Employment and labor laws in Tennessee [Updated 2024]

Published

Oct 27, 2023

Employment laws are essential in ensuring workers are treated fairly and protected from harm at work. These laws act as a safety net to prevent exploitation and ensure that employees are provided with the necessary safeguards to carry out their duties effectively. 

In the US, as an employer, you must account for both federal and state laws and understand how they work in tandem. In Tennessee, employment laws match many federal guidelines, but there are also state-specific laws that govern employment and hiring practices. Tennessee is known as a business-friendly state with few stringent regulations for the employer-employee relationship. However, you must still adhere to existing Tennessee labor laws and regulations. 

As a business operating in or looking to expand to Tennessee, Rippling’s Professional Employer Organization service can help you get settled and manage tax registration and compliance when hiring and managing employees in Tennessee and other states.

Employment vs. labor law: What’s the difference?

In the United States, two different types of law are often referred to interchangeably: employment law and labor law. Even though they are closely related, they cover different areas. Labor law is related to unions and negotiations between unions and employers. On the other hand, employment law concerns the relationship between individual employees and their employers. 

Here’s more detail on what falls under each category:

  • Employment law encompasses wage and hour laws, workplace discrimination and harassment, wrongful termination and severance, employee benefits and leave policies, and unsafe work conditions.
  • Labor law governs unions, including formation, operation, collective bargaining, strikes, lockouts, elections, representation, and finances.

Wages and hours in Tennessee

The Tennessee Department of Labor and Workforce Development oversees regulating wages and hours, which includes enforcing the Tennessee Wage and Hour Act and the Tennessee Child Labor Act.

Employers must pay employees’ wages by specific dates per Tennessee labor laws. According to T.C.A. § 50-2-103, wages earned by the first of the month must be paid by the 20th of the following month. Wages earned by the 16th day of the month must be paid by the fifth day of the next month. Employers must also have regular paydays and post a notice in at least two visible places.

Minimum wage in Tennessee

Under the Fair Labor Standards Act (FLSA), most Tennessee employees are eligible for the federal minimum wage rate of $7.25 per hour, since the state doesn't have its own minimum wage law. The FLSA applies to most private employees with some exemptions.

Tennessee employers must follow federal regulations for tip credit since there are no state laws on the matter. This means they can pay their employees as little as $2.13 per hour as long as they receive enough tips to reach the federal minimum wage of $7.25 per hour.

Rippling ensures compliance with state hourly wage regulations. It alerts you of any minimum wage violations based on employee location.

Overtime pay in Tennessee

In Tennessee, overtime rules are regulated by the federal Fair Labor Standards Act, as no state-specific overtime laws exist. According to federal regulations, employees must be paid at a rate of 1.5 times their regular rate for any time worked over 40 hours in a workweek period of seven consecutive days.

Rippling’s payroll software automatically applies the correct pay rates in Tennessee when an employee’s hours trigger overtime pay requirements.

Pay transparency in Tennessee

Pay transparency is becoming more prevalent worldwide to ensure equal pay for equal work and prevent wage inequality based on gender, age, and race.

The state of Tennessee has no statewide pay transparency laws. The Tennessee General Assembly has introduced pay transparency bills, but they haven't passed.

As an employer—especially if you’re hiring in multiple states—you can use Rippling to enforce compensation bands during the hiring process and flag out-of-band adjustments. This lets you approve any exceptions and block others as needed.

Breaks and rest periods in Tennessee

Employees who work for six consecutive hours are required by state law to take an unpaid break of at least 30 minutes. If their job permits them to take a proper meal break on their own, they may not need to take this required break.

Tipped employees who primarily serve food or drinks to customers can opt out of the 30-minute unpaid meal period by submitting a waiver request that meets statutory requirements. In workplaces where there are opportunities to rest or take a rest break, this law may not apply.

Employees have the right to take unpaid breaks to express milk for their infant child. Employers must provide a private location, other than a toilet stall, for them to do so. The break time can run alongside other break times that are provided. However, employers may deny the break if it significantly disturbs business operations.

Leaves of absence in Tennessee

Paid leave isn’t required for employees in Tennessee, but they may be entitled to unpaid leave in certain circumstances. See the details below.

Vacation time

In Tennessee, employers aren’t obligated to offer vacation benefits, paid or unpaid. If such benefits are offered, they should be outlined in the employment contract.

Family and medical leave

Employers with 50+ employees must comply with the Family and Medical Leave Act (FMLA), which allows workers up to 12 weeks of unpaid leave annually for reasons such as illness, major life events like the birth or adoption of a child, or caring for a sick or injured family member.

Military leave

In Tennessee, under the federal Uniformed Services Employment and Reemployment Rights Act (USERRA), private or public employers aren’t allowed to discriminate against employees because of their military service. This means that they can’t refuse to hire, promote, or reemploy service members because of their service. Employers can’t retaliate against employees for exercising their USERRA rights. Once a service member returns from leave, they must be fully reinstated to their position. 

Per Tennessee state law, eligible public employees can receive 20 working days of paid military leave every calendar year. Following the 20 working days of paid leave, public employers can provide partial compensation to their employees while they are under competent orders, but it’s not mandatory.

Jury duty leave

In Tennessee, employers with five or more employees must pay employees for time spent on jury duty, except for temporary workers employed for less than six months.

If an employee receives a jury summons, they must show it to their employer on the next workday and will be granted an excused absence if their jury service lasts more than three hours on work days. It’s against the law for an employer to fire or discriminate against an employee for serving jury duty as long as the employee provides the necessary notice before taking time off.

Voting leave

Tennessee employers must provide up to three hours of paid time off for voting unless polls are open at least three hours before or after the employee’s regular shift. Employees must submit their request by noon on the day before voting, and employers can specify when during the workday they can take their voting leave.

Holiday leave

Private employers in Tennessee aren’t required to give their employees paid or unpaid holiday time off. Employees may have to work on holidays without extra pay unless they have worked enough hours to qualify for overtime pay under the law.

Veterans Day

Employers must provide Veterans Day leave to former or current members of the US armed forces or reserves called into active duty. However, if it would harm public health or safety or cause significant disruption, they may not be required to grant the unpaid holiday. One month's written notice is required.

Pregnancy disability leave in Tennessee

Tennessee doesn’t have a dedicated state law that provides pregnancy disability leave. 

However, there are two local laws that apply to employees who are pregnant. Per the Tennessee Pregnant Workers Fairness Act, companies with more than 14 employees must offer reasonable accommodations for medical needs related to pregnancy, childbirth, or associated medical conditions to employees or job applicants.

Companies with at least 100 full-time employees at a single location are required to follow the Tennessee Family Leave Act. This law mandates that employers provide up to four months of maternity leave for pregnancy, childbirth, adoption, and nursing, which applies to both male and female workers. To qualify for this leave, an employee must have worked full-time for an entire year. The employer may choose to offer paid or unpaid leave.

If an employee gives three months' notice and plans to return to full-time work after their leave, they should be reinstated to their previous or a similar position. Employees who can’t give notice due to a medical emergency are still entitled to reinstatement.

Paid sick leave in Tennessee

Employers in Tennessee aren’t mandated by state law to offer paid or unpaid sick leave to their employees. However, they may be obligated to give unpaid sick leave to employees based on the guidelines of the Family and Medical Leave Act.

Rippling allows you to automate and customize your vacation and sick leave policy, giving you complete visibility into how employees use leave.

Workplace safety in Tennessee

Employers are responsible for fostering a safe work environment for their employees. This includes providing necessary equipment, implementing safety plans, and establishing company-wide policies. In Tennessee, workplace safety is regulated by the Tennessee Occupational Safety and Health Administration (TOSHA). 

TOSHA enforces occupational safety and health standards for general industry, construction, and agriculture in workplaces. Employers in Tennessee must adhere to all applicable TOSHA standards and undergo inspections to ensure compliance with regulations.

Employers in Tennessee are required to have a written Safety, Health, and Injury & Illness Prevention Plan (IIPP) manual, plan, and program. However, it’s not a strict requirement under federal OSHA regulations.

Tennessee's Child Labor Act safeguards minors aged 14 to 17 who start working. This child labor law ensures that their work is safe, away from hazardous conditions, and doesn't compromise their health, well-being, school hours, or education.

Rippling PEO offers a workers' compensation plan that allows businesses in Tennessee and across the US to pay as they go, instead of paying for the whole year upfront. 

Discrimination and harassment laws in Tennessee

Laws against employment discrimination protect not only current and former employees but also job applicants.

In Tennessee workplaces, the Tennessee Human Rights Act (THRA) is the governing law for harassment, overseen by the Tennessee Human Rights Commission. Discrimination based on age, race, disability, sex, religion, color, veteran status, or national origin is prohibited. Employers can’t refuse to hire, fire, or discriminate against individuals in terms of compensation, conditions, or privileges of employment due to any of these factors.

The Tennessee CROWN Act applies to all employers and bans discrimination against employees due to their hairstyles, including braids, locs, and twists. The law also protects hairstyles that are culturally significant to the employee's ethnic group or are physical traits of the employee's ethnicity.

No statewide law protects employees from discrimination based on sexual orientation and gender identity in Tennessee. However, four cities have ordinances that vary in scope but ultimately protect local government workers from these types of discrimination.

Tennessee also falls under federal civil rights laws, including the Civil Rights Act, the Age Discrimination in Employment Act, the Americans with Disabilities Act, and the National Labor Relations Act (NLRA).

Harassment can come in various forms, verbal or physical, including offensive jokes, name-calling, physical attacks or threats, unwanted sexual advances, intimidation, objects or pictures, and anything that obstructs job performance. In Tennessee, the law permits individuals harassed by their managers or executives to directly file a complaint with the Department of Human Resources or the Equal Employment Office.

Each state has different requirements for sexual harassment training; Tennessee doesn’t mandate any training for private companies. However, it is advisable to provide education to your workforce to prevent future issues. Rippling's Learning Management System includes essential sexual harassment courses to ensure your employees comprehend federal and local regulations regarding discrimination and harassment.

Unions in Tennessee

Employees form a labor union to advocate for better working conditions, such as increased wages, more time off, and improved benefits. The National Labor Relations Act (NLRA) allows workers to:

  • Organize or become a part of a union to have the ability to negotiate with their employer
  • Negotiate collectively and choose representatives among employees to create an agreement laying out their terms and conditions
  • Discuss your employment contract, terms, and conditions with your fellow workers
  • Take action to improve working conditions, such as filing complaints with the employer or the government plus seeking union assistance
  • Strike and picket, depending on the reason
  • Abstain from becoming a member of a union

The NLRA says that unions can’t threaten employees with job loss or take negative actions against them if they don't support the union. Employers are also not allowed to stop, discourage, offer bribes, fire, demote, or scare employees who want to support a union.

Per Tennessee's right-to-work laws, employers are prohibited from retaliating against their employees based on their membership or non-membership in any labor union or organization. Additionally, employers can’t mandate participation in a labor union or compel payment of union dues as a requirement for employment.

FAQs about Tennessee labor and employment laws

Are independent contractors covered under Tennessee employment laws?

No, independent contractors aren’t covered by Tennessee employment laws. However, in 2020, Tennessee adopted a 20-factor test to determine worker classification as an employee versus independent contractor, which is taken very seriously.

Does at-will employment exist in Tennessee?

Yes, Tennessee recognizes at-will employment, which means that both the employer and employee can terminate employment at any time, for any reason, without notice or cause.

What privacy rights do employees have in Tennessee?

In 2014, Tennessee passed the Employee Online Privacy Act. This law makes it illegal for employers to ask their employees for their social media or personal email account usernames and passwords. Employers are also not allowed to make their employees add them to their personal contact lists or access their internet accounts while they are present.

There are some exceptions to this law. For example, if an employer provides or pays for an electronic communication device, account, or service, or if an employee uses a personal account for work-related purposes, the law doesn’t apply.

Are background checks legal in Tennessee?

Yes, the Tennessee Bureau of Investigation (TBI) allows the public to get a Tennessee adult criminal history on any individual. Tennessee employers must obtain written consent and follow the Fair Credit Reporting Act federal law restrictions. 

Additionally, Tennessee has a “ban-the-box” law prohibiting public employers from inquiring about criminal history in the early stages of the hiring process. 

Are whistleblowers protected in Tennessee?

Under the Tennessee Public Protection Act and Whistleblower Law, you can’t fire an employee for refusing to engage in illegal activities or for reporting such activities (T.C.A. § 50-1-304). Other state laws also protect against retaliation and whistleblowing.

Is workers’ compensation coverage required in Tennessee?

You must have workers' compensation insurance in Tennessee if you have five or more employees. However, in construction or mining, even if you only have one employee, you must have coverage to allow your employees to file a workers’ compensation claim for any job-related injury.

Are there required healthcare benefits in Tennessee?

If your Tennessee-based business has less than 50 full-time employees, you are not obligated to provide group health insurance coverage. However, if your business has 50 or more full-time employees, it falls under the Patient Protection and Affordable Care Act (PPACA) as an applicable large employer. This means that not offering health insurance benefits may result in penalties.

Are Tennessee employers required to provide bereavement leave?

Tennessee state law doesn’t require employers to provide paid or unpaid employee bereavement leave.

What employee protections are available in Tennessee if layoffs occur?

Employees laid off in Tennessee have limited benefits. The state's Department of Labor administers unemployment benefits for those who lose their jobs and aren’t at fault.

Employers in Tennessee with 50-99 employees who are reducing their workforce, laying workers off, or closing their business must file a written notice report to WARN with the Tennessee Department of Labor and Workforce Development. Tennessee's law is similar to the Federal WARN Act, but some differences exist. In Tennessee, the "Plant Closing and Reduction in Operations" Act applies to employers with a minimum of 50 but not more than 99 employees, while Federal WARN applies to employers with 100 or more full-time workers.

Disclaimer: Rippling and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any related activities or transactions.

last edited: March 26, 2024

Author

Muriel Vega

A freelance tech and B2B writer based in Atlanta, Muriel focuses her work on human resources and workplace trends and creating engaging content for SaaS companies. She has traveled the world, but her favorite place to work is Mexico City.