Wage-and-hour ground rules for hotel and hospitality employers in Tennessee — minimum wage, tipped-employee rules, overtime, breaks, premium pay, and the hotel-specific obligations that apply on top. Figures below were last reviewed on June 12, 2026; most rates adjust annually.
Verified as of June 12, 2026 — every figure on this page was checked against the official sources listed at the bottom on that date. How we verify →
Minimum wage#
The Tennessee minimum wage is $7.25 per hour, effective July 24, 2009. Tennessee has NO state minimum wage law; the federal FLSA $7.25 applies to covered employers (virtually all hotels).
Preemption Tennessee preempts local minimum wage ordinances — cities and counties cannot set their own general wage floors.
Tipped employees & tip pooling#
Tennessee allows a tip credit: employers may pay tipped employees a cash wage of $2.13 and claim up to $5.12 per hour in tips toward the minimum wage. Federal FLSA conditions: more than $30/month in tips, employer notice, tips bring pay to $7.25. No state tipped-wage law; FLSA governs. Tenn. Code §50-2-107 requires that mandatory gratuities/service charges represented as such be paid over to the employee(s) who rendered the service.
Tip pooling#
FLSA governs pooling; in addition, Tenn. Code §50-2-107 protects employee gratuities — amounts billed to customers as gratuities belong to the serving employees. (Tenn. Code §50-2-107; 29 U.S.C. §203(m)(2)(B))
See the federal baseline rules in our tip credit and tip pooling briefs — the stricter of federal or Tennessee law controls.
Overtime#
Overtime is due after 40 hours in a workweek. No state overtime law; FLSA 1.5× over 40 applies.
Run the math — including the tipped-overtime trap — with the tipped overtime calculator.
Meal & rest breaks#
Meal breaks: 30-minute unpaid meal/rest break for employees scheduled to work 6 consecutive hours or more, not to be scheduled during the first hour; exception where the workplace environment provides ample opportunity to rest; tipped restaurant-type employees may knowingly waive in writing (2017 amendment). (Tenn. Code §50-2-103(h))
Rest breaks: Not required by Tennessee law.
Scheduling & premium pay#
- Reporting-time pay: None required by state law.
- Split-shift premium: None.
- Spread of hours: None.
Service charges & gratuities#
Tenn. Code §50-2-107: where a hotel/restaurant adds a mandatory service charge or gratuity represented to the customer as a gratuity, the full amount must be remitted to the employee(s) who performed the service; misappropriation is a misdemeanor and supports civil claims. (Tenn. Code §50-2-107) Background: service charges, auto-gratuities & resort fees.
Pay administration#
- Pay frequency: At least SEMIMONTHLY for private employers of 5+; wages earned in the first half of the month payable by the 5th of the next month, second half by the 20th (Tenn. Code §50-2-103).
- Wage statements: No general pay-stub statute; FLSA recordkeeping applies. Deductions require employee authorization.
- Exempt salary floor: $684.00/week (federal) — Federal $684/week applies.
- Lodging credit: FLSA §3(m) standards apply (reasonable cost, voluntary acceptance, records) — relevant to Gatlinburg/Smoky Mountain resort housing.
Tenn. Code §50-2-112 (2013) preempts local minimum wages and local wage mandates on private employers — Nashville/Memphis living-wage rules reach only government employees/contractors. The §50-2-107 service-charge pass-through and the 6-hour meal-break rule are Tennessee's two hotel-specific compliance items.
Official sources#
- TN Dept. of Labor & Workforce Development — Wage Regulations
- TN DLWD — Labor laws (wage regulations, breaks) (accessed 2026-06-12)
- Horton Group — State minimum wage rates 2026 (cross-check) (accessed 2026-06-12)