employees must be paid for time spent on jury duty and may not be punished for participating., tn witness leave, overtime regulations in tennessee.

Tennessee does not have any laws for overtime pay, which means it abides by the federal laws governing overtime .

Workers who put in more than 40 hours in a single workweek are entitled to 1.5X their normal pay rate for all hours worked over the 40-hour limit.

Certain kinds of employees are not eligible for overtime pay. These employees include:

• Exempt employees (professional, administrative, and executive)
• Live-in or domestic employees
• On-call emergency workers
• Independent contractors
• Salaried employees earning at least $23,660 annually or $455 weekly

Wages and Benefits in Tennessee

Tennessee does not have an established minimum wage or a tipped employee minimum wage, which means it abides by federal minimums:

Wage Type in TN

Tn minimum wage, tn tipped minimum wage.

However, Tennessee does have an equal pay law . The Tennessee Code Annotated Section 50-2-202 specifies that employers may not pay men and women differently based on their sex.

Tennessee employers must compensate employees at least once a month. Monthly wage payments must be made by the 5th of the month for all earnings accrued for the previous month.

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Wage or payroll deductions.

Employers in Tennessee are generally not allowed to deduct expenses from employee paychecks without the employee’s written authorization. There are three primary exceptions to the deduction rule:

• Uniform purchases or other costs
• Health insurance premiums (at employee request)
• Loans or advances on salary earnings

Prevailing Wages in Tennessee

Tennessee’s prevailing wage rates are set for highway construction projects, and cover all job types expected to work on these projects.

For 2023, Tennessee’s prevailing wages range from a low of $17.23 an hour for farm tractor operators to a high of $38.56 an hour for drill operators .

💡Did You Know?

Tennessee’s Department of Labor maintains a dedicated Prevailing Wage Act website where you can check current-year prevailing wage rates .

Hiring Practices in Tennessee

Tennessee is an at-will employment state , which means that employers may hire or fire any employee for any reason – and employees may also leave their jobs for any reason.

This regulation is subject to state and federal anti-discrimination laws.

Tennessee Anti-Discrimination Laws

Employers may not use the following criteria to make either hiring or firing decisions:

• National Origin

Questions You Can’t Ask When Hiring in Tennessee

Tennessee has prohibitions against asking certain questions during the hiring process.

Senate Bill 2440 prescribes a Ban the Box law for Tennessee employers , which means they can’t ask about applicants’ criminal histories during the initial application process. Employers may still conduct background checks, but only after the hiring process has advanced to later stages of consideration.

However, neither Tennessee nor any of its major cities prohibit employers from asking applicants about their salary histories.

Tennessee Pre-Hire Screening

Tennessee employers may ask job applicants to undergo a medical or physical examination before hiring , as long as it’s directly relevant to their job responsibilities. This is meant to determine if the candidate is physically capable of performing the position’s core tasks, either with or without reasonable accommodations.

Most pre-hire screening practices involve drug testing, which is controlled by Tennessee’s drug-free workplace program and is covered in the Health and Safety section below.

However, employers must abide by the Genetic Information Discrimination Act of 2008, which prohibits employers from accessing an individual’s genetic information or family medical history. The focus should remain strictly on the applicant’s ability to perform the job at hand.

New Hire Reporting and E-Verify

All employers with 35 or more employees must use the Tennessee E-Verify employment verification process , which ensures all workers are legally permitted to work in Tennessee (or in any other state).

Employers in Tennessee must also report all new hires to the Department of Labor and Workforce Development within 20 days of their hiring date. The Department maintains an employer-focused website for this purpose.

You can report new hires to Tennessee’s Department of Labor through the state’s dedicated new-hire reporting portal .

Employer Reporting Requirements in Tennessee

Tennessee employers must notify employees of certain rights and facts regarding their employment, and must also retain certain information to comply with state and federal reporting and recordkeeping mandates:

Required Postings and Notifications

Employees must be notified of their wage rate before starting work.

Wages may not be misrepresented to employees.

Employers must maintain at least 2 conspicuous notices regarding pay dates.

Employers must also maintain the following employment law posters:

• TOSHA Safety and Health Poster
• TN Unemployment Insurance Poster
• Wage Regulation + Child Labor Poster
• Workers Compensation Notice
• Discrimination in Employment
• Federal Labor Law Posters
• Minimum Wage Poster

Recordkeeping Requirements in Tennessee

Tennessee does not have any state-level recordkeeping requirements beyond those mandated by federal regulations.

The federal Fair Labor Standards Act (FLSA) requires employers to maintain various employment records for varying lengths of time. Here are the requirements by time frame:

Must keep for at least one year

• All employment records for at least 1 year after termination
• Seniority and merit system information

Must keep for at least two years

• Basic earning records (timecards, wage tables, deductions, etc.)
• Records explaining different pay rates to different genders

Must keep for at least three years

• Payroll records
• Certificates and agreements
• Collective bargaining agreements
• Employment contracts
• Sales and purchase records
• Completed I-9s
• Records of leaves, notices, policies, etc. (if covered by FMLA)

Must keep for at least five years

• Records of job-related injuries and illnesses

Must keep for at least six years

• Summary descriptions and annual reports of benefits plans

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Health and Safety Standards in Tennessee

Drug-free workplace.

Tennessee’s Drug-Free Workplace Program is an optional program. If employers choose to join the program, they must meet certain requirements to get a credit against the premiums on their workers’ compensation insurance policies.

Compliance typically requires candidates submit to pre-employment drug and alcohol screenings, and may also require current employees be tested for drugs and alcohol as a condition of continued employment.

Anyone who fails these screenings must either be disqualified from being hired (if a candidate) or fired (if an active employee). Positive tests as a result of medications prescribed within the six months prior to the test are exempt from termination.

Smoke-Free Workplace

Tennessee’s 2007 Non-Smoker Protection Act bans smoking in most enclosed public places, including offices or other places of employment. “No Smoking” signs must be posted to ensure compliance.

Weapons in the Workplace

Employers have the legal right to ban weapons in any buildings they own, manage, operated, or otherwise control. This ban applies to everyone – employee or otherwise – who may enter these buildings, regardless of whether or not they have a permit to carry weapons. A notice banning weapons must be posted somewhere prominent near the entrance to the building to ensure legal compliance.

However, anyone with a legal right to carry a firearm may legally keep such weapons out of sight and secured in their vehicles, even if the vehicle is on a company parking lot.

Child Labor Laws in Tennessee

Tennessee allows children as young as 14 and 15 to work for pay, but limits them to a maximum of three hours of work a day, 18 hours of work a week, which must be done no later than 7 p.m. during the school year.

Over the summer, children 14 or older can work up to eight hours a day or 40 hours a week and may work until 9 p.m.

Children aged 16 and 17 don’t have any restrictions on the total time they can work, but employers can’t force their under-18 employees to work during normal school hours or after 10 p.m. on school days.

Employee Termination and Resignation in Tennessee

Tennessee follows various laws on employee termination or resignation, depending on the circumstances surrounding the employee’s separation from their job.

Final Paychecks

Employees who have quit or been terminated must receive all final outstanding wages by the next regularly scheduled payday, or within 21 days of their separation – whichever comes later.

Tennessee does not have any laws governing severance pay. Any severance benefits offered to laid-off employees must be offered in compliance with any written severance agreements signed by employee and employer, or otherwise governed by existing internal company policies and procedures.

At-Will Employment

As an at-will employment state, Tennessee employers may terminate employees at any time, for any reason, so long as the reason isn’t discriminatory or in retaliation for any lawful action, such as whistleblowing or reporting coworker harassment.

An employee with an active employment contract is not considered an “at-will” employee, and termination of these employees must follow any terms set out in their contracts to ensure the employee can make no legitimate legal claims about the cause of their dismissal.

All Tennessee employers with at least eight employees must abide by state and federal anti-discrimination laws .

Mass Layoffs

There are two laws governing mass layoffs in Tennessee:

The Tennessee Plant Closings and Reduction in Operations Act covers Tennessee employers with between 50 and 99 employees.

The federal Worker Adjustment and Retraining Notification Act (WARN Act) covers employers with 100 or more employees.

One or the other law will control the situation when any employer with over 50 employees lays off at least 50 employees in a three-month (90-day) period, depending on the total employees on payroll when layoffs begin. To force a notice requirement under WARN, the company laying off employees must either:

• Lay off 50+ employees, if they make up at least a third of full-time employees at the site being laid off, or;
• Have at least 500 full-time employees.

Details on the required notices, and other legal requirements around mass layoffs in Tennessee – and instructions on how to file WARN notices – can be found on the Tennessee Department of Labor website.

Unemployment Benefits in Tennessee

Employees who are not at fault for losing their jobs – those let go without “fault” – may claim unemployment benefits if they’re actively looking for a new job.

To qualify for unemployment benefits, employees must have made an average of $780.01 in the two calendar quarters (three-month periods) out of the most recent five – excluding the quarter when they were let go. The second-highest-earning quarter must also have reported earnings of over $900, or six times the expected weekly unemployment benefit payment, for employees to qualify.

Unemployment in Tennessee pays a maximum of $275 per week for a maximum of 26 weeks in a year .

Employees are not eligible for unemployment if they:

• Quit on their own (voluntarily)
• Were fired for work-related misconduct
• Joined any labor dispute other than an active lockout
• Are not actively looking for or accepting new jobs

Penalties for Noncompliance in Tennessee

Penalties for not following labor laws in Tennessee may be assessed by either federal or state agencies, depending on which law controls any given situation.

• Failing to follow federal minimum wage laws, or federal overtime laws, may be punished by fines of up to $1,000 per violation. Intentional noncompliance may bring criminal charges, fines of up to $10,000, and possible prison time.
• Misrepresenting wages to a new hire is a misdemeanor, punishable with fines up to $50 and up to 30 days of jail time.
• Failing to pay wages rightfully earned is also a misdemeanor, punishable with fines up to $500 and as much as six months of jail time. Civil penalties of up to $1,000 may also be imposed, depending on the situation.
• Violating Tennessee meal break laws is a misdemeanor punishable by up to $500 in fines, with intentional offenders subject to fines of up to $1,000.
• Employing children under the age of 14 is a felony, punishable with fines of up to $125,000 against companies or $5,000 against individuals, and up to 12 years of imprisonment.
• Violating the Tennessee Occupational Safety and Health Act (TOSHA) may be punished with fines of up to $10,000 and up to six months of jail time. The maximum fine and jail time can be doubled (to $20,000 and one year) if the employer has previously been caught violating TOSHA.

The Bottom Line on Tennessee Labor Laws

Tennessee is governed by many labor laws at the state and federal level, with additional laws potentially applying in larger Tennessee municipalities. It’s important to know what applies, how to remain compliant, and – especially in the complicated world of moden employment law – how to manage your legal responsibilities in a streamlined, efficient, and cost-effective way.

For employers and HR professionals, staying up-to-date with the latest changes in labor laws is crucial. Consider investing in training, resources, or legal counsel to ensure that you are always on the right side of the law. Don’t forget the value of clear communication with your employees, ensuring that they are aware of their rights and responsibilities.

For many businesses, the only real solution to compliance challenges is great software. The right business-management software tends to come with built-in compliance and recordkeeping rules, regardless of your industry, how many employees you have, what they do, or how widely they’re dispersed across the state (or country).

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Workyard is built around the industry’s most accurate GPS tracking and geofencing technology , which ensures payroll accuracy across your workforce, no matter which job site you send them to or when you need them to work there. Workyard’s timesheet tracking system also comes with built-in federal and state overtime rules, as well as adjustable break rules you can customize at the employee level.

Workyard’s intuitive scheduling dashboard makes it easy to direct your workforce to the jobs you need done, based on their skill sets, their locations, their availability, and (of course) their weekly time worked – so you can avoid unnecessary overtime payments and reduce reimbursible travel expenses.

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Tennessee Department of Labor and Workforce Development. “ Labor Laws .” Accessed October 30, 2023.

UpCounsel. “ TN Labor Laws: Everything You Need to Know .” Accessed October 30, 2023.

Tennessee Department of Labor and Workforce Development. “ Prevailing Wage .” Accessed October 30, 2023.

Homebase. “ https://joinhomebase.com/state-labor-laws/tennessee/ .” Accessed October 30, 2023.

Tennessee Department of Labor and Workforce Development. “ WARN Notices .” Accessed October 31, 2023.

Tennessee Department of Labor and Workforce Development. “ Apply for Unemployment Benefits .” Accessed October 31, 2023.

Jibble. “ Penalties for Breaking Tennessee Labor Laws .” Accessed October 31, 2023.

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Workyard provides leading workforce management solutions to construction, service, and property maintenance companies of all sizes.

Tennessee Labor Law

1. introduction.

The State of Tennessee, located in the southeastern region of the United States, upholds various laws and statutes to regulate employment practices and maintain balanced labor relations. Governed by both federal and state legislation, employers and employees in Tennessee must comply with laws that cover a wide range of aspects including wages, overtime pay, leave policies, termination procedures, unemployment benefits, and workplace safety. Tennessee's employment laws are designed to ensure fair treatment for workers while allowing businesses to operate efficiently and competitively. This comprehensive guide will outline the noteworthy employment-related laws in Tennessee, offering a closer look at the state-specific regulations governing the workforce. The state's rules often work in conjunction with federal guidelines, such as the Fair Labor Standards Act (FLSA), Occupational Safety and Health Act (OSHA), and others, but can also include unique state-level provisions that reflect Tennessee's local legislative priorities. Understanding these laws is crucial for both employers and employees to navigate their rights and responsibilities within the Tennessee labor market.

2. Minimum Wage Laws

Tennessee is somewhat unique in the realm of minimum wage laws, as it is one of the few states that do not have a state-mandated minimum wage. Therefore, employers in Tennessee default to the federal minimum wage as established by the Fair Labor Standards Act (FLSA). As of the last update, the federal minimum wage is set at $7.25 per hour.

It should be noted, however, that certain cities or counties within Tennessee may pass ordinances that establish a higher local minimum wage for workers within their jurisdictions. Additionally, there are exceptions under the FLSA that might affect workers' minimum wage, such as tipped employees, who can be paid a lower cash wage as long as their tips bring them up to the equivalent of the full minimum wage.

3. Overtime Regulations

Under the FLSA, Tennessee employees are entitled to overtime pay for any hours worked over 40 in a workweek. The overtime rate is one-and-one-half times an employee’s regular rate of pay. There are some exemptions from the overtime requirements set forth by the FLSA, which may apply to specific job categories such as certain administrative, executive, professional, outside sales, and computer employees.

4. Vacation Leave

In Tennessee, employers are not required by state law to provide workers with paid or unpaid vacation benefits. If an employer chooses to offer vacation leave, their policy must comply with the terms of the employment contract or company policy. Tennessee law mandates that an employer must adhere to its own established policies when administering vacation leave.

When an employee leaves the company, whether through resignation or termination, the employer is not obliged to pay out accrued vacation time unless there is a clear policy in place that dictates such payment.

5. Sick Leave

Similarly to vacation leave, Tennessee law does not require employers to provide employees with sick leave benefits, either paid or unpaid. Should an employer decide to offer sick leave, they must comply with the terms of their established policy or employment contract.

It is important to note that while there is no state-mandated sick leave, provisions from the federal Family and Medical Leave Act (FMLA) may apply to eligible employees. Under the FMLA, qualified employees are entitled to take up to 12 weeks of unpaid, job-protected leave per year for certain family and medical reasons, although specific conditions must be met.

6. Holiday Leave

In Tennessee, there are no state laws that require private employers to provide paid holiday leave to their employees. This means that businesses in Tennessee have the discretion to decide if they wish to offer paid holidays to their workforce. However, if an employer chooses to provide paid holiday benefits, it is advisable for this to be outlined in the company's policy or in the employment agreement.

• Employers that do offer holiday pay must adhere to their own policies and treat all employees equally according to those policies.
• If an employee works on a holiday, there is no legal requirement under state law to offer extra pay, such as time-and-a-half or double time. Any premium pay for holiday hours would be a result of company policy rather than state mandate.
• For eligible public sector employees, the state observes certain holidays, which may include days like New Year's Day, Independence Day, Labor Day, Thanksgiving, and Christmas among others where offices are closed.

While private employers are not required to close on any specific holidays, many follow a similar schedule to the public sector and observe major national holidays. Again, the provision of paid or unpaid leave for these days is entirely up to the employer's discretion and set forth in their internal policies.

For adult workers, Tennessee does not have state-specific laws requiring employers to provide breaks or meal periods. Workers in Tennessee are subject to the federal standards under the FLSA, which also does not mandate breaks or meal periods for adult workers. However, it is common practice for employers to provide short breaks ranging between 5 to 20 minutes, and these breaks must be paid according to federal law.

When it comes to minor employees under the age of 18, Tennessee law requires that they must be given a 30-minute break if they are scheduled to work six hours consecutively. This requirement is intended to ensure that younger workers have adequate time to rest and eat during longer shifts.

• Rest Breaks: Although not required by law for adults, when employers do offer short breaks (usually lasting about 5 to 20 minutes), federal law considers the breaks as compensable work hours that would be included in the sum of hours worked during the workweek and considered in determining if overtime was worked.
• Meal Periods: For adult workers in Tennessee, meal periods (typically 30 minutes or more) do not need to be provided. However, if an employer chooses to offer a meal period, the federal FLSA stipulates that the employee must be completely relieved from duty for the purpose of eating regular meals, and the meal period is not considered compensable time.
• Breaks for Minors: Employers must provide a 30-minute unpaid break for minors scheduled to work more than consecutive 6 hours. This break cannot be scheduled during or before the first hour of scheduled work activity.

It's important for both employers and employees to note that while Tennessee does not mandate breaks or meal periods for adults, some employers may establish their own policies regarding such periods. If so, they are legally bound to follow their own rules and guidelines as set forth in their company policies or employee handbooks.

8. Employment Termination Laws

In Tennessee, employment relationships are generally considered "at-will". This means that either the employer or the employee can end the employment relationship at any time, with or without cause, and with or without notice, as long as the termination does not violate any employment contract or statutory law. However, there are several important exceptions and considerations to this at-will doctrine that both employers and employees need to be aware of.

• Discrimination: Employers cannot terminate an employee for discriminatory reasons based on race, color, national origin, sex, religion, disability, age, or any other protected characteristic under federal or state law.
• Retaliation: It is illegal for an employer to fire an employee for engaging in protected activities, such as filing a complaint of discrimination, participating in an investigation, or for whistleblowing.
• Public Policy: Tennessee recognizes a public policy exception to the at-will rule, meaning that an employee may not be terminated for reasons that would violate a clear public policy of the state.
• Implied Contracts: If an employer's policies or handbooks imply that certain procedures will be followed before termination, or suggest that employees will not be fired except for cause, an implied contract may be found, which could limit the employer's ability to terminate at will.
• Covenant of Good Faith: While Tennessee does not recognize the covenant of good faith and fair dealing in employment relationships as some other states do, employers still cannot fire employees for malicious reasons.
• Notice of Termination and Final Paycheck: Tennessee law does not mandate that employers give notice prior to termination. However, employers must provide a terminating employee's final paycheck no later than the next regular payday or within 21 days, whichever is later.
• Mass Layoffs: Under the Federal Worker Adjustment and Retraining Notification (WARN) Act, employers with 100 or more employees must provide at least 60 calendar days advance notice of plant closures and mass layoffs in certain situations.

It is also important for employers to be consistent with their termination practices to avoid claims of unfair treatment or discrimination. Consistency in the application of disciplinary policies and procedures is crucial for maintaining compliance with both state and federal laws.

While Tennessee's employment laws grant a significant amount of flexibility to employers, understanding the limitations and obligations is fundamental to uphold lawful employment practices. Both employers and employees should be familiar with these regulations or consult legal professionals when facing employment termination issues.

9. Unemployment Rights

In the state of Tennessee, unemployment benefits provide temporary financial assistance to workers who are unemployed through no fault of their own and meet certain eligibility requirements. The Tennessee Department of Labor and Workforce Development is responsible for administering unemployment insurance (UI) benefits in the state.

The eligibility criteria for receiving unemployment benefits in Tennessee typically include:

• Having worked in Tennessee during the past 12 to 18 months.
• Having earned at least a minimum amount of wages as determined by Tennessee guidelines.
• Being unemployed through no fault of one's own, as defined under Tennessee law.
• Being able and available to work full-time and actively seeking full-time employment.

To file for unemployment, claimants must submit an application either online or by calling the claims center. The information required typically includes:

• Social Security number.
• Details of previous employment.
• Reasons for unemployment.
• Banking information for direct deposit, if desired.

Once an individual has filed a claim, they must certify weekly that they are still eligible for benefits. This process includes reporting any earnings from work and confirming ongoing job search efforts. Failure to comply with these requirements can result in denial of benefits.

Benefits are calculated based on the individual’s earnings during the base period, which is typically the first four of the last five completed calendar quarters before the claim was filed. The amount of UI benefits and the duration of those benefits may vary based on the claimant’s previous wages and the overall unemployment rate in Tennessee.

In some cases, claimants may be directed to participate in reemployment activities designed to help them find new employment. This could include workshops, training, or job fairs.

Tennessee also enforces a one-week waiting period before claimants can start receiving benefits. During this time, claimants must meet all eligibility requirements but will not receive payment for the first week.

Additionally, claimants who feel they have been wrongfully denied unemployment benefits have the right to appeal the decision. The appeals process involves a hearing where both the claimant and the former employer can present evidence and testimony to an administrative judge.

It’s important to note that unemployment insurance is intended as a temporary relief to assist individuals while they seek new employment. It is not meant to be a long-term substitute for a paycheck and is subject to federal and state regulations that govern its use and distribution.

10. Workplace Safety

Workplace safety in Tennessee is governed by a combination of state and federal regulations designed to ensure that employees have a safe and healthy environment in which to work. The main federal agency overseeing workplace safety is the Occupational Safety and Health Administration (OSHA), while at the state level, the Tennessee Occupational Safety and Health Administration (TOSHA) administers state-specific safety laws.

Tennessee employers are required to provide their workers with protection against hazards that can cause injury or illness. This includes having proper safety equipment, offering training for employees on how to safely perform their jobs, and maintaining records of any workplace injuries or illnesses. Compliance with both federal and state workplace safety regulations is mandatory, and failure to adhere to these laws can result in penalties.

Some of the key areas covered under workplace safety laws in Tennessee include:

• Hazard Communication: Employers must inform employees about the presence of hazardous chemicals in the workplace through proper labeling, data sheets, and training programs.
• Emergency Action Plans: Businesses are required to have a written emergency action plan, outlining the procedures employees should follow in the event of an emergency such as a fire or natural disaster.
• Fire Safety: Employers must comply with state and local fire codes and provide adequate fire safety measures, including functioning fire extinguishers, clearly marked exits, and fire alarms.
• Personal Protective Equipment (PPE): Depending on the job, employers may be required to provide PPE like gloves, goggles, respirators, and hard hats to protect employees from job-specific hazards.
• Machine Guarding: Machinery must be properly guarded to protect workers from points of operation, ingoing nip points, rotating parts, flying chips, and sparks.
• Ergonomics: While there are no specific ergonomics regulations under Tennessee law, employers are encouraged to consider ergonomic factors in the workplace to prevent musculoskeletal disorders.
• Inspections: TOSHA compliance officers conduct inspections of workplaces without advance notice to ensure compliance with health and safety standards. Employers are granted the right to request an inspection, and employees can also file complaints if they believe violations exist.
• Reporting and Recordkeeping: Employers are required to report work-related fatalities within 8 hours and hospitalizations, amputations, or losses of an eye within 24 hours. Additionally, employers must keep records of work-related injuries and illnesses and post a summary of these records from February 1 to April 30 each year.
• Workers’ Compensation: In case of a workplace injury or illness, Tennessee's workers' compensation program provides benefits to the injured employee, including medical expenses, income benefits, and rehabilitation support.
• Whistleblower Protections: Employees who report workplace safety violations are protected under both state and federal laws. Retaliation against employees for exercising their rights under safety and health regulations is prohibited.

Workplace safety is not just the responsibility of the employer; employees also play a vital role. They are encouraged to actively participate in safety training, follow all safety procedures, wear the provided PPE, and report any unsafe conditions or practices.

In conclusion, Tennessee's approach to workplace safety involves regulatory requirements to promote a safe working environment, while also encouraging a collaborative culture of safety between employers and employees. By ensuring rigorous adherence to safety standards, the state aims to minimize workplace injuries and illnesses and safeguard the wellbeing of its workforce.

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TN Labor Laws: Everything You Need to Know

TN labor laws are legal protections to help employees and employers stay safe and above board. 8 min read updated on February 01, 2023

Updated July 20, 2020:

TN Labor Laws

TN labor laws are legal protections to help employees and employers stay safe and above board. There are numerous labor laws in Tennessee that are either state or federally mandated and regulated.

Tennessee Minimum Wage

Employers in Tennessee must abide by the federally-mandated minimum wage because the state does not have a separate, higher minimum wage. Currently, the federal minimum wage is $7.25 per hour. However, employees who earn tips as part of their regular pay structure can be paid a lower minimum wage, at $2.13 per hour. If employees do not make enough in tips to bring their pay to $7.25 per hour, their employer is required to make up the difference.

Prevailing Wage in Tennessee

According to the most recent data, listed in 2014, the Tennessee prevailing wage has a large range, from $12.89 to $26.23 per hour. The prevailing wage is the hourly wage paid to the majority of mechanics, laborers, and workers in regard to public works.

State-funded highway project rates are set each year by the Tennessee Prevailing Wage Commission. Highway projects that get federal funds have a prevailing wage requirement.

Overtime Laws in Tennessee

There are currently no laws addressing overtime pay in Tennessee. However, there are federal protections in place for employees who work overtime. Federal laws addressing overtime are regulated by the United States Department of Labor Wage and Hour Division.

Federal law regulates that anything more than 40 hours worked in a single workweek is subject to one and a half times the employee's normal pay rate for overtime pay. In general, exempt employees are not eligible for overtime compensation. In addition, employees working on a live-in or domestic basis are not required to receive overtime pay.

State law in Tennessee does state that employers are required to sign specific posters and information on the rights of employees. These posters give specific information regulated under the Fair Labor Standards Act .

Tennessee professionals who make more than $455 per week are exempt from overtime laws in the state. In addition, on-call emergency workers generally don't receive overtime pay. Employers do not have to pay overtime wages to independent contractors .

Break and Meal Laws in Tennessee

Federal law does not require employers to offer breaks. However, if employees are offered short breaks during the day for rest, they must be paid for these break times. A short rest break is defined as a break ranging from five to 20 minutes.

The majority of employers in Tennessee are required to offer meal breaks to employees. These breaks do not need to be paid unless the employee has to work through it. Employers are not required to allow employees to leave the premises during their meal break, but employees must be relieved of all work duties during this time.

A meal break is generally required to last at least 30 minutes. This 30-minute break is required for employees working six hours in a row.

Certain employees, such as those who are employed in food or beverage positions and get tips have the right to waive their meal break. It is unlawful for an employer to coerce or require an employee to waive their meal break. Specific steps must be taken to have a meal break waived:

• A written waiver policy must be posted in the building
• The policy has to include a waiver form
• The policy must also inform employees they have a right to their meal break unless it is waived
• The policy needs to state how long the waiver lasts
• The policy has to state how the waiver may be rescinded by the employee and/or employer
• The employee requests the meal break waiver in writing
• The employer consents to the written request

In addition to these breaks, both state and federal law requires employers to give breastfeeding mothers adequate breaks to express their breastmilk for the first year of the employee's baby's life.

Tennessee Severance Pay Laws

The state of Tennessee does not require employers to offer severance pay . Employers who offer this benefit must always comply with their employment contracts or established policy on severance pay.

Tennessee Child Labor Laws

Children in Tennessee are legally allowed to start working at the age of 14. At this age, they are limited to working up to three hours a day and up to 18 hours a week. They must be done with work no later than 7 p.m. during the school year. During the summer, these regulations are relaxed, allowing teenagers to work up to eight hours a day to a maximum of 40 hours per week, with an end time of 9 p.m.

There are no hour restrictions for employees ages 16 and 17. However, these employees cannot be required to work during normal school hours. They also cannot be required to work later than 10 p.m. on school nights. However, with parental permission, 16 and 17-year-olds can work up to three nights a week as late as midnight.

Tennessee Leave Laws

Employers in Tennessee are not required to offer employees paid or unpaid vacation time. They are also not required to offer paid sick leave.

Employers are required to abide by the federal Family and Medical Leave Act ( FMLA ). This law allows eligible employees to have a total of up to 12 weeks per year of unpaid medical leave to care for themselves or a family member, or in the case of the adoption or birth of a child. While employees are on FMLA leave , employers are required to keep up their group health insurance benefits . In addition, employees' positions are to be reinstated when they return from leave.

On top of FMLA, Tennessee law allows employees to take up to an additional four months unpaid time off work for adoption, pregnancy, childbirth, and nursing. There are restrictions to this. The employee must have worked for the employer for the last 12 months. The employer has to also have at least 100 full-time employees to be subject to this law.

Under the Uniformed Services Employment and Reemployment Rights Act (USERRA), employees have the right to take a leave of absence for military service, whether it be state or federal. It is illegal to refuse to hire or to fire employees because they are in the National Guard. Employees can't be retaliated against as a result of taking time off work for the required National Guard training and drills.

Employees who have a family member who was seriously injured during his or her military duty can take up to 26 weeks of unpaid time off work in a year for caregiving.

Employers are required to allow employees to have paid time off work if they are called for jury duty. However, employers can require a change in shift on the day before or during the jury duty. Allowing an employee up to three hours of paid time off work to vote in elections is part of Tennessee labor law.

Tennessee Right to Work

Union membership and other similar monthly payment memberships cannot be required by employers in Tennessee. Keep in mind that this is subject to change because right to work laws are extremely controversial and subject to challenges.

Tennessee At-Will Employment

Because Tennessee is an at-will employment state, employees can quit their job at any time for any reason. In addition, employers are legally allowed to fire, suspend, or hire employees at any time, for any reason, other than legally protected causes.

Federal law protects employees from several types of discrimination, including discrimination based on:

• Pregnancy status
• National origin
• Genetic information

All employers who have 15 employees or more are subject to federal anti-discrimination laws. State law offers these protections to employees who work for a company with eight or more employees.

Harassment in the workplace is also illegal. This is defined as unwelcome and unwanted actions or statements based on protected classes such as disability and race. These unwelcome comments result in an offensive and hostile work environment.

Employees who report harassment or other legal violations to the proper authorities cannot be retaliated against.

Tennessee Labor Law Enforcement Agency

The Labor and Statistics Division of the Tennessee Department of Labor and Workforce Development oversees and enforces child labor laws, prevailing wage, and wage regulation in the state.

Employees who feel they were discriminated against based on a protected trait can directly contact the Tennessee Commission on Human Rights at 615-741-5825. Complaints can also be filed online. Discrimination complaints can also be filed with the Equal Employment Opportunity Commission at 1-800-669-4000 or online.

Tennessee Employment Law Penalties

Employers who violate any employment laws in Tennessee may be subject to civil or criminal penalties:

• Employing children under 14 is a Class D felony, which can be punished with up to 12 years in prison and a fine of up to $125,000 for a corporation or $5,000 for an individual.
• Misrepresenting wages in a new-hire contract is a Class C misdemeanor, with fines up to $50 and up to 30 days in jail.
• Failing to pay wages is a Class B misdemeanor, getting up to 6 months in jail and up to a $500 fine. Additional civil penalties of $500-$1,000 per offense may be assessed.

Tennessee Workplace Injuries and Safety

Employers are required by the Occupational Safety and Health Act (OSHA) to provide a safe and healthy workplace. Working conditions must also be safe and healthy, and include the proper training and safety equipment depending on the industry.

All employees can request an inspection from OSHA if they feel there are safety violations or health concerns in their workplace. Employers are prohibited from seeking retaliation against employees who are concerned about hazardous or unsafe working conditions.

For the most part, employers in Tennessee are required to have worker's compensation insurance. This insurance helps cover costs for employees who become ill or injured on the job. Proper worker's compensation insurance covers part of the employee's normal pay, as well as covers necessary medical and vocational rehabilitation treatments.

Tennessee Unemployment Benefits and Insurance

Employees who are out of work through no fault of their own, such as those who were laid off, may be eligible to receive unemployment benefits. Tennessee employees are required to meet specific pay requirements to qualify for these benefits.

Eligible employees can receive up to a maximum of $275 per week for up to 26 weeks to help offset the financial hardship of losing a job. Keep in mind that employees are required to look for a new job during the time they are receiving unemployment.

Employees who received group health insurance through the company they worked for may be able to continue their insurance benefits after dissolving their relationship with the company. Those who choose to accept this insurance option are required to pay not only their portion of their insurance premium but the portion the company paid and an additional 2 percent for administrative fees.

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DOL Explains When Employees Must Be Paid for Travel Time

Jul 6, 2018

Eighty years ago the Fair Labor Standards Act (FLSA) established federal minimum wage and overtime requirements for hourly employees. The law’s basic tenet seems straightforward: Employers must pay employees for their “work.” Yet for many employers, compliance with the FLSA on issues such as employee travel time continues to be problematic because the FLSA does not really explain when an employee is at “work.”

The FLSA and Portal-to-Portal Act

The Supreme Court initially explained that “work” time means when an employee’s activities are controlled or required primarily for the benefit of the employer. Congress subsequently added some specifics to the Supreme Court’s expansive definition. The Portal-to-Portal Act, an amendment to the FLSA, provides that employee work time does not include:

(1) Travel to and from the actual place of performance of the principal activity the employee is employed to perform; or

(2) Activities that are undertaken before or after the employee’s principal work activity.

Three Scenarios and DOL’s Opinion Letter FLSA 2018-18

Recently, the U.S. Department of Labor (DOL) issued an opinion letter in response to a company’s questions about travel time pay for a group of hourly employees who repair, inspect and test construction cranes. The employees do not have a fixed work location; they travel to various customer locations each day. They usually work eight to twelve hour days servicing cranes, and generally start work at around 7:00 a.m. Depending on the availability of parts and other factors, the employees may need to stay in a hotel overnight and return in the morning to complete a job. Employees are provided company vehicles that may be used for both work and personal matters.

Three travel time scenarios were considered by the DOL:

(1) Employee travel time from home to the company’s office, using a company vehicle, to obtain a job itinerary and then continue on to various customer locations. Travel time from home to office varies from 15 minutes to an hour, depending on where the employee lives.

(2) Employee travel time from home directly to a customer location; and

(3) Employee travel time by plane on a Sunday from home to an out-of-state destination for a company training that begins at 8:00 a.m. on Monday. The training continues through Friday, with return travel home on Friday after class, or occasionally on Saturday, depending on flight availability.

The first two scenarios involve common commutes to and from work. Under the Portal-to-Portal Act, employees do not need to be paid for time spent commuting between home and work. This generally holds true, even when the employee travels directly from home to different job sites, unless the commute time involved is extraordinary. Once the employee has arrived at the job, however, FLSA regulations require payment for all travel time between job sites during the day. Use of a company-provided vehicle within the normal commuting area typically does not convert the employee’s ordinary commute into compensable work time.

Scenario three implicated how to account for employee travel time away from home, both on the weekend and overnight. Travel away from home is clearly worktime when it cuts across the employee’s usual work day; the employee is simply substituting travel for usual job duties. This also includes travel time on Saturday and Sunday that corresponds to the employee’s normal working hours on other days of the week. The DOL also noted that an employee must be paid for all time the employee is actually required to work while on travel, irrespective of whether or not it falls within the employee’s regular work day.

What Does this Mean to You?

Calculating employee travel time can pose a significant challenge for many employers. There are multiple factors you must take into account, even when an employee is traveling within his home territory. There are no bright lines to establish when an employee has strayed outside his normal commuting area, converting what would have been an unpaid commute into time on the clock. The FLSA requires employers to maintain accurate time records for employees; a failure to do so can result in significant statutory damages and attorneys’ fees.

If you find yourself facing such employee travel circumstances as described here, the employment law attorneys at Bean, Kinney & Korman can assist in evaluating your company’s particular environment and help craft a reasonable solution that will address the situation.

• R. Douglas Taylor, Jr.

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• http://www.dol.gov/compliance/topics/wages-other-travel.htm

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• Quick and Easy Guide to Labor & Employment Law: Tennessee

This state-specific guide covers labor and employment case law, statutes, rules, and regulations that HR professionals and clients often encounter or have questions about in Tennessee.

Disclaimer: These materials do not constitute legal advice and should not be substituted for the advice of legal counsel.

Guide last updated August 2023.

At-Will Employment

The employer/employee relationship in Tennessee is governed by the at-will employment doctrine. This means that either party may terminate the relationship at any time, with or without cause, and with or without notice. There is a public policy exception, however, that an employer shall not discharge an employee solely for refusing to participate in, or refusing to remain silent about, illegal activities. Tenn. Code Ann. § 50-1-304 . Other exceptions to the at-will doctrine are that an employer may not terminate an employee for being called to military service, voting in elections, exercising the right of association, wage garnishments, filing a workers' compensation claim, and being called to jury duty. In addition, an express agreement (e.g., employment contract) or statute could narrow or limit the at-will doctrine. Further, under Tennessee law, an employee may maintain a claim for tortious interference with their at-will employment relationship against a third party. Forrester v. Stockstill , 869 S.W.2d 328, 330 (Tenn. 1994) .

Right-to-Work Laws

Tennessee is a right-to-work state, and its laws governing the same are found at Tenn. Code Ann. § 50-1-201, et seq . An employer cannot condition employment upon membership or non-membership in any labor union or labor organization. Tenn. Code Ann. § 50-1-201 . Further, an employer cannot deny employment due to an individual's payment or refusal to pay dues, fees, assessments, or other charges associated with an employee organization or labor union. Tenn. Code Ann. § 50-1-203 .

Immigration Verification

The Tennessee Lawful Employment Act (TLEA) applies to all employers who have 6 or more employees. Tenn. Code Ann. §§ 50-1-701, et seq . As of January 1, 2023, the TLEA requires all employers who have 35 or more employees to verify work authorization status of employees using the E-Verify program and maintain E-Verify case results. Employers with fewer than 35 employees may either utilize the E-Verify program or request and maintain a copy of any of the documents listed in §50-1-703(a)(1)(A) . The TLEA applies to employees working in or outside the state of Tennessee, as well as "non-employees" who are paid directly by the employer.

To comply with the TLEA's E-Verify requirements, an employer must:

• Enroll in the E-Verify program prior to hiring an employee;
• Verify the work authorization status of the employee hired by using the E-Verify program; and
• Maintain an E-Verify case result for each employee that shows that the employee is authorized to work, whether on the E-Verify Quick Audit Report, the E-Verify User Audit Report, or the individual employee E-Verify case verification result. The E-Verify case result must be visible showing the work authorization status.

NOTE : By requiring compliance with respect to "non-employees" as well, the TLEA essentially imposes a new documentary requirement for users of self-employed vendors because the I-9 is completed only for employees under federal law.

Failure to comply will result in the enforcement of monetary fines of increasing severity. The TLEA requires the same retention of documents as I-9s: one year after termination or three years after hire, whichever is later. To simplify compliance, it is recommended that an employer keep both the TLEA verification document and the I-9 for at least three years after an employee's departure.

For more information about upcoming changes in Tennessee immigration verification requirements, click here to see Baker Donelson's Immigration Blog.

Drug Testing

Employers may discharge an at-will employee who tests positive on a random drug test, and it is misconduct for an employee to refuse to take a drug or alcohol test. In addition, the Tennessee Drug Free Workplace Act, Tenn. Code Ann. § 50-9-101, et seq . , provides certain benefits to certified employers, including a 5 percent discount on the employer's workers' compensation insurance premium. Moreover, if an employee working in a certified Tennessee Drug Free Workplace test positive on a post-accident drug screen, the employee forfeits eligibility for workers' compensation benefits unless the employee proves that intoxication did not cause the accident. An employee fired for a positive drug screen is presumed ineligible for unemployment compensation.

Covered employers must notify applicants in a position's vacancy announcement if the position requires drug and alcohol testing. Employers must likewise post a notice of their drug- and alcohol-testing policy in their workplace and allow employees or applicants to review copies of the policy during regular business hours.

An amendment to the law enacted in 2017 requires a covered employer "who has employees who are healthcare practitioners for the purposes of Tenn. Code Ann. 63-1-126 [to] report a healthcare practitioner who tests positive for any drug on any government or private sector pre-employment or employer-ordered confirmed drug test, or who refuses to submit to a drug test, to the [D]epartment of [H]ealth and the practitioner's licensing or certifying board" if the practitioner fails to produce a lawful prescription for the drug or a valid medical reason for using the drug, or to report to the state's substantive abuse peer assistance or treatment program of the health care provider's board.

Jury Duty Leave

Employers shall excuse the absence of an employee summoned to jury duty. For the absence to be excused, the employee must exhibit the summons to the employer on the next day the employee is engaged in employment. For such excused absences, employers with five or more employees must pay the summoned employee their "usual compensation" minus, at the employer's discretion, the jury service fee for such time spent serving on jury duty. The employer is not required to compensate an employee for more time than was actually spent serving and traveling to and from jury duty. The employer is also not required to compensate an employee who has been employed on a temporary basis for less than six months. The employee does not have to return to work on the day or days in which the employee's responsibility for jury duty exceeds three hours.

Employees who work the night shift should be excused from working the shift preceding their first day of jury duty, as well as shifts occurring within 24 hours after a day of jury service lasting more than three hours. Employers must not discriminate against or discharge an employee for serving on jury duty if the employee gives the required notice. Tenn. Code Ann. § 22-4-106 .

Voting Leave

An employer must provide an employee with a reasonable period of time, not to exceed three hours, necessary to vote during the time the polls are open in the county where the employee is a resident. If the work hours of an employee commence at least three hours after the opening of the polls or end at least three prior to the closing of the polls, the time off for voting is not available.

To be eligible for this time off, an employee must notify the employer before 12:00 p.m. of the day before the election. A voting employee who is properly absent from work so that they may vote may not be subjected to any penalty or reduction in pay for such absence. Employers may specify the hours during which the employee may be absent. Tenn. Code Ann. § 2-1-106 .

Parental and Adoption Care Leave

An employee who works for an employer with 100 or more employees at the jobsite or location and who has been employed for at least 12 consecutive months as a full-time employee may be absent from employment for a period not to exceed four months for the purpose of adoption, pregnancy, childbirth, and nursing of an infant, where applicable. Tenn. Code Ann. § 4-21-408 .

This leave runs concurrently with the Family and Medical Leave Act (FMLA) and may be with or without pay at the discretion of the employer. The FMLA entitles eligible employees to take twelve workweeks of unpaid, job-protected leave in a 12-month period. Eligible employees are entitled to such leave for the birth of a child within one year of birth and the placement of a child for adoption or foster care within one year of placement. The FMLA also provides leave for specified medical reasons.

An employee who gives at least three months' advance notice of their anticipated date of departure, the length of leave, and their intention to return to full-time employment after leave, will be restored to the previous or similar position with the same status, pay, length of service credit, and seniority. An employee who does not give three months' advance notice because of a medical emergency that necessitates that the leave begin earlier than originally anticipated, or because their notice of adoption was received less than three months in advance, does not forfeit the right to parental leave. If an employee's job position is so unique that the company cannot, after reasonable efforts, temporarily fill the position, then the employee has no right to reinstatement at the end of the leave.

An employee taking parental or adoption care leave shall not affect the employee's right to receive vacation time, sick leave, bonuses, advancement, benefits, plans, or programs for which the employee was eligible for at the date of their leave.

If an employer finds that the employee has used the period of leave to actively pursue other employment opportunities or has worked part- or full-time for another employer during the period of leave, the employer shall not be liable for failure to reinstate the employee at the end of the period of leave.

Tennessee Pregnant Workers Fairness Act

Every employer with at least 15 employees must make a reasonable accommodation for an employee's or prospective employee's medical needs arising from pregnancy, childbirth, or related medical conditions, unless such accommodation would impose an undue hardship on business operations. Possible accommodations include, but are not limited to, making existing facilities used by employees readily accessible and usable; providing more frequent, longer, or flexible breaks; modifying food or drink policies; providing assistance with manual labor and limits on lifting; and allowing flexible schedules for prenatal visits.  Employers may not require an employee to take leave if another reasonable accommodation can be provided.

Employers may, if required of other similarly situated employees, request that an employee with a medical need relating to pregnancy, childbirth, or related medical conditions provide medical certification from a healthcare professional if the employee is requesting a reasonable accommodation related to a temporary transfer to a vacant position, job restructuring, light duty, or an accommodation that requires time away from work. Tenn. Code Ann. § 50-10-101 et seq .

Volunteer Firefighter Leave

Employers may not terminate an employee who is a volunteer firefighter solely because the employee is absent or late to work when acting as a volunteer firefighter to respond to an emergency. Employees may leave work to respond to a call, and the employer may not charge against the employee's regular pay any time they are absent from work due to such emergency. An employee may also take off the next scheduled work period within 12 hours of the emergency if the employee assisted in fighting a fire for more than four hours or worked for more than four hours the previous day or night in an emergency. Employees may use vacation or sick time under these circumstances or take unpaid time off work if vacation or sick time is not available. Employees responding to such an emergency must make a reasonable effort to notify the employer that they may be absent or late.

If an employee is absent to respond to an emergency, the employer has the right to request a written statement from the supervisor or acting supervisor of the volunteer fire department stating that the employee responded to an emergency, including the time and date of the emergency. Tenn. Code Ann. § 50-1-307 ; Tenn. Code Ann. § 50-1-309 .

Veterans Day Leave

Employers must provide Veterans Day Leave to employees who are former members of the United States armed forces or who are current or former members of a reserve or Tennessee national guard unit who were called into active military service unless doing so will impact public health or safety or cause the employer significant economic or operational disruption. This leave is considered an unpaid holiday, and an employee must give an employer at least one-month's written notice of their intent to utilize the leave. Tenn. Code Ann. § 15-1-105 .

Annual Paid Leave for Public Employees

Each officer and employee of the state government who works 1,600 hours or more in a fiscal year is entitled to accrue paid leave annually. An employee shall be granted such leave whether compensated on hourly, daily, monthly, or piecework basis.

Details regarding accrued annual leave and the rate of accrual can be found in Tenn. Code Ann. § 8-50-801 .

Sick Leave for Public Employees

Each officer and employee of the state government who is scheduled to work 1,600 hours or more in a fiscal year is entitled to one day of sick leave for each month of service. An employee shall be granted such leave whether compensated on hourly, daily, monthly, or piecework basis. Sick leave shall be cumulative for all earned days not used. Saturdays, Sundays, and official holidays within a leave period are not counted as leave, unless such days are considered work days for the particular employee. Part-time employees, employees holding temporary positions for less than six months, seasonal employees, and emergency employees in the preferred service are excluded from this requirement. Sick leave may only be used for illness or disability due to an employee's accident, an employee's exposure to contagious diseases, illness or death in the employee's immediate family, or an employee's parental leave.   

See Tenn. Code Ann. § 8-50-802 for additional details regarding sick leave.

Other Leave

The State of Tennessee does not require private employers to offer to employees paid vacation or sick leave. For details, see Tenn. Code Ann. § 50-2-103(a)(4) .

Whistleblower Laws

State employees are encouraged to report violations of state or federal law or regulations, fraud in government programs, misappropriation of government resources, health and safety dangers, mismanagement, and abuses of authority. Whistleblowers are protected from retaliation for reporting violations of state and federal laws and regulations, fraud, misappropriation of resources, health and safety dangers, gross mismanagement, gross waste of government funds, or gross abuse of authority. Employees may not be retaliated against for refusing to carry out orders if the order violates state or federal law, regulations, written policy or procedure, or orders that pose an unreasonable health and safety risk. Tenn. Code Ann. § 8-50-116 .

Pursuant to the False Claims Act, employers may not make, adopt, or enforce any rule, regulation, or policy that prevents employees from disclosing information to a government or law enforcement agency or from acting in furtherance of a false claims action, including investigating, initiating, testifying, or assisting in an action filed or to be filed under § 4-18-104 . Likewise, employers may not discharge, demote, suspend, threaten, harass, deny promotion to, or in any other manner discriminate against an employee in the terms and conditions of employment because of lawful acts done by the employee on behalf of themself or others in disclosing information to a government or law enforcement agency or in furthering a false claims action, including investigation for, initiation of, testimony for, or insistence in an action filed or to be filed under § 4-18-104 . Tenn. Code Ann. § 4-18-105 .

Smoking Laws

Under the "Children's Act for Clean Indoor Air," Tenn. Code Ann. § 39-17-1601, et seq . , smoking is prohibited in certain areas frequented by children, including, but not limited to, health care facilities, museums, schools, residential treatment facilities, and zoos. No Smoking signs must be prominently displayed.

Under the Non-Smoker Protection Act, Tenn. Code Ann. § 39-17-1801, et seq . , smoking is prohibited in all enclosed public areas not specifically exempted by statute, including, but not limited to, restaurants, banks, laundromats, manufacturing facilities, professional offices, and other workplaces. The Non-Smoker Protection Act has several exemptions, including, but not limited to, age-restricted venues; hotel rooms designated as smoking rooms; and the premises of a manufacturer, importer, or wholesaler of tobacco products. No smoking signs must be prominently displayed.

Break Time to Express Milk

An employee must be given reasonable unpaid break time each day to express breast milk for that employee's infant child, unless providing the break would unduly disrupt the employer's operations. If possible, the break time must run concurrently with any other break time provided. The employer must make reasonable efforts to provide a private location other than a toilet stall for the employee's use. Tenn. Code Ann. § 50-1-305 .

In addition, the federal Fair Labor Standards Act (FLSA) requires employers to provide reasonable break time for an employee to express breast milk for her nursing child for one year after the child's birth each time such employee has need to express the milk.

Meal Breaks

Subject to exceptions under the statute, an employer must allow each of its employees one 30-minute rest break or meal period if scheduled to work six or more hours consecutively. Tenn. Code Ann. § 50-2-103(h) . The meal break may not be scheduled during or before the first hour of scheduled work activity.

Employees who are principally employed in food or beverage service, receive tips in the course of their employment, and report those tips to their employer may waive the 30-minute break if certain conditions are met.

Minimum Wage, and Overtime

The State of Tennessee has no law regulating minimum wage or overtime – federal laws apply.

Timing of Wage Payments

Wages must be paid at least once per month. Tenn. Code Ann. § 50-2-103(a)(1) . If an employer pays employees once per month, payments must be made no later than the fifth day of the month. If an employer pays employees two or more times per month, payments must be made no later than the fifth and the twentieth days of the month. Employers must post and maintain notices in at least two conspicuous places setting forth the wage payment schedule.

After separation, an employee must be paid all wages due and owing, including all accrued and unused vacation or other compensatory time if the employer's policies provide for such time. There is no requirement for Tennessee employers to provide paid vacation or other compensatory time. An employer must pay the wages by the later of the next regular payday or 21 days from the date of termination. Tenn. Code Ann. § 50-2-103(a)(4), (g) .

In the event an employee passes away without designating a beneficiary with their employer, Tennessee law allows employers to pay the last wages to the surviving spouse or children of a deceased employee, not to exceed $10,000, and other benefits due the deceased employee without a court order. Tenn. Code Ann. § 30-2-103 . If the sum exceeds $10,000, the excess shall be paid to the court representative as ordered by the court.

Unemployment Insurance

Unemployment insurance benefits provide income to individuals who have lost work through no fault of their own. The benefits are intended to partially offset the loss of wages while an unemployed worker searches for suitable work or until an employer can recall the employee to work. Nothing is deducted from the employee's wages to pay for this coverage. Unemployment benefits are administered by the Department of Labor and Workforce Development, and additional information regarding the benefits may be accessed at www.tn.gov/workforce.html .

Workers' Compensation

The Tennessee Workers' Compensation Act, Tenn. Code Ann. § 50-6-101, et seq . , applies to every employer in Tennessee with five or more employees, or those in the construction and coal mining industries. Employees who suffer injuries and/or occupational diseases arising out of and in the course of their employment may be eligible to receive several types of benefits under the Act. The Act is administered by the Department of Labor and Workforce Development and additional information regarding the Act may be accessed at www.tn.gov/workforce/injuries-at-work/injured-workers.html . The most recent version of the Act applies to injuries occurring on or after July 1, 2014. Injuries occurring prior to July 1, 2014, will be governed by the prior version.

Under the Act, a workplace injury must be immediately reported to the employer; failing to report an injury in a timely manner may result in a denial of benefits. Finally, an employer may be held liable to a discharged employee if that employee's claim for benefits under the Act was a "substantial factor" in the employee's termination. See Clanton v. Cain-Sloan , 677 S.W.2d 441, 445 (Tenn. 1985) ; Coffey v. Fayette Tubular Prod ., 929 S.W.2d 326, 328 (Tenn. 1996) .

Child Labor

The Tennessee Child Labor Act of 1976 is found at Tenn. Code Ann. § 50-5-101, et seq . Tennessee has prohibited occupations for minors, Section 50-5-106 , and various rules concerning the time minors may work, based on age and whether school is in session. Tenn. Code Ann. §§ 50-5-103-105 . A minor under 14 may not be employed unless there is an applicable statutory exemption.

In employing a minor, employers must "require proof of the age of the minor employee or prospective employee by requiring the minor to provide the employer with a copy of the minor's birth certificate, passport, driver's license or state issued identification." Tenn. Code Ann. § 50-5-109 . If the above evidence is not available, a parent or guardian shall appear before a judge in the minor's county of residence and make an oath regarding the age of the minor. Id .

Under Tennessee law, a private business is permitted to prohibit the possession of weapons by employees. A notice to this effect must be posted. Tenn. Code Ann. § 39-17-1315(b)(1) . Specific requirements for the notice may be found at Tenn. Code Ann. §39-17-1359 . Tennessee law permits an employee to keep a firearm in their personal vehicle at work, as long as it is hidden from view or locked in the trunk, glove box, or secure container. Tenn. Code. Ann. §39-17-1313(a)(2) .

Pursuant to Tenn. Code Ann. § 39-17-1309 , Tennessee public colleges and universities must allow full-time employees who possess enhanced handgun-carry permits to carry handguns on campus. Any employee who elects to carry a handgun must provide written notification to the law enforcement agency with jurisdiction over the property owned, operated, or controlled by the employing institution. The employee's name and any other information that might identify the employee as a person who has elected to carry a handgun on institution grounds will be confidential. The law also provides that the employee is not acting within the course and scope of employment by carrying or using the handgun is not immune from personal liability, not entitled to workers' compensation for injuries arising from the use or carrying of the handgun, and not permitted to carry the handgun openly or in a visible manner. In addition, the employee may not carry the handgun in gymnasiums, stadiums, or auditoriums when school-sponsored events are in progress, in disciplinary meetings, in meetings regarding tenure issues, in hospitals or places where mental or medical health services are provided, or in any area where a provision of state or federal law, except the posting provisions of Tenn. Code Ann. § 39-17-1359 , prohibits the carrying of a handgun on that property.

Effective July 1, 2021, Tennessee law permits concealed or open carry of a handgun without a permit as long as the person is 21 years of age and in a place they may lawfully be present. For members of the armed forces (and honorably discharged veterans), the minimum age is lowered to 18. Certain restrictions still apply.

Additional Laws & Regulations

Termination for Use of Certain Products. An employer shall not terminate an employee solely for participating or engaging in the use of an agricultural product not regulated by the alcoholic beverage commission that is not otherwise proscribed by law, if such employee participates or engages in such use in a manner which complies with all applicable employer policies. Likewise, no employee shall be discharged or terminated solely for participating or engaging in the use of the product not regulated by the alcoholic beverage commission that is not otherwise proscribed by law if the employee participates or engages in the activity during times when the employee is not working. Tenn. Code Ann. § 50-1-304(d) .

Tennessee Human Rights Act (THRA) . The Act, which may be found at Tenn. Code Ann. § 4-21-101, et seq . , mimics Title VII of the Civil Rights Act of 1964 and the Age Discrimination in Employment Act of 1967 in that it prohibits discrimination because of an individual's race, creed, color, religion, sex, age, or national origin. Further, like the Pregnancy Discrimination Act of 1978 , the Act prohibits discrimination based on pregnancy. The Act applies only to employers with eight or more employees.

Tennessee CROWN Act. The CROWN Act applies to all employers and provides that an employer may not discriminate against an employee for wearing their hair in braids, locs, twists, or in another manner that is part of the cultural identification of the employee's ethnic group or that is a physical characteristic of the employee's ethnic group. The Act provides for exceptions for public safety employees if it would prevent the employee from performing the essential functions of the employee's job or for policies that an employer must enact to adhere to common industry safety standards or to comply with applicable laws or regulations. Tenn. Code Ann. § 50-1-313 .

Tennessee Disability Act (TDA) . The Act, which applies to private employers with 8 or more employees and may be found at Tenn. Code Ann. § 8-50-103 , mirrors the Americans with Disabilities Act of 1990 , as amended, in that it prohibits discrimination on account of an individual's physical, mental or visual disability. The Act provides that there shall be no discrimination in the hiring, firing, and other terms of employment as a result of the disability "unless such disability to some degree prevents the applicant from performing the duties required by the employment sought or impairs the performance of the work involved." It further prohibits discrimination against a blind person because the person uses a guide dog. However, unlike its federal counterpart, the TDA does not impose a duty on employers to make reasonable accommodations to accommodate a disabled employee. Bennett v. Nissan North America, Inc., 315 S.W.3d 832 (Tenn. App. 2009) .

Tennessee Public Protection Act (TPPA) . This Act, which may be found at Tenn. Code Ann. § 50-1-304 , provides a retaliatory discharge claim for an employee and applies to both public and private employers. The person must prove that they (1) were an employee; (2) refused to participate in or to remain silent about illegal activities; (3) were terminated by their employer; and (4) had an exclusive causal relationship between the plaintiff's refusal to participate in or remain silent about illegal activities and their termination. The term "illegal activities" includes activities that are in violation of criminal or civil codes of Tennessee or the United States, or any regulation intended to protect the public health, safety, or welfare. The term excludes any activities prohibited under § 8-50-103 or federal laws prohibiting discrimination in employment.

In 2014, the governor signed legislation that amended the THRA, TPPA, and the TDA. Some of the major changes include:

• Creating a tiered damages cap, based on the number of employees: $25,000 (for eight–14 employees), $50,000 (15–100 employees), $100,000 (101–200 employees), $200,000 (for 201–500 employees) and $300,000 (more than 500 employees). The caps apply to non-pecuniary damages including future pecuniary loss, emotional pain and suffering, inconvenience, mental anguish, loss of enjoyment of life, and other non-pecuniary losses. The caps do not apply to back pay, interest on back pay, front pay, or equitable relief. Tenn. Code Ann. § 4-21-313 .
• Removing individual liability for supervisors and other agents under the THRA for unlawful discriminatory acts of an employer. Tenn. Code Ann. § 4-21-301 .
• Eliminating the separate common law cause of action for retaliatory discharge and eliminating the requirement that the employee externally "blow the whistle" by reporting illegal activity to someone outside of the employer.
• Immunizing private employers with fewer than eight employees from liability under the TDA. This means that both the TDA and THRA have the eight-employee threshold, but not the TPPA, which protects employees who have been subject to retaliatory discharge for reporting illegal acts.
• Providing that an employee may not maintain an action under the THRA, TDA, or the TPPA in state court while maintaining an action under the same "common nucleus of operative facts" in federal court. Tenn. Code Ann. § 4-21-314 .

Tennessee Equal Pay Act . The Act, Tenn. Code Ann. § 50-2-201, et seq . , mimics the Equal Pay Act of 1963 in that it prohibits discrimination between employees in the same establishment, on the basis of sex, in their compensation for comparable work.

Polygraph Testing . The Tennessee Polygraph Examiners Act is found at Tenn. Code Ann. § 62-27-101, et seq . An employer cannot take personnel action against an employee based solely upon the results of a polygraph examination. Tenn. Code Ann. § 62-27-128 . In addition, federal law significantly limits the use of polygraph tests by employers.

False or Deceptive Hiring . It is unlawful to induce employment-based on false or deceptive representations, false advertising, or false pretenses concerning the kind and character of the work to be done; amount and character of the compensation to be paid for such work; sanitary or other conditions of the employment; as to the existence or nonexistence of a strike; or other trouble pending between employer and employees at the time of, or prior to, such engagement. Tenn. Code Ann. § 50-1-102 .

Reporting Requirements . Employers are required to provide to the Tennessee Department of Human Services with a report that contains the name, address, hire date, and Social Security number of each newly hired employee. In addition, the report must contain the name, address, and identifying number of the employer (assigned under Section 6109 of the Internal Revenue Code). Tenn. Code Ann. § 36-5-1101, et seq .

Employee vs. Independent Contractor. The Tennessee Marketplace Contractors law provides that a "marketplace contractor" of a "marketplace platform" is not an employee of the marketplace platform for all purposes provided there is a written agreement between the two and certain other conditions are met. The purpose of this statute is to protect certain online digital companies from using workers as independent contractors rather than employees by excluding these workers from the usual rules according to employee status. The terms "marketplace contractor" and "marketplace platform" are specifically defined in the statute. The presumptive effect of this law is to create a more favorable environment for the "gig economy" companies to engage workers without incurring the expense and responsibility of employment. Tenn. Code Ann. § 50-8-101, et seq .

Plant Closing and Reduction in Operations Act . This Act, Tennessee's "Mini-WARN" Act, applies to employers with at least 50, but not more than 99, full-time employees. The Act is very similar to federal WARN, but triggers notice requirements if there is a "mass layoff" of 50 or more full-time employees in a three-month period. Tenn. Code Ann. § 50-1-601, et seq . Employers must send notices to:

• The official union representing the employees or, if not represented, each affected employee
• The Tennessee Commissioner of Labor and Workforce Development

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Employer Insights

Tennessee labor laws - the complete guide for 2024.

by Lori Brown , on Dec 22, 2022 2:45:00 PM

Tennessee labor and employment laws involve a broad area of law governing the employer and employee relationship. Proper compliance with Tennessee labor laws will span federal legislation and regulations as well as those specifically issued by the State of Tennessee. These can be similar or differ in distinct ways. Either way, employers must understand and comply with both. 

In this article, we’re going to dive into Tennessee’s labor and employment laws, giving employers a roadmap for both understanding legislation and compliance with it. For more help, businesses should contact a Tennessee payroll and HR services company or a labor law attorney. 

Tennessee Recruitment & Hiring Laws

Several Tennessee labor and employment laws apply to recruiting and hiring. Let’s break them down here.

Pre-Hire Medical, Physical or Drug Testing

In Tennessee, employers have the right to ask job applicants to complete a pre-hire medical or physical test, as long as it’s job-related. In other words, the test must confirm that the job applicant is fit for duty based on the position being applied for. Through these tests, an employer should be determining whether a potential employee can perform the job’s essential duties with or without accommodation.

However, specific to these exams, employers should not request any medical information that may be protected under specific privacy laws, like the Genetic Information Discrimination Act of 2008 . As such, employers should not have access to a job candidate’s family history or any genetic information.

Tennessee Drug-Free Workplace Program

While Tennessee does not have any comprehensive laws regulating the use of drug or alcohol testing by private employers, businesses can implement a drug-free workplace program in order to qualify for workers' compensation benefits.

According to  Tennessee’s drug-free workplace program , employers who decide to implement such a program must meet specific requirements in order to receive a premium credit on their workers' compensation insurance policies.

To be compliant with state law, an employer may require candidates and employees to submit a test for drugs or alcohol. Subjects who fail to pass the test must be terminated. Anyone who tests positive to do prescribed medications from the last six months are exempt from being terminated. 

Employees must also be notified that, as a condition of employment, they must refrain from working or reporting to work with the presence of drugs or alcohol in their bodies. Employees who refuse to submit a test forfeit all legibility for workers' compensation medical and indemnity benefits.

The Tennessee Lawful Employment Act and E-Verify

The Tennessee Lawful Employment Act (TLEA) requires employers in Tennessee to hire and maintain a legal workforce. In other words, employers are required to ensure they are hiring employees that are legally allowed to work in the U.S.

Pre-2017, the TLEA required all private-sector employers to choose either to use E-Verify or to maintain copies of identification or work authorization documents before a new employee could begin work. Effective January 1, 2017, all Tennessee private employers with 50 or more employees must use E-Verify for the employment verification process. 

UPDATE:  Starting January 1st, 2023, employers with 35 or more employees will need to use the Tennessee E-Verify employment verification process. 

New Hire Reporting

Employers are obligated to report Tennessee new hires to the state's Department of Labor and Workforce Development “within 20 days from the date they are hired.” Employers submitting electronically must do so twice a month, every 12-16 days. 

New hire reporting helps the state reduce fraudulent unemployment and workers’ compensation payments. The new hire data allows the Tennessee Department of Labor and Workforce Development to match this data against its active unemployment claims and either stop payments or recover payments made in error.

Employers who fail to submit newly hired information may be fined up to $20 per violation (aka per employee) and up to $400 depending on the exact nature of the violation. As a result, it is critical to maintain compliance with Tennessee New Hire Reporting in order to avoid hefty penalties from piling up. 

Ban the Box Legislation

In 2016, Governor Bill Haslam signed Senate Bill 2440 , enacting a Ban the Box law for Tennessee employers. This law prohibits employers from inquiring about a job candidate’s criminal history on the initial employment application. Although state employers can conduct background checks, they must do so later in the recruiting and hiring process, after they complete the initial screening of job applicants. 

Salary History Questions & Disclosures

Although 19 states and 21 cities have adopted some measure of banning salary history questions in interviews, Tennessee has yet to pass legislation prohibiting employers from asking about a candidate’s salary history in interviews. Additionally, none of Tennessee’s cities have adopted any ban on salary-related questions.

Tennessee Wages and Hour Laws

The Tennessee Wage Regulation Act “protects wage earners from unfair practices regarding pay.” Here, we’re going to discuss some of these protections, such as pay equity, payday regulations, paycheck deductions, breaks and meal periods, and more as a part of your guide to getting payroll right .

Tennessee law has an equal pay act. Under Tennessee Code Annotated Section 50-2-202 , employers may not pay men and women differently, based on sex. Specifically, the law states that employers may not “discriminate between employees in the same establishment on the basis of sex by paying any employee salary or wage rates less than the rates the employer pays to any employee of the opposite sex for comparable work on jobs the performance of which requires comparable skill, effort and responsibility, and that are performed under similar working conditions.” However, an employer may create wage differentials “based on a seniority system, a merit system, a system that measures earnings by quality or quantity of production, or any other reasonable differential that is based on a factor other than sex.”

Paychecks and Wage Payment Timing

When paid, employers may compensate employees in cash or by check. Additionally, if certain conditions are met, an employer may also pay an employee via direct deposit in Tennessee. 

All private employers in Tennessee must also pay employees all wages or compensation no less than once per month, according to Tennessee Payday Regulations . Employers who use a monthly schedule must compensate employees no later than the 5th day of each month for all earned wages in the preceding month.

Employers who use two or more pay periods per month must compensate employees as follows:

• All wages or compensation earned and unpaid prior to the first day of any month shall be due and payable not later than the twentieth day of the month following the one in which the wages were earned.
• All wages or compensation earned and unpaid prior to the sixteenth day of any month shall be due and payable not later than the fifth day of the succeeding month.

With manual payroll processes, managing compliance with things like wage payment timing can be really tough. Businesses looking for an easier path forward should consider contacting a Tennessee payroll services company  for help with modern payroll solutions or services . 

Deductions from Pay

Generally, in Tennessee, an employer may not deduct any expenses or other amounts owed from an employee’s paycheck without the express permission of the employee. This must be agreed to in writing and signed by the employee.

However, like many rules, there are exceptions. Here, an employer may deduct the following expenses without an employee’s authorization:

• Health insurance premiums at the request of the employee; or
• Loans or salary advances.

This is another area where employers must understand which deductions are mandated under federal law without the employee’s permission in addition to the permissible Tennessee deductions mentioned above. For more information on Tennessee paycheck deductions , see the wages and breaks section of the Tennessee DOL website. 

Minimum Wage

Tennessee is currently one of five states with no set minimum wage . As a result, the currently observed minimum wage is the federal minimum wage requirement of $7.25 per hour. 

However, with the creation of House Bill 1577 , it is possible that Tennessee could soon see a minimum wage of no less than $12 an hour, however, the bill has not yet been passed.

Overtime Pay

Tennessee does not have any laws regarding overtime pay, which means federal overtime laws apply. To understand the federal overtime law , employers should review the overtime pay rules under the Fair Labor Standards Act (FLSA) .

Meals and Breaks

Under Tennessee Code Annotated Section 50-2-103 and according to Tennessee meal and rest breaks law , “employees must be provided a thirty (30) minute unpaid meal or rest period if scheduled six (6) consecutive hours, except in workplace environments that by their nature of business provides for ample opportunity to rest or take an appropriate break.” 

Breastfeeding Breaks

There are also Tennessee laws that support and protect breastfeeding mothers . For example, under Tennessee Code Annotated Section 50-1-305 , employers must provide “ a reasonable unpaid break time ” to any employee that needs to express milk for her baby.

This break must run concurrent with any break time already provided by the employer, when possible. Employers must also make reasonable efforts to provide a room or location in close proximity to the work area where an employee can express milk in privacy. This does not include a bathroom stall.

However, according to the statute, “[a]n employer shall not be required to provide break time . . . if to do so would unduly disrupt the operations of the employer.”

Tennessee Benefits Laws

Tennessee employers must understand what is required of them when it comes to laws regarding employee benefits. This includes things such as continuation of coverage laws, laws regarding fringe benefits, and disability benefits.

While Tennessee may not have laws requiring or regulating certain aspects of benefits, it is important that employers hold true to any policies or offerings they have established, in order to reduce legal risk. 

Tennessee "Mini-COBRA" / State Health Care Continuation 

Like health coverage continuation under the federally-enacted Consolidated Omnibus Budget Reconciliation Act (COBRA) , Tennessee also offers a version of this continuation, often called “mini-COBRA.”

Tennessee’s health coverage continuation law applies to employers with between 2 and 19 employees and can potentially cover affected employees for up to three (3) months after the employee’s group health insurance coverage stopped.

Fringe Benefits

There is no Tennessee law that requires or regulates fringe benefits, such as paid time off. There is also no law requiring that an employer pay out an employee for any unused fringe benefits that the employer may offer. However, it's important to keep in mind, employers must comply with what the company's employee handbook says.

Disability Benefits

There is also no Tennessee law requiring that employers provide disability benefits to employees. 

Tennessee Leave, Absence, and Time Off Laws

Similar to other states, Tennessee's labor and employment laws address time off and leaves of absence for employees. Here are some key Tennessee laws for requiring time off or leave for employees that you should know:

• Emergency responder leave
• Jury duty leave
• Military leave
• Maternity leave (for employers with more than 100 employees); and
• Voting leave
• Family Medical Leave

Here, employers need to be careful with the overlap of state and federal law. Typically, the more generous law will govern. For example, there is no Tennessee sick leave law that exists, but the Family and Medical Leave Act (FMLA) will require companies in Tennessee with 50 or more employees to provide eligible employees with up to 12 weeks of unpaid leave each year. 

Employers may also grant the following leaves or time off, which are generally governed by an employee handbook. These often include:

• Bereavement Leave
• Holiday Leave
• Vacation Leave

It’s becoming common practice for employers to grant employees Paid Time Off (PTO), covering both sick and vacation leave. Whether required by law or not, employers must abide by the employee handbook or any other internal policies and procedures that are in place when granting or denying leave or time off.

Military Veteran's Leave

In Tennessee, employers must grant leave to any veteran in their employment for the day of November 11th (Veteran's Day) according to Tennessee Senate Bill 2879 . The day is considered an unpaid holiday for veterans only. 

However, a veteran must provide their employer with at least one month's written notice of their intent to take the holiday off, as well as provide proof of veteran status. The leave must also not cause the employer significant economic or operational disruption. 

Tennessee Health & Safety Laws

Several Tennessee labor and employment laws apply to the health and safety of employees in the workplace. Here’s what you need to know about Tennessee’s health and safety laws.

Smoke-Free Workplace

Tennessee’s Non-Smoker Protection Act , also known as Smokefree Tennessee, became effective in 2007, and prohibits smoking in most enclosed public places, including places of employment. To be compliant with the law, employers must post “no smoking” signs at the entrance of their place of business in addition to informing all employees of the prohibition.

Weapons in the Workplace

Under Tennessee law, employers have the right to prohibit weapons in buildings owned, managed, operated, or otherwise under the employer’s control. This prohibition applies to those employees, potential employees, clients, customers, vendors, and guests who may possess a legal carry permit. To legally ban these weapons, employers must post the appropriate notices of the prohibition . The one primary exception to this rule in Tennessee is that individuals may keep firearms locked away, out of sight in their vehicles, even if they parked in their workplace’s parking lot.

Occupational Safety and Health

Under the Tennessee Occupational Safety and Health Act (TOSHA) , most private employers must “assure safe and healthful workplaces by setting and enforcing standards, and by providing training, outreach, education, and assistance.” Excluded private employers include maritime; USPS contract workers and contractor-operated facilities; certain railroads; Tennessee Valley Authority; military bases; and certain aircraft cabin crew members.

Safe Driving Practices

Under Tennessee law, drivers are prohibited from texting while driving and talking on a handheld mobile device while driving. Adult drivers may use a hands-free device while driving.

Tennessee Fair Employment Laws & Practices

Tennessee has four major laws promoting fair employment practices that employers need to know outside of federal equal opportunity employment law . Here’s what you need to know about each. 

The Tennessee Human Rights Act (THRA)

Similar to Title VII of the Civil Rights Act of 1964, the Tennessee Human Rights Act declares that is illegal for an employer employing eight or more people to “fail or refuse to hire or discharge any person or otherwise to discriminate against an individual with respect to compensation, terms, conditions or privileges of employment because of such individual’s race, creed, color, religion, sex, age or national origin.” The law is maintained by the Tennessee Human Rights Commission .

Title VII , a federal law, requires at least fifteen employees for the law to apply.

The Tennessee Disability Act (TDA)

Codified at Tennessee Code Annotated Section 8-50-103 , the Tennessee Disability Act (TDA) mirrors much of the Americans with Disabilities Act of 1990, a federal law. The TDA prohibits an employer from discriminating against job applicants or employers because of a physical, mental, or visual disability. 

Specifically, the TDA states:

There shall be no discrimination in the hiring, firing and other terms and conditions of employment of the state of Tennessee or any department, agency, institution, or political subdivision of the state, or of any private employer, against any applicant for employment-based solely upon any physical, mental or visual disability of the applicant, unless such disability to some degree prevents the applicant from performing the duties required by the employment sought or impairs the performance of the work involved. Furthermore, no blind person shall be discriminated against in any such employment practices because such person uses a guide dog. A violation of this subsection (b) is a Class C misdemeanor. 

Unlike the Americans with Disabilities Act, the TDA does not require that employers make reasonable accommodations for disabled employees. 

The Tennessee Public Protection Act (TPPA)

Also known as the “whistleblowing statute,” the Tennessee Public Protection Act (TPPA) states that “[n]o employee shall be discharged or terminated solely for refusing to participate in, or for refusing to remain silent about illegal activities.” Under the TPPA, “ illegal activities ” means “activities that are in violation of the criminal or civil code of this state or the United States or any regulation intended to protect the public health, safety or welfare.”

The Tennessee Pregnant Workers Fairness Act (TPWFA)

One of Tennessee’s newest laws, the Tennessee Pregnant Workers Fairness Act (TPWFA) was signed into law by Governor Bill Lee with an effective date of October 1, 2020. The TPWFA requires employers to evaluate accommodation requests for employees having “medical needs arising from pregnancy, childbirth, or related medical conditions.”

Tennessee Termination Laws

Here are some Tennessee laws that you should know relating to terminations for employees exiting the organization.

Under Tennessee Code Annotated Section 50-2-103(g) , “[a]ny employee who leaves or is discharged from employment shall be paid in full all wages or salary earned by the employee no later than the next regular payday following the date of dismissal or voluntary leaving, or twenty-one (21) days following the date of discharge or voluntary leaving, whichever occurs last.” There are no exceptions to this rule.

Tennessee law does not require that employers offer severance pay to terminating employees. However, if an employer chooses to offer severance benefits, these benefits must comply with the written severance agreement between the employer and the employee or with the employer’s internal policies and procedures.

Wrongful Termination

Tennessee, like many other states, is an “ at-will ” employment state, meaning that employers can fire employees at any time, for no reason, and without advanced notice. However, this “at-will” rule is not absolute. 

An employer cannot terminate an employee based on discriminatory factors or in retaliation if, for example, an employee lodged a complaint against an employer for wrongdoing. Alternatively, if an employee entered into an employment contract with the employer, then that employee is not at will. In the case of termination, the employer must abide by the terms of the employment contract, or else the employee may have a legitimate claim against the employer.

Mass Layoff Limitations 

WARN Act Under federal law, the Worker Adjustment and Retraining Notification Act (WARN Act) “ protects workers, their families, and communities by requiring employers with 100 or more employees (generally not counting those who have worked less than six months in the last 12 months and those who work an average of fewer than 20 hours a week) to provide at least 60 calendar days advance written notice of a plant closing and mass layoff affecting 50 or more employees at a single site of employment.”

Tennessee Plan Closings and Reduction in Operations Act The Tennessee Plan Closings and Reduction in Operations Act is similar to the WARN Act, but some key differences exist. For example, Tennessee’s law applies to employers employing at least 50 to 99 employees that lay off 50 employees or more over three months.

Aside from just layoffs, this legislation encompasses:

• Any relocation of workers more than 50 miles from the employees' original workplace
• Workplace modernization resulting in the displacement of employees
• Full or partial closings
• Any other management decisions that reduce a workforce by the 50 employee or more over a three-month period

Tennessee Required Postings & Notifications

To comply with many Tennessee labor and employment laws, employers must be sure to notify employees of their rights. Let’s look at a few examples.

Under Tennessee law, employers must make the following disclosures to employees:

• An employer must inform an employee of his or her wage rate before that employee begins work at such wage rate.
• An employer must not misrepresent the wage rate , or total wages, that an employee is paid.
• An employer “shall post and maintain notices , printed or written in plain type or script, in at least two (2) conspicuous places where the notices can be seen by the employees as they go to and from work, setting forth the regular pay day.”

For simple and easier compliance, employers are encouraged to consider a labor law poster subscription service . 

Tennessee Required Labor Law Posters

Tennessee requires that employers post the following labor law posters in all places of work, in an easy and accessible location: 

• TOSHA Safety and Health Poster
• TN Unemployment Insurance Poster
• Wage Regulation/Child Labor Poster 
• Workers' Compensation Posting Notice 
• Discrimination in Employment
• Various Federal Posters
• Minimum Wage Poster

Tennessee also recommends posting the following posters for greater legal protection, though they are not required: 

• Human Trafficking Poster
• Right to Work Poster
• Drug-Free Workplace 
• Fraud Free Workplace

Tennessee Labor Law Take-Aways and Future Outlook

Understanding labor and employment laws can be an all-encompassing task. Between the federal and state overlap, employers must understand what’s mandated, what’s discretionary, and what’s expected. Additionally, court cases at both the federal and state level can alter, create, or expand upon labor and employment laws.

Guidance on legislation can come and these types of labor laws can often be issued by federal authorities like the Department of Labor (DOL) or, in some cases, the Internal Revenue Service (IRS) when they pertain to taxes or tax credits. 

Get Help With Tennessee Labor Law Compliance

Managing compliance is very hard, and the smallest mistake can lead to huge ramifications, penalties, and / or fines. That is why it is critical to get compliance right. 

For all the trouble labor laws and compliance management can give employers, modern human capital management (HCM) solutions can be of tremendous help in both speeding up and improving the accuracy of HR compliance and management in Tennessee.

To learn more about Tennessee payroll and HR solutions, contact a provider today. 

Guest Author: Lori Brown

Lori Brown is the CEO of PayNW, a leading Washington payroll and HR services company with a plethora of business experience for Tennessee payroll and HR as well. She  took the reins in September 2021 from founder Mike Anderson. Growing PayNW from $500K to $8M in annual revenue, Lori has maintained a 96% client retention rate, year over year. She is a talented leader, with extensive experience in payroll, Human Capital Management, Employee Retention Credit (ERC) efforts, and more. Lori was elected to the board of the Independent Payroll Processors Association in 2021 and is a Puget Sound Business Journal 40 Under 40 honoree. She is a mom of three and has been happily married for the past 20 years.

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If your Tennessee labor law posters have not been replaced during the second half of 2018 or thereafter notifying employees of their rights pertaining to Workers' Compensation, you're out of compliance. 

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Home >> #realtalk Blog >> Manage a team >> Travel Time Pay for …

Travel Time Pay for Hourly Employees (2024 Update)

By Homebase Team

When it comes to travel time pay for hourly employees, things can get confusing for both employers and employees. If you run a business where your workers are paid by the hour but also have to travel for work, it’s important to understand what your obligations are and what your employees are legally entitled to.

Exempt employees don’t have to worry about this issue as much because they get a fixed amount of money in every paycheck, regardless of their travel time. However, for non-exempt employees, there are rules set by the government that say employers must pay them for the time they spend traveling.

In this post, we’ll go over everything you need to know about paying your hourly employees for travel time so your business can stay compliant.

What is Travel Time Pay?

Travel time pay refers to the money that employers are required to give their employees for the time they spend traveling to and from customer locations. It doesn’t include the regular travel from home to work.

In some emergency situations or when the employer asks the employee to do work-related tasks outside of their normal hours, the time spent commuting from home may be considered as paid time.

Travel Time Pay vs Break or Meal Time Pay

It’s important to note that travel time is different from break or meal time. According to the US Department of Labor, any break less than 20 minutes or longer breaks where the employee still has work duties must be paid.

If an employee is asked by their employer to travel during a full break or lunch period, that travel time is considered work-related and should be paid.

To avoid any confusion, it’s a good idea to have a separate policy in place that explains how lunch breaks and rest periods are handled in terms of pay.

Who is Entitled to Receive Travel Time Pay?

It’s important to understand that only certain employees, known as non-exempt employees, have the right to be paid for the time they spend traveling for work. This includes both hourly and salaried employees who fall into the non-exempt category.

On the other hand, there are employees called exempt employees who are not entitled to payment for work-related travel. In the United States, the Fair Labor Standards Act (FLSA) identifies different types of exempt employees, like executives, administrative staff, professionals, computer workers, and outside salespeople.

These exempt employees don’t get paid specifically for their travel time since they receive a fixed salary regardless of their travel obligations.

When Do You Have to Pay Hourly Employees for Travel Time?

Here are three common situations regarding paid work travel, but please note that these examples may not cover all possible scenarios.

Local Travel

If an employee’s job requires them to travel within their regular work hours, they must be paid for that time. This includes situations where they are engaged in work or waiting while traveling, even if it’s outside their normal work hours. However, employees who are on breaks or have enough time to do personal things are not eligible for payment during those periods.

Local Travel Example

Let’s say Rebecca is a personal assistant who drives her client, Steve, around town to run errands. If this travel is part of her job duties and occurs during her work hours, Sandra must be paid for that time.

Special One-day Assignment to Another City

If employees have to make a one-day trip to another city for work-related activities like conferences, classes, meetings, or similar events, you must pay them for the travel time to and from that city. However, you can deduct the time they would normally spend on their regular commute.

Some businesses choose to pay for the entire commuting time, but it’s not mandatory.

Special One-day Assignment to Another City Example

Let’s say Sheila works in your office and you send her to a conference. She travels from her home to the conference location and returns on the same day. The roundtrip takes her two and a half hours, while her regular daily commute is only 30 minutes.

In this case, you can deduct the 30-minute commute and pay her for two hours of travel time.

Overnight Travel

If a non-exempt employee travels away from home and stays overnight, you must count the hours they work on regular working days as well as work hours on non-working days (like weekends or holidays). However, you are not required to pay them for travel time that falls outside their regular work hours, unless they are working during that travel time (e.g., answering work emails or doing research on a work trip).

It’s important to note that these are general guidelines, and specific rules may vary depending on the location and applicable laws. You should familiarize themselves with the regulations in their jurisdiction to ensure compliance with travel time payment requirements.

How to Calculate Work Travel Time

One of the big challenges for business owners is figuring out how to calculate travel time pay accurately. It’s important to make sure that employees’ paychecks are fair and calculated correctly.

While you usually don’t have to pay for the time employees spend commuting between their homes and the workplace, other instances of work-related travel need to be accounted for. This includes adding the travel time to employees timesheets and paying them according to the law and company policies.

How Homebase Can Help Calculate Work Travel Time

Homebase is a time tracking tool that can make tracking travel time and managing employee hours much easier. It automatically tracks employees’ hours and locations while they’re on the move.

This means you can keep track of how much time your employees spend traveling for work. Homebase’s GPS time tracking feature lets you record drive time to different job locations.

GPS Time Tracking with Homebase

To make things even simpler, you can set up GPS Geofencing with Homebase. This allows for automatic tracking of when employees start and stop working based on their physical job location. With this feature, you’ll not only know how long it took employees to get to work sites but also precisely when they arrived and left.

Homebase also has features to streamline time tracking and invoicing. You can set different pay rates for travel hours and regular work hours, helping you streamline payroll . It also helps you handle overtime pay and helps you to plan employee routes and schedules to optimize travel time.

Travel Time Pay Rate Law by State

In some states, travel time pay rates must be the same as the rates for regular working hours, or they need to meet the minimum wage requirements at least. However, in other cases, travel rates might be calculated as a percentage of the employee’s normal pay rate.

In California, any travel time that exceeds an employee’s regular daily commute is considered compensable and must be paid at the agreed regular or overtime rates. Employers can set different rates for travel time, but they cannot be lower than the minimum wage.

In New York, the minimum wage regulations cover work-related travel. Employees must be paid for travel time if it is part of their job duties.

Oregon has different classifications for work travel time: portal-to-portal travel, travel between worksites, travel on special one-day assignments, and overnight travel. Generally, travel time pay is required for all types except for portal-to-portal travel (home-to-work and work-to-home).

In New Jersey, the Wage and Hour Laws ensure fair payment for travel time. When employees are required to travel between job locations as part of their work, they must be paid at the same rate as regular working hours.

In Maryland, paid travel time is defined similarly to federal regulations. It includes travel during regular working hours, travel between job locations, and home-to-work and back travel in emergency cases.

Nevada law states that any travel time considered as work should be paid at least at minimum wage rates. Additionally, any training requested by the employer must also be paid as it is considered work time.

Remember, these are general explanations, and specific regulations may vary. It’s essential for employers and employees to familiarize themselves with the specific laws in their state to ensure compliance with travel time pay requirements.

To make sure your business is following the rules, it’s important for them to understand the specific regulations about travel time pay in their area. Likewise, employees should be aware of their rights regarding travel time pay to ensure they receive fair compensation for the time they spend traveling for work.

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Travel Time Pay FAQs

How do you pay travel time for employees.

The method of paying travel time for employees depends on various factors, including the applicable laws and company policies. Here are a few common approaches:

Paying at Regular or Overtime Rates

In many cases, travel time is paid at the same rate as regular working hours. However, if employees exceed their normal work hours or if the travel time falls under overtime criteria, it should be compensated at the appropriate overtime rate.

Different Rates for Travel Time

Some employers choose to set specific rates for travel time, separate from regular working hours. These rates may be negotiated or agreed upon before the start of job execution, but they should not be lower than the minimum wage rates

Lump Sum or Flat Rate

In certain situations, employers may opt to provide a fixed amount as a lump sum or flat rate to cover travel time. This can simplify calculations and ensure consistent payments.

Travel time pay refers to the compensation that employees receive for the time spent traveling for work-related purposes. It encompasses the hours spent traveling to and from job sites, client locations, meetings, or other work-related destinations.

While travel time pay regulations can vary by jurisdiction, it typically applies to situations where employees are required to travel beyond their regular commute. The purpose of travel time pay is to ensure that employees are fairly compensated for the time and effort spent on work-related travel.

It’s important for employers to understand the specific laws and regulations in their jurisdiction to ensure compliance with travel time pay requirements.

How Do You Pay Travel Time for Hourly Employees?

Paying travel time for hourly employees involves considering various factors, such as the specific laws in your jurisdiction and your company’s policies. Here are some common practices:

Calculate Actual Hours

One approach is to track and pay hourly employees for the actual time spent traveling. This includes the time spent commuting between job sites or client locations. Employees should be compensated at their regular hourly rate for these travel hours.

Paying at Overtime Rates

If the travel time causes hourly employees to exceed their regular working hours or if it falls under overtime criteria based on applicable laws, it should be compensated at the appropriate overtime rate.

Set Flat Rates

Some employers choose to establish fixed flat rates for travel time. This means paying a predetermined amount for each trip or assignment, regardless of the actual hours traveled.

How Do You Pay Non-Exempt Employees for Travel Time?

Paying non-exempt employees for travel time requires careful consideration of legal requirements and company policies. Here are some common practices:

Compensate Actual Travel Hours

One approach is to track and pay non-exempt employees for the actual time they spend traveling. This includes the time spent commuting between job sites, client locations, or other work-related destinations. Employees should be compensated at their regular hourly rate for these travel hours.

Apply Overtime Rates

If the travel time causes non-exempt employees to exceed their regular working hours or qualifies for overtime based on applicable laws, it should be compensated at the appropriate overtime rate.

Establish Flat Rates or Lump Sum Payments

Employers may choose to establish fixed flat rates or provide lump sum payments for travel time. This involves paying a predetermined amount for each trip or assignment, regardless of the actual hours traveled. However, it’s important to ensure that these rates comply with legal requirements, such as meeting or exceeding minimum wage rates.

Do Employers Have To Pay Hourly Employees for Travel Time?

The requirement to pay hourly employees for travel time depends on various factors, including the specific laws in your jurisdiction and the nature of the travel. Here are some general guidelines:

Regular Commute

In most cases, employers are not obligated to pay hourly employees for their regular commute from home to the workplace and vice versa. This is considered ordinary home-to-work travel and is typically not considered compensable travel time.

Work-related Travel

However, when hourly employees are required to travel for work-related purposes, such as going to client locations or job sites, the travel time may need to be compensated. If the travel time exceeds the employee’s regular commute or falls under specific criteria outlined in labor laws, employers may be required to pay hourly employees for that travel time.

It’s important to note that travel time pay regulations can vary by jurisdiction, so it is advisable to consult the labor laws in your specific location and seek legal advice to ensure compliance.

Additionally, establishing clear travel time policies and communicating them effectively to employees can help avoid confusion and promote fair compensation practices.

Remember:  This is not legal advice. If you have questions about your particular situation, please consult a lawyer, CPA, or other appropriate professional advisor or agency.

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