Tennessee Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More (2025)

Full-time public-sector (government) employees accrue annual leave based on service length:

• Less than 5 years: 12 days/year
• 5 to 10 years: 18 days/year
• 10 to 20 years: 21 days/year
• Over 20 years: 24 days/year

Excess leave is transferred to sick leave annually. Leave requests must be approved, and leave cannot be taken before it is accrued.

Private employers are not required to provide paid annual leave in Tennessee.

Public sector employees accrue 12 days of sick leave per year for:

• Personal illness/injury
• Medical appointments
• Care for family members
• Pregnancy/childbirth
• Adoption bonding
• Bereavement (up to 3 days for extended family)

Sick leave accumulates without limit and is retained if an employee returns to state service. It cannot be advanced.

Tennessee public-sector employees receive paid leave on public holidays. Holidays falling on Saturday are observed on the prior Friday, and those on Sunday are observed on the following Monday. Full-time and employees working 1,600 hours/year are eligible for holiday pay.

Recognized Holidays:

• New Year’s Day (Jan 1)
• Martin Luther King Jr. Day (Third Monday in January)
• Presidents’ Day (Third Monday in February)
• Good Friday (Friday before Easter)
• Memorial Day (Last Monday in May)
• Juneteenth (June 19)
• Independence Day (July 4)
• Labor Day (First Monday in September)
• Columbus Day (Second Monday in October)
• Veterans’ Day (Nov 11)
• Thanksgiving (Fourth Thursday in November)
• Christmas (Dec 25)

Employees on unpaid or special leave may not be eligible for holiday pay. As with most other leave types, holiday leave is not guaranteed or required for private sector employees.

Employees called to jury duty receive paid leave for the duration of their service, including travel time. If jury duty lasts less than three hours, employees must return to work or use accrued leave for the remainder of the day​.

Employers with fewer than five people on payroll are not required to provide paid jury duty leave.

Employees with 12 months of service and 1,250 hours worked are eligible for 12 weeks of unpaid leave for childbirth, adoption, caring for a family member, or personal illness. Health benefits continue during FMLA leave.

Employees in the public sector are granted three days of paid leave for the death of an immediate family member. An additional two days of sick leave may be used if needed.

Full-time public-sector employees with 12 months of service are eligible for up to four months of leave for childbirth, adoption, or nursing. The first six weeks are paid, and the remainder is unpaid. Leave can be taken continuously or intermittently within 12 months of the event.

Public sector employees may receive up to 75% of their salary while pursuing job-related education or training. This leave is intended to improve skills, meet job qualifications, or advance careers​.

Members of the National Guard or Reserves are eligible for up to 20 paid days of military leave per year for active duty or training. Additional days may be covered using sick, annual, or unpaid leave.

This leave is granted for extended illness, special work assignments, or seasonal recess. Employees must use all accrued leave before taking unpaid leave. Approval from the appointing authority is required​.

This leave is used for long-term unpaid leave due to personal or family emergencies after exhausting other leave types. Job protection is maintained, with approval needed from the appointing authority​.

Government mployees may earn comp time instead of overtime pay for extra hours worked. Accrued time can be used for personal leave.

Paid leave granted for state-required duties like assessments or interviews. Also available for blood or platelet donations. No other leave is deducted during this time​.

Tennessee does not have a state-specific minimum wage law. Therefore, the federal minimum wage of $7.25 per hour applies uniformly across the state​.

In Tennessee, certain employees may be paid less than the standard minimum wage of $7.25 per hour under federal and state guidelines. These include:

• Student Learners: Paid less during vocational training.
• Full-Time Students: Earn at least 85% of the minimum wage in retail, agriculture, or at educational institutions.
• Workers with Disabilities: May receive a subminimum wage based on specific conditions.
• Youth Employees: Under 20 can earn $4.25 per hour for their first 90 days.
• High School Students in Vocational Programs: Aged 16+ may earn 75% of the minimum wage.
• Seasonal and Recreational Workers: May qualify for subminimum wages.
• Agricultural Workers: Certain farmworkers may be exempt from minimum wage laws.

These rules allow employers to legally pay subminimum wages while adhering to federal labor standards.

Certain employees are exempt from the minimum wage and overtime provisions under the Fair Labor Standards Act (FLSA). This includes executive, administrative, and professional (EAP) employees who meet specific criteria, such as performing defined duties and being paid a fixed salary.

As of January 1, 2025:

• Exempt employees must earn at least $1,128 per week ($58,656 per year).
• Highly Compensated Employees (HCE) must earn at least $151,164 per year, including at least $1,128 per week paid on a salary or fee basis.

These changes are part of the Department of Labor’s 2024 update to salary requirements for exempt employees.

Tennessee follows the at-will employment doctrine, allowing either employer or employee to terminate the employment relationship at any time, with or without notice. Exceptions include terminations that violate public policy or anti-discrimination laws​.

Tennessee is a right-to-work state, meaning employees cannot be compelled to join a union or pay union dues as a condition of employment​.

Employers may conduct background checks and drug testing as part of their hiring process, provided they comply with federal laws like the Fair Credit Reporting Act (FCRA). Under the Tennessee Drug-Free Workplace Act, employers can benefit from maintaining a certified drug-free environment​.

State law prohibits discrimination based on race, color, religion, sex, national origin, disability, and age. Employers with eight or more employees must comply with state and federal EEO laws. Complaints can be filed with the Tennessee Human Rights Commission or EEOC​.