Tennessee Minimum Wage: Rates & 2025 Updates

Understanding Tennessee's Hourly Wage Regulations

If you work in the Volunteer State, you might wonder how the minimum wage laws in Tennessee compare to national rates. Many job seekers and employees are curious about hourly pay standards, minimum wage increases, and changes that could impact their income in 2025 and beyond.

What Is the Current Minimum Wage in Tennessee?

Tennessee does not have a state-mandated minimum wage. Instead, it follows the federal minimum wage. As of June 2024, the federal minimum wage is $7.25 per hour. Tennessee employers must pay at least this amount to non-exempt employees.

• The federal minimum wage rate applies across cities and counties in Tennessee.
• No county or municipality in Tennessee has set a higher local minimum wage.
• This means most entry-level or minimum wage jobs in Tennessee pay $7.25 per hour.

How Tennessee Compares to Other States

Many states have increased their minimum wages above the federal level. However, Tennessee remains one of the few states that keeps its minimum in line with federal law. Here’s where Tennessee stands:

• Neighboring states like Arkansas ($11.00), Missouri ($12.30), and Virginia ($12.00) have higher minimum wages as of 2024.
• Kentucky, Alabama, and Mississippi also follow the $7.25 federal rate.
• Because of this, Tennessee ranks among the states with the lowest minimum wage requirements in the U.S.

Updates and Potential Changes to Tennessee Minimum Wage in 2025

People ask if the minimum wage is going up in Tennessee. As we head toward 2025, there has been discussion in the state legislature about increasing the minimum wage. However, no new laws have passed yet to change the base rate for hourly workers in Tennessee.

• No confirmed increase in minimum wage for Tennessee in 2025 as of mid-2024.
• Legislation to raise the state rate has been introduced but not enacted.
• If the federal government increases the federal wage, Tennessee’s minimum wage would increase to match it automatically.

Who Is Affected by Minimum Wage Laws in Tennessee?

Not all jobs and employees fall under minimum wage protections. Here’s who the laws impact the most:

• Hourly workers in hospitality, food service, retail, and entry-level positions.
• Tipped employees must be paid at least $2.13 per hour, plus tips, but tips must bring total hourly earnings to at least $7.25.
• Some agricultural workers, students, and certain exempt employees may be excluded or have different wage requirements.

It is important to check with the Tennessee Department of Labor or the U.S. Department of Labor if you have questions about exemptions or eligibility.

Cost of Living and Its Impact on Minimum Wage Earners

Tennessee is often considered an affordable state compared to the national average. Still, minimum wage workers may feel the strain of rising housing costs, gas prices, and essential goods.

• Major cities like Nashville, Knoxville, and Memphis have seen significant growth in rent prices.
• Living on minimum wage can be challenging for single adults and families.
• Advocacy groups in Tennessee continue to push for a higher minimum wage to match the cost of living growth.

What Should Employers in Tennessee Know?

If you hire staff in Tennessee, it is your responsibility to comply with federal wage laws. Most jobs in the state require paying at least $7.25 per hour unless certain exemptions apply.

• Make sure to post updated labor law posters showing current minimum wage rates.
• Track employee hours and payments carefully to avoid legal issues.
• If operating in states bordering Tennessee, pay attention to local minimum wages in those states—they may be higher.

Frequently Asked Questions About Tennessee Minimum Wage

What is the minimum wage in Tennessee in 2024?

The minimum wage in Tennessee as of 2024 is $7.25 per hour, which matches the federal minimum wage. No state or local increase is currently in effect.

Will the minimum wage increase in Tennessee for 2025?

No confirmed increase has been passed for 2025. Future changes depend on state legislation or a change in the federal minimum wage set by Congress.

Are tipped employees paid differently in Tennessee?

Yes, Tennessee follows federal rules. Tipped employees must receive at least $2.13 per hour directly. If their total earnings including tips are less than $7.25 per hour, the employer must make up the difference.

Is there a separate minimum wage for minors or students in Tennessee?

Some students and minors may qualify for special wage rates under federal law, such as the Youth Minimum Wage of $4.25 per hour for the first 90 days of employment. Always verify eligibility before paying reduced rates.

How can you advocate for a higher minimum wage in Tennessee?

Supporters can contact state legislators, participate in local groups, and stay informed about policy proposals. Voting in local and state elections can also influence wage laws and future increases.

Key Takeaways for Tennessee Minimum Wage in 2025

Whether you are entering the workforce, managing a business, or simply following wage policy news, it is wise to stay updated. Wage laws can change quickly. For the latest information, check the Tennessee Department of Labor or the U.S. Department of Labor’s official minimum wage resources. Keeping informed can help you make confident decisions about your employment or business in Tennessee.