Key Takeaways
• Tennessee’s minimum wage is $7.25 per hour, matching the federal minimum wage in 2025.
• Tipped workers can earn a $4.25 base wage, totaling at least $7.25 per hour with tips.
• The exempt salary threshold remains $684 weekly after a planned increase was blocked in 2024.
If you’re living or working in Tennessee and want to know exactly how the minimum wage works in 2025, you’re not alone. Many workers, employers, and newcomers to the United States 🇺🇸 have questions about pay rules, especially since wage laws can be confusing and change over time. This guide will walk you through everything you need to know about the Minimum wage in Tennessee, how it compares to the federal minimum wage, and what steps you should take to make sure you’re following the law—whether you’re an employee or an employer.
Let’s break down the process step by step, so you can understand your rights, responsibilities, and what to watch out for in 2025.
Step 1: Understand the Purpose and Basics of Minimum Wage in Tennessee
Before you look at the details, it’s important to know what the minimum wage is and why it matters.
Minimum wage is the lowest amount an employer can legally pay most workers for each hour of work. In the United States 🇺🇸, there’s a federal minimum wage set by the government, but states can choose to set their own higher rates. Some cities can even set their own local minimum wage, but this isn’t the case in Tennessee.
In 2025, the minimum wage in Tennessee is $7.25 per hour. This is the same as the federal minimum wage and has not changed since 2009.
Key Points:
– Standard minimum wage in Tennessee: $7.25 per hour
– Federal minimum wage: $7.25 per hour
– No state or local increases: Tennessee has not passed any laws to raise the minimum wage above the federal level, and no cities or counties in Tennessee have set a higher local minimum wage.
Time estimate: 5 minutes to review the basics
Step 2: Identify Which Workers Are Covered by the Minimum Wage
Not every worker is paid the same way. Some jobs have special rules, and some workers are exempt from minimum wage laws. Here’s how it works in Tennessee:
2.1 Standard Employees
- Most workers in Tennessee must be paid at least $7.25 per hour.
- This includes full-time, part-time, and temporary workers unless they fall under a special exemption.
2.2 Tipped Employees
- Tipped employees (like servers and bartenders) can be paid a lower base wage of $4.25 per hour.
- However, their total pay (base wage plus tips) must add up to at least $7.25 per hour.
- If tips plus the base wage do not reach $7.25 per hour, the employer must make up the difference.
2.3 Youth and Training Wages
- Workers under 20 years old can be paid a training wage of $4.25 per hour for their first 90 calendar days of work.
- After 90 days, they must be paid the standard minimum wage.
2.4 Exemptions
Some workers are not covered by minimum wage laws or can be paid less under certain conditions. These include:
– Full-time students in certain jobs
– Apprentices
– Workers with disabilities (under specific federal programs)
Time estimate: 10 minutes to check which category applies to you or your employees
Step 3: Calculate Wages for Different Types of Employees
Knowing the minimum wage is only the first step. You need to know how to calculate pay for different situations.
3.1 For Standard Employees
- Multiply the number of hours worked by $7.25.
- Example: If you work 40 hours a week, your gross pay should be 40 x $7.25 = $290 per week.
3.2 For Tipped Employees
- Multiply hours worked by $4.25 (base wage).
- Add total tips received for the week.
- If the sum is less than $7.25 per hour, the employer must pay the difference.
Example:
– 30 hours worked at $4.25 = $127.50 base wage
– $100 in tips for the week
– Total: $227.50
– Minimum required: 30 x $7.25 = $217.50
– In this case, the employee’s total pay meets the minimum wage requirement.
3.3 For Youth and Training Wages
- For the first 90 days, pay can be $4.25 per hour.
- After 90 days, pay must increase to at least $7.25 per hour.
Time estimate: 10 minutes to calculate weekly pay
Step 4: Check for State and Local Variations
Unlike some other states, Tennessee does not have its own minimum wage law. This means:
- Tennessee follows the federal minimum wage.
- No cities or counties in Tennessee have set a higher local minimum wage.
- Even in large cities like Nashville, the minimum wage is still $7.25 per hour.
Important: Some employers, like the University of Memphis, have chosen to pay higher wages (for example, $15 per hour), but this is not required by law and only applies to those specific workplaces.
Time estimate: 5 minutes to confirm local rules
Step 5: Understand Exempt Employee Salary Thresholds
Some employees are “exempt” from minimum wage and overtime rules, usually because they are paid a salary and have certain job duties.
5.1 What Is the Salary Threshold?
- The salary threshold is the minimum amount an exempt employee must be paid each week to be considered exempt from overtime and minimum wage rules.
- In 2025, there was a plan to raise this threshold to $1,128 per week ($58,656 per year).
- However, a federal court blocked this increase as of November 15, 2024.
- The current threshold remains at $684 per week ($35,568 per year).
5.2 What Does This Mean?
- If you are a salaried employee and your weekly pay is less than $684, you may not be exempt and could be owed overtime pay.
- Employers should check the latest rules from the U.S. Department of Labor for updates.
Time estimate: 10 minutes to review salary arrangements
Step 6: Know the Common Pitfalls and How to Avoid Them
Many people make mistakes when it comes to minimum wage laws. Here are some common problems and how to avoid them:
6.1 For Employees
- Not tracking hours: Always keep a record of your hours worked, especially if you’re paid hourly or receive tips.
- Not checking pay stubs: Make sure your pay matches the hours you worked and that tips are included if you’re a tipped employee.
- Assuming all jobs pay minimum wage: Some jobs are exempt, so check if your job is covered.
6.2 For Employers
- Not making up the difference for tipped employees: If tips plus base wage don’t reach $7.25 per hour, you must pay the difference.
- Misclassifying employees: Don’t call someone “exempt” or “salaried” unless they meet the legal requirements.
- Ignoring youth wage rules: Remember the 90-day limit for paying the training wage to workers under 20.
Time estimate: 15 minutes to review payroll and records
Step 7: Troubleshooting Wage Issues
If you think you’re not being paid correctly, or if you’re an employer unsure about the rules, here’s what you can do:
7.1 For Employees
- Talk to your employer: Sometimes mistakes are simple errors.
- Keep records: Write down your hours, pay, and any tips received.
- Contact the U.S. Department of Labor: You can file a complaint if you believe you’re not being paid the minimum wage. Visit the U.S. Department of Labor Wage and Hour Division for more information and to file a complaint.
7.2 For Employers
- Review payroll systems: Make sure your payroll software or service is set up to follow the minimum wage rules.
- Train managers: Make sure anyone who handles pay understands the rules for tipped workers, youth wages, and exemptions.
- Stay updated: Laws can change, so check official sources regularly.
Time estimate: 20 minutes to resolve most issues
Step 8: Checklist Summary for Minimum Wage Compliance in Tennessee (2025)
Use this checklist to make sure you’re following all the rules:
For Employees:
– [ ] Am I being paid at least $7.25 per hour (or $4.25 plus tips if I’m a tipped employee)?
– [ ] If I’m under 20, am I paid at least $4.25 per hour for the first 90 days, then $7.25 after?
– [ ] Do my total tips and base wage add up to at least $7.25 per hour?
– [ ] Am I keeping records of my hours and pay?
– [ ] If I’m a salaried worker, is my weekly pay at least $684?
For Employers:
– [ ] Are all non-tipped employees paid at least $7.25 per hour?
– [ ] Are tipped employees’ total earnings at least $7.25 per hour?
– [ ] Are youth workers paid the correct training wage for no more than 90 days?
– [ ] Are exempt employees paid at least $684 per week?
– [ ] Are payroll records accurate and up to date?
– [ ] Am I checking for updates to federal and state wage laws?
Step 9: Stay Informed About Future Changes
While the minimum wage in Tennessee is not expected to change in 2025, it’s important to stay alert for possible updates. Here’s what you should do:
- Check official sources regularly: The Tennessee Department of Labor and Workforce Development and the U.S. Department of Labor post updates about wage laws.
- Watch for local news: Sometimes cities or counties discuss raising the minimum wage, even if they haven’t passed new laws yet.
- Review your pay regularly: Make sure your pay matches the law, especially if you change jobs or your job duties change.
Time estimate: 5 minutes per month to check for updates
Step 10: Understand the Broader Context and What It Means for You
The minimum wage in Tennessee has not changed since 2009, and it matches the federal minimum wage. This means many workers in Tennessee earn much less than the state’s average wage of about $26.94 per hour. Some groups, like labor advocates, continue to push for higher wages, but as of 2025, there are no new laws raising the minimum wage in Tennessee or at the federal level.
What does this mean for you?
– If you’re a worker earning minimum wage, you may need to budget carefully or look for jobs that pay more.
– If you’re an employer, you must follow the law but can choose to pay more if you want to attract and keep good workers.
– If you’re new to the United States 🇺🇸 or Tennessee, understanding these rules will help you avoid problems and make sure you’re paid fairly.
As reported by VisaVerge.com, some organizations in Tennessee, like the University of Memphis, have chosen to pay higher wages, but this is not required by law and only applies to their own employees.
Final Takeaways and Next Steps
- The minimum wage in Tennessee for 2025 is $7.25 per hour, the same as the federal minimum wage.
- Tipped employees can be paid a base wage of $4.25 per hour, but total pay must reach $7.25 per hour.
- There are no state or local increases to the minimum wage in Tennessee as of 2025.
- Employers and employees should keep good records and check official sources for updates.
- If you have questions or problems, contact the U.S. Department of Labor Wage and Hour Division for help.
By following these steps and using the checklist, you can make sure you’re following the law and getting paid what you deserve. Staying informed and checking your pay regularly will help you avoid common problems and protect your rights in Tennessee’s workplace.
Checklist for Quick Reference:
- Know the minimum wage: $7.25 per hour
- Tipped employees: $4.25 base wage + tips = at least $7.25 per hour
- Youth wage: $4.25 per hour for first 90 days (under 20 years old)
- Exempt salary threshold: $684 per week
- No state or local increases in 2025
- Keep records of hours and pay
- Check official sources for updates
For more details, visit the U.S. Department of Labor Wage and Hour Division.
By understanding these rules and following the steps above, you can make sure you’re paid fairly and avoid problems with minimum wage laws in Tennessee.
Learn Today
Minimum wage → The lowest hourly pay an employer legally must give most workers.
Tipped employees → Workers receiving tips who can be paid a lower base wage combined with tips.
Exempt employees → Workers excluded from minimum wage/overtime laws due to salary and job duties.
Salary threshold → Minimum weekly pay exempt employees must receive to avoid overtime rules.
Training wage → Reduced wage rate paid to workers under 20 for their initial 90 days.
This Article in a Nutshell
Tennessee’s minimum wage remains $7.25 in 2025, equal to the federal rate. Tipped workers have a $4.25 base wage, with tips required to meet standards. Exempt employees’ salary thresholds remain unchanged after federal court action, highlighting the importance of understanding wage rules and record-keeping for compliance in Tennessee.
— By VisaVerge.com
