While we take all precautions to ensure that the data on this site is correct and up-to-date, we cannot be held liable for the accuracy of the labor law data we present. The Tennessee Minimum Wage Act or Senate Bill 1788, authored by Sen. Sara Kyle, seeks to increase the states minimum hourly rate from $7.25 to $15. You may be paid under the Tennessee minimum wage if you fit into one of the following categories: The current Tennessee minimum wage of $7.25 per hour is the lowest amount a non-exempt employee in Tennessee can legally be paid for hourly work. On Jan. 1, 2022, the state's minimum wage would increase to $9.25, to $10 in 2023, to $11 in 2024, and to $12 in 2025. Jason Coles is the Founder of Foreign USA and its Chief Content Writer and Editor. There are no current plans to implement a state minimum wage in Tennessee, but theres been some conversation about it. If these employees do not make the minimum wage pay rate in tips, then it is the full responsibility of the employer to make up the difference, ensuring that the employee is being paid the full minimum wage rate for Tennessee. Use the free Tennessee job search utility to find local job openings hiring now. However, one cannot deny that it can also potentially lead to a rise in unemployment or full-time employees suddenly becoming temporary employees. An official website of the United States government. It will affect your business operations and your employees. If the bill passes, this would end up costing the state government, as the state has more than 1,300 employees that would have their wage increased. The data are solicited from the state's contractors annually in highway construction. 1 These earnings estimates do not account for the Tennessee income tax , federal income tax, or local/municipal income taxes. TN Department of Labor and Workforce Development, 10 Reasons Why California is Called the Golden State. These ever-changing laws, effective dates, and methodologies result in minimum wages that may change at different times or differ dramatically within a state or region. Federal minimum wage law supersedes state minimum wage laws where the federal minimum wage is greater than the state minimum wage. There are 16 states plus Puerto Rico that has a minimum wage requirement that is the same as the federal minimum wage requirement. The table below lists the current prevailing 2023 minimum wage rates for every state in the United States. This is the same as the current Federal Minimum Wage rate. p.usa-alert__text {margin-bottom:0!important;} If you have a claim related to employment, you can find out more information on the Tennessee Department of Labor and Workforce Development website. Employers may also pay employees more if they make multiple payments. They must also let them know about the tip credit, and explain any tip pooling systems at the workplace. This is certainly the story with tipped workers in Tennessee.