In 2019, the U.S. House of Representatives passed legislation to raise the federal minimum wage to $15 an hour by October 2025. For non-tipped employees it is $7.25 per hour. The Claim. View Sitemap. 1Like the federal wage and hour law, State law often exempts particular occupations or industries from the minimum labor standard generally applied to covered employment. This material may not be published, broadcast, rewritten, or redistributed. In those states where the state minimum wage is greater than the federal minimum wage, the state minimum wage prevails. One of these ways, and perhaps the most significant method is through tip credits. The FLSA guarantees all TN employees adequate overtime compensation for all qualifying overtime hours worked. Once the 90-day period is over, you will be eligible to be paid the 2023 Florida minimum wage of $11.00 per hour or potentially even more. Tennessee continues to be one of the remaining five states that still follow the federal minimum wage rules. The Tennessee Minimum Wage Act or Senate Bill 1788, authored by Sen. Sara Kyle, seeks to increase the state's minimum hourly rate from $7.25 to $15. Tennessee Minimum Wage 2022 Minimum Wage Minimum Wage 2022 Hourly Minimum Wage $7.25 / hour Weekly Minimum Wage1 $290.00 / 40-hr week Yearly Minimum Wage2 $15,080.00 / year Tennessee's state minimum wage rate is $7.25 per hour . What is the Minimum Wage for Servers in South Carolina? The Tennessee state minimum wage in 2023 is the same as it has been since 2009, $7.25 per hour. This site is a free public service not affiliated with the Department of Labor or any governmental organization. The new law increases the minimum wage to $15 per hour by Jan. 1, 2022, for employers with 26 or more employees. Its always hard to have a drastic minimum wage increase for businesses. The new law will make it a requirement for employers to pay at least $7.25 an hour, with certain exemptions for students, the elderly, and those with disabilities. Another state that hasnt increased its minimum wage since 2009 is South Carolina. People's Opinions on Minimum Wage in Tennessee, Detailed skills and competency reports for specific positions. Tennessee has no separate wage and hour laws, so any claim brought to require an employer to pay minimum wage or overtime must be filed under FLSA, and our employment lawyer can help. Therefore, Tennessee's overtime minimum wage is $10.88 per hour, one and a half times the regular Tennessee minimum wage of $7.25 per hour. It will affect your business operations and your employees. . Most of these increases occur around January 1st. The Wage and Hour Division tries to ensure that the information on this page is accurate but individuals should consult the relevant state labor office for official information. .manual-search ul.usa-list li {max-width:100%;} Beginning July 1, 2022, Tennessee requires employers subject to the Fair Labor Standards Act (FLSA) to pay employees with disabilities no less than the minimum wage established by the FLSA. Based on local legislation, many states have already enacted minimum wage increases or approved increases due for implementation at a future date. An example of data being processed may be a unique identifier stored in a cookie. Recognized as a prolific business plan writer by many prominent immigration attorneys in the U.S., Jason has written over 1,200 business plans over the past 16+ years for start-ups looking to establish and expand their footprint in the United States. For all other occupations, the wage offered and paid must equal or exceed the hourly AEWR, the prevailing wage rate (if available), the Federal minimum wage, the State minimum wage, or the agreed-upon collective bargaining rate, whichever is highest. Copyright 2022 Scripps Media, Inc. All rights reserved. Usage is subject to our Terms and Privacy Policy. There are still no updates on when this will be passed and taken into effect. The state is expected to increase the minimum wage to at least $14 per hour by 2021. However, one cannot deny that it can also potentially lead to a rise in unemployment or full-time employees suddenly becoming temporary employees. This information is critical in adapting to changing times and ensuring your companys success. Currently, the national direct hourly salary is only $2.13 per hour. State Minimum Wages | According to a report by the U.S. Bureau of Labor Statistics, the state of Tennessee has the highest percentage of workers that earn a minimum wage in the country, with 4% of hourly workers earning the set rate ($7.25) or lower. There are no plans to increase the federal minimum wage, something that would have to be approved by Congress. Tennessee also doesnt have an overtime law, so federal overtime rules apply.