FLSA 29 U.S.C. § 207 • 0% Tennessee State Tax • 0% Local Wage Tax • TCA § 50-2-103

Tennessee Overtime Calculator (2026): Gross & Net Take-Home After Tax

Tennessee overtime pay is 1.5× your regular hourly rate for hours worked over 40 in a workweek under federal FLSA standards. At the $7.25 minimum wage, the overtime floor is $10.88/hour. Because Tennessee levies 0% state and local wage tax, net pay subtracts only federal income tax and FICA.

Calculate your statutory Tennessee overtime earnings at 1.5× your regular hourly wage for all hours worked over 40 in a designated 7-day workweek under the federal Fair Labor Standards Act (FLSA, 29 U.S.C. § 207) and Tennessee Code Annotated § 50-2-103. Tennessee enforces strictly weekly overtime with no daily threshold. Use our tennessee overtime calculator to compute gross earnings, federal income tax withholding, FICA payroll taxes, explicit 0% state and local wage taxes, and your estimated federal overtime tax deduction savings at annual filing.

2026 Tennessee Minimum Wage: $7.25/hr • Overtime Floor: $10.88/hr • Rates verified October 25, 2026Review calculation methodology →
1.5× Weekly OvertimeHours > 40 in a 7-day workweek (FLSA 29 U.S.C. § 207)
0% State Wage TaxTN Const. Art. II § 28; Hall Tax fully repealed Jan 1, 2021
0% Local Wage TaxLocal payroll taxes prohibited & preempted under TCA § 50-2-112
Federal Relief Only0.5× overtime premium deductible at filing (IRC § 225)
Tennessee Statutory Engine • FLSA 29 U.S.C. § 207 • 0% State Tax • 0% Local Tax

Calculate Your Tennessee Overtime & Net Take-Home Pay

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Tennessee Zero Wage Tax Advantage: Under Article II, Section 28 of the Tennessee Constitution and following the complete repeal of the Hall Tax on January 1, 2021, Tennessee levies 0% state income tax and 0% local income tax on wages. There are no state withholding forms, no county tax deductions, and no state conformity questions.
Tennessee Scenarios:
Tennessee Signature Output • Net Take-Home PayPer Weekly Paycheck
$728.91
Weekly take-home equivalent: $728.91 / week • Projected annual: $37,903.32 / yr
Regular Pay (1.0×)
$720.00
40.0 hrs @ $18.00/hr
1.5× Overtime Pay
$135.00
5.0 hrs @ $27.00/hr
Total Gross Pay
$855.00
Weekly gross earnings
Tennessee State Tax
$0.00
Tennessee levies 0% state wage tax (Hall Tax repealed 2021; TN Const. Art. II § 28)
Tennessee Local Tax
$0.00
No local/county wage tax in TN; local payroll taxes prohibited & preempted under § 50-2-112
Federal Income Tax
-$60.68
IRS 2026 tax brackets
FICA Taxes (7.65%)
-$65.41
Social Security (6.2%) + Medicare (1.45%)
Total Withholdings
-$126.09
Federal tax + FICA (0% state & local)
Federal Overtime Tax Deduction • OBBBA § 225Tax Years 2025–2028 ONLY
Estimated Tax Refund at Filing:Qualified overtime premium ($45.00/wk, $2,340.00/yr, 0.5× FLSA slice only) × 12.00% marginal federal bracket = $280.80 estimated federal tax refund at filing ($0 weekly paycheck increase)

How Federal Overtime Relief Works in Tennessee: Because Tennessee has 0% state income tax, there is no state conformity deduction. However, Tennessee workers qualify for the federal overtime tax deduction under IRC § 225 for tax years 2025 through 2028 ($0 outside that window). You deduct your qualified 0.5× overtime premium from federal taxable income, saving tax at your marginal federal rate. Deductions are capped at $12,500 for Single filers ($25,000 Joint) with phase-out above $150,000 / $300,000 MAGI. FICA (Social Security & Medicare) remains 100% due. Employer withholding continues normally during the year, so your federal tax savings lands as a refund when filing Form 1040 — never as a higher weekly paycheck.

Estimates only — not tax advice. Calculations reflect federal Fair Labor Standards Act (FLSA, 29 U.S.C. § 207), Tennessee Code Annotated (TCA § 50-2-101 et seq.), the Tennessee Constitution (Article II, Section 28), and IRS 2026 withholding tables (Rev. Proc. 2025-32). Tennessee levies 0% state individual income tax on earned wages following the full repeal of the Hall Tax on January 1, 2021. Local payroll and wage taxes are prohibited and preempted statewide under TCA § 50-2-112. Take-home pay subtracts federal income tax withholding and FICA payroll taxes (6.2% Social Security and 1.45% Medicare). Does not reflect voluntary pre-tax employer deductions.
2026 Statutory Standards

Rates verified October 25, 2026

Statutory parameters verified against federal Fair Labor Standards Act (FLSA), Tennessee Code Annotated Title 50, and Tennessee Department of Labor and Workforce Development (TDLWD).

Statutory Standard / Parameter2026 Rate / ThresholdLegal Citation / Administrative Source
State Minimum Wage (2026)$7.25 / hour (federal FLSA rate applies)TN has no state minimum wage; TCA § 50-2-112 preempts higher local minimum wages
Minimum Overtime Rate Floor$10.88 / hour ($10.875 exact floor)FLSA 29 U.S.C. § 207 (1.5× $7.25 minimum wage)
Tipped Minimum Cash Wage$2.13 / hour ($5.12 max tip credit)FLSA 29 U.S.C. § 203(m); tips must bring total to at least $7.25; cash OT floor is $5.76/hr
Youth Training Wage$4.25 / hour (under-20s, first 90 days)FLSA 29 U.S.C. § 206(g); full-time students 85% = $6.16/hr under FLSA certificate
Exempt Salary Threshold (2026)$684 / week ($35,568 / year)Federal FLSA level; 2024 rule vacated, 2019 level restored May 15, 2026. Stale figures ($844, $1,128, $455) are invalid
Highly Compensated Employee Floor$107,432 / year29 C.F.R. § 541.601; Computer professional rate: $27.63/hour (29 U.S.C. § 213(a)(17))
Overtime Multiplier1.5× regular hourly rateFLSA 29 U.S.C. § 207 (federal overtime mandate)
Overtime ThresholdAfter 40.0 hours worked per workweek7 consecutive 24-hour periods; weekly trigger only. Averaging workweeks is illegal
Daily Overtime / Double TimeNone in TennesseeNo daily overtime threshold; no double time; no Sunday or holiday premium required by law
State Income Tax Rate on Wages0.00% (No state income tax on wages)TN Const. Art. II § 28; Hall Tax fully repealed effective Jan 1, 2021 (TCA Title 67, Ch. 2)
Local / County Income Tax on Wages0.00% across all 95 Tennessee countiesLocal wage/payroll taxes prohibited by Art. II § 28; local wage laws preempted by TCA § 50-2-112
Meal & Rest Breaks (Adults)30-minute unpaid break for 6+ consecutive hoursTCA § 50-2-103(h); ample-opportunity exception applies; tipped food-service workers may waive
Meal & Rest Breaks (Minors < 18)30-minute break for 6+ consecutive hoursTCA § 50-5-115; NO waiver allowed and NO ample-opportunity exception for minors
Final Paycheck TimingLater of next regular payday OR 21 daysTCA § 50-2-103(g) (applies to quit and fired); worker must wait 21 days before filing claim
Unused Vacation / PTO PayoutGoverned strictly by written policy or agreementIf promised in policy, counts as final wages on 21-day timeline; no payout if policy silent or forfeits
Wage Enforcement AgencyTennessee Dept of Labor (TDLWD), Labor Standards844-224-5818; 220 French Landing Dr, Nashville; 20-day employer response window; no published state claim deadline
Practical Scenarios

Tennessee Worked Overtime Examples

See exactly how 1.5× overtime pay, federal withholdings, 0% state tax, 0% local tax, and federal overtime tax relief apply to real Tennessee paychecks.

Checkpoint A • Single Filer

Nashville Hospitality ($18.00 • 45h)

A single hospitality worker in Nashville working 45 hours in a single 7-day workweek during 2026.

  • Regular Pay (40h × $18.00): $720.00
  • Overtime Pay (5h × $27.00): $135.00
  • Total Weekly Gross Pay: $855.00
  • Federal Income Tax Withholding: -$60.68
  • FICA (Social Security & Medicare): -$65.41
  • Tennessee State Tax (0%): $0.00
  • Tennessee Local Tax (0%): $0.00
  • Net Take-Home Pay (Check): $728.91
  • Federal Overtime Saving (at filing): +$280.80 / yr
Checkpoint B • Single Filer

Memphis Logistics ($22.00 • 50h)

A single logistics coordinator at a Memphis freight hub working 50 hours in an e-commerce fulfillment week.

  • Regular Pay (40h × $22.00): $880.00
  • Overtime Pay (10h × $33.00): $330.00
  • Total Weekly Gross Pay: $1,210.00
  • Federal Income Tax Withholding: -$103.28
  • FICA (Social Security & Medicare): -$92.57
  • Tennessee State Tax (0%): $0.00
  • Tennessee Local Tax (0%): $0.00
  • Net Take-Home Pay (Check): $1,014.15
  • Federal Overtime Saving (at filing): +$686.40 / yr
Checkpoint C • Married Filing Jointly

Knoxville Healthcare ($25.00 • 48h • MFJ)

A married healthcare technician in Knoxville working 48 hours, filing jointly with federal standard deduction.

  • Regular Pay (40h × $25.00): $1,000.00
  • Overtime Pay (8h × $37.50): $300.00
  • Total Weekly Gross Pay: $1,300.00
  • Federal Income Tax Withholding: -$72.15
  • FICA (Social Security & Medicare): -$99.45
  • Tennessee State Tax (0%): $0.00
  • Tennessee Local Tax (0%): $0.00
  • Net Take-Home Pay (Check): $1,128.40
  • Federal Overtime Saving (at filing): +$624.00 / yr
Tennessee Labor Law • TCA Title 50 • TN Constitution

How Overtime and Wage Laws Work in Tennessee

Comprehensive statutory analysis of federal FLSA standards in Tennessee, the constitutional 0% income tax framework, break mandates, and TDLWD wage enforcement.

Constitutional Tax Framework

Why Tennessee State and Local Wage Tax is Exactly $0.00

Tennessee is one of only nine U.S. states that levies zero state personal income tax on earned wages and salaries. Understanding why your state and local tax lines show $0.00 requires looking at Tennessee's unique constitutional and statutory history:

  • The Hall Tax Never Taxed Wages: Tennessee's historic Hall Income Tax (enacted in 1931 under TCA Title 67, Chapter 2) levied a 6% tax strictly on dividend income from stocks and interest income from bonds. It never taxed salaries, wages, hourly pay, or overtime compensation.
  • Full Repeal of the Hall Tax: In 2016, the Tennessee General Assembly enacted legislation to phase out the Hall Tax entirely. As of January 1, 2021, the Hall Tax was completely repealed, eliminating the state's last remaining individual income tax.
  • Constitutional Prohibition (TN Const. Art. II, § 28): In November 2014, Tennessee voters approved a constitutional amendment adding a permanent prohibition to Article II, Section 28 of the Tennessee Constitution: "The General Assembly shall not levy, authorize, or permit any tax on payroll or earned personal income." This constitutional bar prevents the state or any local jurisdiction from enacting an earned income tax.
  • Statewide Preemption of Local Wage Mandates (TCA § 50-2-112): Under Tennessee Code Annotated § 50-2-112, local governments (including Nashville-Davidson County, Memphis-Shelby County, Knoxville-Knox County, and Chattanooga-Hamilton County) are explicitly preempted from enacting local wage mandates, local payroll taxes, or municipal minimum wages.
  • Zero State Conformity Question: Because Tennessee has no individual income tax on wages, there is no state tax conformity issue in Tennessee. Unlike states that must enact legislation to adopt or decouple from federal tax relief, Tennessee workers keep 100% of their earnings free from state and municipal wage taxation. The only overtime deduction available is the federal deduction at filing under Internal Revenue Code § 225.

1. Federal FLSA Overtime Standards in Tennessee (29 U.S.C. § 207)

Tennessee does not have a state overtime statute. Instead, all overtime compensation in the state is governed by the federal Fair Labor Standards Act (FLSA, 29 U.S.C. § 207). Under the FLSA, covered non-exempt employees must be compensated at not less than 1.5× their regular hourly rate for all hours worked past 40 in a designated 7-day workweek.

Essential rules governing Tennessee overtime include:

  • Strictly Weekly Overtime Trigger: Overtime is triggered purely on a weekly basis. An employee working a 12-hour shift on Monday and an 8-hour shift on Tuesday is owed overtime only if their cumulative hours exceed 40.0 during that workweek.
  • No Daily Overtime or Double Time: Tennessee law does not require daily overtime pay (such as after 8 hours) or double-time multipliers (2.0×). Any daily premium or double-time pay exists only if agreed upon in a private contract or union agreement.
  • No Sunday or Holiday Premium: Employers are not required by law to pay premium rates for work performed on weekends, Sundays, or holidays unless those hours push the worker's weekly total past 40.
  • Prohibition on Averaging Workweeks: Employers cannot average hours across pay periods. Working 50 hours in week one and 30 hours in week two requires 10 hours of statutory overtime pay in the first week, even though the bi-weekly total is 80 hours.
  • Mandatory Overtime is Legal: Tennessee employers can mandate overtime work for adult employees. Employers can legally fire or discipline workers who refuse scheduled overtime, provided total overtime hours are paid at 1.5×.
  • Federal Exempt Salary Threshold ($684/Week): Salaried executive, administrative, and professional employees are exempt from overtime only if paid a predetermined guaranteed salary of at least $684 per week ($35,568 per year) and they pass FLSA job duties tests. Outdated figures occasionally seen online — including $844/week, $1,128/week, or the pre-2020 $455/week — are legally invalid in 2026 because the 2024 rule was vacated by federal courts and 2019 levels were restored on May 15, 2026. The highly compensated exemption threshold is $107,432/year, and computer professionals must earn at least $27.63/hour.

2. Minimum Wage, Tipped Wages & Subminimum Rules

Tennessee has no state minimum wage law. Covered employers are subject to the federal statutory minimum wage of $7.25 per hour, which has remained unchanged since July 24, 2009. Under TCA § 50-2-112, cities and counties are legally prohibited from establishing local minimum wages above $7.25.

For tipped employees (such as restaurant servers, bartenders, and bussers):

  • Direct Cash Wage: Employers may pay a direct cash wage of $2.13 per hour, claiming a maximum tip credit of $5.12 per hour under FLSA § 203(m).
  • Employer Make-Up Obligation: If an employee's direct cash wage plus tips does not equal at least $7.25 per hour across the workweek, the employer must pay the difference.
  • Overtime on the FULL Minimum Wage: When a tipped worker works overtime, overtime is calculated on the FULL $7.25 rate, not the $2.13 cash wage:
    • Overtime Rate Floor: $7.25 × 1.5 = $10.88 per hour ($10.875 rounded)
    • Less Maximum Tip Credit: -$5.12 per hour
    • Mandatory Direct Employer Cash per OT Hour: $5.76 per hour ($10.88 − $5.12)
  • Subminimum Youth & Student Wages: Under-20s may be paid a training wage of $4.25 per hour during their first 90 consecutive calendar days of employment. Full-time students employed in retail or service establishments may be paid 85% of minimum wage ($6.16 per hour) under special U.S. DOL certificates.

3. Final Paycheck Laws in Tennessee (TCA § 50-2-103(g))

Tennessee's final wage payment statute (TCA § 50-2-103(g)) contains a specific timeline that applies equally whether an employee was discharged, fired, laid off, or voluntarily resigned:

  • The 21-Day Rule: The employer must issue the final paycheck no later than the LATER of the next regular scheduled payday OR 21 days from the date of separation.
  • Mandatory 21-Day Waiting Period: Under Tennessee law, a separated worker must wait 21 days following separation before filing a formal wage claim with the Tennessee Department of Labor and Workforce Development (TDLWD). Wage claims submitted before 21 days have elapsed will not be processed.
  • Vacation / PTO Payout: Tennessee statute does not require employers to provide paid vacation or PTO. Payout upon separation is governed strictly by the employer's published written employment policy or union agreement. If the policy promises payout of accrued unused vacation, it counts as final wages due on the 21-day timeline. If the policy is silent or explicitly states that unused PTO is forfeited, Tennessee law provides no default right to payment.

4. Adult and Minor Meal Break Mandates

Tennessee is one of the few southern states with a statutory meal break requirement:

  • Adult Employees (TCA § 50-2-103(h)): Employees scheduled to work 6 or more consecutive hours must be provided with a 30-minute unpaid meal or rest break. The break cannot be scheduled during or before the first hour of work.
  • Ample-Opportunity Exception: The adult break mandate does not apply in workplace settings where the nature of the business gives employees ample opportunity to rest or take breaks throughout the day.
  • Tipped Food-Service Waiver: Tipped employees in food-service establishments may waive the 30-minute break in writing, with the statutory right to rescind that waiver within 7 days.
  • Minors Under 18 (TCA § 50-5-115): Minors working 6+ consecutive hours must receive a 30-minute uninterrupted meal or rest break. Minors cannot waive this break, and the ample-opportunity exception does NOT apply to minors.
  • Short Breaks (15 Minutes): While Tennessee law does not mandate short rest breaks, federal regulations (29 C.F.R. § 785.18) require that any rest pauses of 20 minutes or less granted by the employer must be paid working time.

5. Child Labor & Minors' Permissible Working Hours

Tennessee's Child Labor Act (TCA Title 50, Chapter 5) sets strict limits on youth employment:

  • 14- and 15-Year-Olds: May work no more than 3 hours on a school day, 18 hours in a school week, 8 hours on a non-school day, and 40 hours in a non-school week. Hours are restricted to between 7:00 AM and 7:00 PM (extended to 9:00 PM from June 1 through Labor Day).
  • 16- and 17-Year-Olds: Cannot work between 10:00 PM and 6:00 AM before school days. However, with written parental consent on file, 16- and 17-year-olds may work until midnight up to 3 school nights per week. (Note: Tennessee statutes do not specify a weekly hour cap for 16- and 17-year-olds, and sources conflict — employers must adhere to school attendance rules).

6. Regular Rate Math for Bonuses and Commissions

When non-exempt workers receive non-discretionary bonuses (such as attendance, safety, or production bonuses), shift differentials, or commissions, federal wage rules require that these payments be rolled into the employee's regular rate before calculating overtime:

Bonus Overtime Formula:

Regular Rate = Total Straight-Time Remuneration ÷ Total Hours Worked

Page Calculation Assumption: This formula assumes the straight-time hourly rate is already paid for all 43 hours ($430.00 base + $50.00 bonus = $480.00 straight-time pay). Dividing $480.00 by 43 hours yields a true regular rate of $11.16/hour. The half-time (0.5×) overtime premium owed is 3 OT hours × ($11.16 × 0.5) = $16.74, bringing total gross earnings to $496.74.

7. Compensatory Time & Sector-Specific Rules

Specific industry exceptions in Tennessee include:

  • Compensatory Time ('Comp Time'): Offering comp time in lieu of cash overtime is strictly illegal in Tennessee private-sector employment. Only public government agencies may provide comp time under FLSA § 207(o) at 1.5 hours per overtime hour worked, capped at 240 hours (480 hours for public safety and seasonal staff).
  • Firefighters & Police (207(k)): Under 29 U.S.C. § 207(k), public fire departments can establish work periods of up to 28 days triggering overtime after 212 hours (or 53 hours in 7 days). Police departments trigger overtime after 171 hours in 28 days (or 43 hours in 7 days).
  • Healthcare 8-and-80 System: Under 29 U.S.C. § 207(j), hospitals and care facilities may adopt an 8-and-80 elective overtime agreement (overtime after 8 hours in a workday OR after 80 hours in a 14-day pay period, whichever is greater). This is a federal elective option, NOT a Tennessee state mandate.
  • No Nurse Mandatory Overtime Caps: Unlike states with nurse overtime caps, Tennessee law does not prohibit mandatory overtime for registered nurses or healthcare staff.
  • Agricultural Exemption: Agricultural workers are exempt from statutory overtime under FLSA § 13(b)(12) and are therefore ineligible for the federal overtime deduction under IRC § 225.

8. Filing a Wage Complaint with TDLWD & Legal Deadlines

If an employer fails to pay required overtime or final wages, workers in Tennessee can seek administrative recovery or file a federal lawsuit:

  • Agency: Tennessee Department of Labor and Workforce Development (TDLWD), Labor Standards Unit
  • Address: 220 French Landing Drive, Nashville, TN 37243 • Phone: 844-224-5818
  • Process: Workers submit an online wage inquiry leading to an official Statement of Wage Claim. TDLWD notifies the employer, who has 20 calendar days to respond.
  • State Filing Deadline Note: TDLWD does NOT publish a formal state-claim statute of limitations — do not rely on unverified claims of a '1-year' deadline. However, workers should submit wage claims promptly after the 21-day waiting period has elapsed.
  • Federal FLSA Court Deadlines: Lawsuits under the federal FLSA must be filed within 2 years from the date the overtime violation occurred, extended to 3 years for willful violations (29 U.S.C. § 255).

9. Tennessee City Anchors & Statewide Statutory Uniformity

Whether you work in Nashville, Memphis, Knoxville, Chattanooga, Clarksville, Murfreesboro, or rural Tennessee, all municipal jurisdictions resolve to the exact same statewide statutory figures:

  • Nashville (Davidson County): Subject to standard 1.5× FLSA weekly overtime after 40 hours, federal $7.25 minimum wage, $10.88 overtime floor, 0% state wage tax, and 0% local income tax.
  • Memphis (Shelby County): Logistics and distribution employees follow standard FLSA 40-hour weekly rules; local payroll or wage taxes are barred.
  • Knoxville (Knox County): Healthcare, research, and manufacturing workers follow standard weekly overtime; hospital workers may elect 8-and-80 federal schedules by agreement.
  • Chattanooga (Hamilton County): Manufacturing and trades follow the 40-hour weekly trigger with no daily overtime or local wage mandates.
  • Statutory Preemption (TCA § 50-2-112): Tennessee state law strictly preempts local municipalities from creating local minimum wage ordinances or separate city overtime rules. Searchers should never rely on invented city-specific wage rates.
Official Statutory Citations • Tennessee:
• Federal Overtime Mandate: Fair Labor Standards Act, 29 U.S.C. § 207
• Constitutional Wage Tax Prohibition: Tennessee Constitution, Article II, Section 28
• Local Wage Preemption: Tennessee Code Annotated § 50-2-112
• Final Paycheck & 21-Day Rule: Tennessee Code Annotated § 50-2-103(g)
• Meal & Rest Breaks (Adults): Tennessee Code Annotated § 50-2-103(h)
• Meal Breaks for Minors: Tennessee Code Annotated § 50-5-115

How is overtime calculated in Tennessee?

Because Tennessee has no state-specific overtime or minimum wage statute, overtime is governed by the federal Fair Labor Standards Act (FLSA, 29 U.S.C. § 207). Non-exempt employees are entitled to overtime pay at 1.5 times their regular hourly rate for all hours worked in excess of 40 in a designated 7-day workweek. What distinguishes Tennessee payroll is net take-home pay: Tennessee levies exactly 0% state income tax on earned wages under Article II, Section 28 of the Tennessee Constitution (the Hall Tax was repealed in 2021 and never applied to wages), and local wage taxes are prohibited by TCA § 50-2-112. As a result, there is zero state conformity issue, and only federal deductions apply to your paycheck: 7.65% FICA (6.2% Social Security + 1.45% Medicare) and federal income tax withholding. Workers can also claim the federal §225 deduction—which is BELOW-the-line, claimed on Schedule 1-A, reducing taxable income NOT AGI—at annual tax filing for the 0.5× overtime premium slice. Our Tennessee overtime calculator computes your exact take-home pay with 0% state tax.

How do I calculate time and a half in Tennessee?

To calculate time and a half in Tennessee, multiply your regular hourly rate by 1.5. For example, if your standard rate is $20.00 per hour, your overtime rate is $30.00 per hour ($20.00 × 1.5). If you work 45 hours in a workweek, your gross earnings equal 40 regular hours at $20.00 ($800.00) plus 5 overtime hours at $30.00 ($150.00), giving $950.00 in gross pay. The financial benefit for Tennessee workers shows up in net take-home pay: with 0% state income tax and 0% local income tax deducted from your wages, your only payroll withholdings are federal income tax and statutory FICA ($72.68 for Social Security and Medicare at 7.65%). Non-discretionary bonuses and commissions must be included in your regular rate before calculating the 1.5× rate. Our calculator above displays your exact net take-home pay for any hourly rate in Tennessee.

Does Tennessee have its own overtime law, or does it follow federal FLSA only?

Tennessee does not have its own state overtime law; it relies entirely on the federal Fair Labor Standards Act (FLSA, 29 U.S.C. § 207) enforced by the U.S. Department of Labor Wage and Hour Division. Under the FLSA, covered non-exempt employees must receive 1.5× their regular rate for hours worked beyond 40 in a 7-day workweek. In addition, under Tennessee Code Annotated § 50-2-112, the state preempts all local governments (such as Nashville, Memphis, Knoxville, and Chattanooga) from creating local minimum wage rates or local overtime rules. Because Tennessee maintains a constitutional 0% state income tax on earned wages, there is no state tax conformity legislation needed. Tennessee workers keep more of their overtime earnings in net take-home pay compared to workers in states with state or city income taxes.

Does Tennessee require daily overtime or double time?

No. Tennessee law does not require daily overtime pay or double time (2.0×). Overtime under the FLSA is strictly a weekly calculation: working a 10-hour or 12-hour shift on a single workday does not trigger overtime pay if total hours for the 7-day workweek do not exceed 40. Tennessee also has no statutory 7th-consecutive-day premium or holiday pay requirement. Double time exists only if an employer agrees to it in a private employment contract or union collective bargaining agreement. Because Tennessee imposes 0% state income tax, every overtime dollar earned past 40 weekly hours flows directly into your net take-home pay, subject only to federal income tax and 7.65% FICA withholding.

What is Tennessee's minimum wage overtime rate?

Tennessee has no state minimum wage statute, adopting by default the federal minimum wage of $7.25 per hour, with local minimum wages preempted under TCA § 50-2-112. The minimum wage overtime rate in Tennessee is $10.88 per hour, which is 1.5 times the $7.25 regular minimum wage ($7.25 × 1.5 = $10.875, rounded to $10.88). If a minimum-wage worker works 45 hours in a week, gross pay is $344.40 (40 hours at $7.25 = $290.00, plus 5 overtime hours at $10.88 = $54.40). Because Tennessee deducts $0.00 for state and local income taxes, net take-home pay is reduced only by 7.65% FICA ($26.35) and any applicable federal income tax withholding, giving Tennessee low-wage workers higher net take-home pay than identical workers in states with state income tax withholdings.

How is overtime calculated for salaried employees in Tennessee?

Salaried workers in Tennessee are legally entitled to 1.5× overtime pay for hours over 40 in a workweek unless they satisfy both the federal salary-basis test and specific executive, administrative, or professional duties tests under 29 C.F.R. Part 541. To qualify as exempt, an employee must receive a guaranteed salary of at least $684 per week ($35,568 annually); outdated numbers like $844/week or $1,128/week are legally invalid in 2026 following federal court rulings vacating the 2024 rule. For salaried non-exempt employees, the regular hourly rate is determined by dividing weekly salary by the 40 regular hours it covers, and each overtime hour is paid at 1.5 times that calculated rate. In Tennessee, their net take-home pay is significantly enhanced because the state levies 0% state income tax, meaning only federal income tax and 7.65% FICA are deducted from their salary and overtime pay.

How is overtime calculated for tipped employees in Tennessee?

In Tennessee, employers may pay tipped employees a direct cash wage of $2.13 per hour and claim a tip credit of $5.12 per hour against the federal $7.25 minimum wage under FLSA § 203(m). However, when a tipped employee works overtime, overtime MUST be calculated on the FULL $7.25 minimum wage, never on the $2.13 cash wage. The full overtime rate floor is $10.88 per hour ($7.25 × 1.5 = $10.875, rounded to $10.88). Subtracting the maximum tip credit of $5.12 leaves a mandatory direct employer cash obligation of $5.76 per overtime hour ($10.88 − $5.12 = $5.76). On paychecks, cash wages and reported tips are pooled for payroll taxes: with 0% Tennessee state income tax, only 7.65% FICA and federal income tax are withheld, maximizing the employee's net take-home earnings. Employers must make up any shortfall if direct cash pay plus tips fails to average at least $7.25 per regular hour and $10.88 per overtime hour.

Frequently Asked Questions

Tennessee Overtime & Labor Law FAQs

Direct, statutory answers to the most common questions on Tennessee overtime pay, 0% state tax, breaks, and final paycheck deadlines.

how does overtime work in tennessee

Because Tennessee has no state-level overtime or minimum wage statute, overtime is governed by the federal Fair Labor Standards Act (FLSA, 29 U.S.C. § 207). Covered non-exempt employees earn overtime pay at not less than 1.5× their regular hourly rate for all hours worked beyond 40 in a designated 7-day workweek. Tennessee enforces strictly weekly overtime — working 10 or 12 hours in a single day does not trigger overtime pay unless your weekly total exceeds 40 hours. For example, at an $18.00/hour regular rate, working 45 hours yields 40 regular hours ($720.00) plus 5 overtime hours at $27.00/hour ($135.00), resulting in $855.00 in weekly gross pay.

how does overtime pay work in tennessee

Overtime pay in Tennessee works by multiplying an employee's regular hourly rate by 1.5 for each hour worked in excess of 40 during a fixed, recurring 7-day workweek. Under federal wage rules enforced by the U.S. Department of Labor, employers cannot average hours over a two-week pay period (e.g., working 50 hours in week one and 30 hours in week two still requires 10 hours of overtime pay in week one). In addition, non-discretionary bonuses, commissions, and shift differentials must be included in your regular rate before calculating the 1.5× overtime multiplier.

what is overtime pay in tennessee

In Tennessee, overtime pay is statutory premium compensation owed to non-exempt hourly and salaried workers for hours worked past 40 in a workweek. At the federal $7.25 per hour minimum wage, the legal overtime rate floor is $10.88 per hour ($7.25 × 1.5 = $10.875, rounded to $10.88). Tennessee law does not require extra pay for work on weekends, Sundays, or holidays unless those hours push your weekly total past 40, or unless an employment contract or written company policy explicitly provides for premium holiday pay.

how much is overtime pay in tn

Overtime pay in Tennessee is always at least one and one-half times (1.5×) your regular hourly wage. At $15.00/hour, your overtime rate is $22.50/hour; at $20.00/hour, your overtime rate is $30.00/hour; and at $25.00/hour, your overtime rate is $37.50/hour. If you earn tipped wages at the $2.13 cash minimum wage, overtime must still be computed on the full $7.25 statutory rate ($10.88/hour), meaning your employer must pay you at least $5.76 in direct cash for each overtime hour worked.

tennessee overtime laws for hourly employees

Tennessee overtime laws for hourly employees follow the federal FLSA. Hourly non-exempt employees must be paid 1.5× their regular rate for all hours over 40 in a 7-day workweek. Mandatory overtime is legal in Tennessee — employers can require adult employees to work overtime hours and may discipline or discharge workers who refuse, provided all overtime wages are paid in full. Private employers in Tennessee are legally prohibited from offering compensatory time off ('comp time') instead of cash overtime pay.

tennessee overtime laws for salaried employees

Salaried employees in Tennessee are entitled to 1.5× overtime pay unless they meet both the federal salary basis test and specific executive, administrative, or professional job duties tests under 29 C.F.R. Part 541. To qualify for an overtime exemption, an employee must receive a guaranteed, predetermined salary of at least $684 per week ($35,568 per year). Stale figures occasionally cited online — including $844/week, $1,128/week, or the pre-2020 $455/week — are legally invalid in 2026 because the 2024 DOL salary rule was vacated by federal courts, restoring the 2019 threshold on May 15, 2026. Salaried employees earning less than $684/week, or whose actual daily duties lack managerial or specialized professional discretion, remain fully non-exempt and owed 1.5× overtime for hours over 40.

tennessee overtime laws 2025

In 2025 and 2026, Tennessee overtime laws maintain the federal 40-hour weekly threshold at 1.5× pay with a $7.25/hour minimum wage ($10.88/hour overtime floor). On the tax side, Tennessee levies 0% state income tax on earned wages, and local wage taxes are prohibited by Article II, Section 28 of the Tennessee Constitution. For tax years 2025 through 2028, Tennessee workers are eligible for the federal overtime tax deduction under IRC § 225 (OBBBA), which allows deduction of the qualified 0.5× overtime premium at annual tax filing, capped at $12,500 Single / $25,000 Joint.

tennessee labor laws breaks

Under Tennessee Code Annotated § 50-2-103(h), adult employees scheduled to work 6 or more consecutive hours must be provided with a 30-minute unpaid meal or rest break. This break cannot be scheduled during or before the first hour of scheduled work. However, Tennessee law contains an 'ample opportunity' exception: the break mandate does not apply to workplace environments where the nature of the business gives employees ample opportunity to rest or take breaks throughout the workday. In addition, tipped food-service employees may waive their 30-minute meal break in writing, with the statutory right to rescind the waiver within 7 days.

tennessee labor laws 15 minute breaks

Tennessee state law does not require employers to provide short 10-minute or 15-minute rest breaks. However, under federal wage regulations (29 C.F.R. § 785.18), if an employer chooses to offer short rest breaks lasting 20 minutes or less, that time must be counted and paid as compensable working hours. Employers cannot deduct 15-minute rest pauses from an employee's hours worked or regular paycheck.

tennessee labor laws for minors

Under Tennessee's Child Labor Act (TCA § 50-5-115), minors under 18 years of age working 6 or more consecutive hours MUST receive a 30-minute uninterrupted meal or rest break. Unlike the adult break law, minors cannot waive their break, and the ample-opportunity exception does not apply to minors. For working hours, 14- and 15-year-olds may work no more than 3 hours on a school day and 18 hours during a school week between 7:00 AM and 7:00 PM (extended to 9:00 PM during summer). Minors aged 16 and 17 cannot work between 10:00 PM and 6:00 AM before a school day, but may work until midnight up to 3 school nights per week with written parental consent.