Tennessee Overtime Laws

May 5th 2026

It is common for employees to work beyond their normal hours of work. While Tennessee labor laws do not have state-specific overtime laws, employers subject to federal law are required to compensate employees for overtime hours worked over 40 in a workweek.

This article helps navigate Tennessee’s overtime laws, including overtime pay rates, rules for tipped and salaried employees, and exemptions. Whether you’re an employer aiming for compliance or an employee defending your rights, understanding these laws is crucial.

Tennessee Overtime Laws Summary

State overtime law No separate law
Federal law Overtime applies after 40 hours in a workweek under the Fair Labor Standards Act
Overtime pay rate 1.5 times the employee’s regular hourly rate
Minimum wage $7.25 per hour (federal standard)
Minimum overtime rate $10.88 per hour
Comp time instead of overtime pay Allowed for state employees
Salary threshold for overtime exemption $684 per week

This Article Covers

Tennessee Overtime Pay Rates

Overtime law in Tennessee is generally aligned with the federal Fair Labor Standards Act (FLSA). For any hours worked beyond a total of 40 in one workweek, most employees in Tennessee are entitled to overtime at a rate of 1.5 times their regular hourly rate.

The regular Tennessee minimum wage is $7.25 per hour, which makes Tennessee’s minimum overtime rate $10.88 per hour (1.5 times the minimum wage). 

Overtime Entitlement in Tennessee

According to Tennessee overtime laws, overtime pay is required for any non-exempt employees. Employees who earn below $684 a week ($35,568 annually) and work in a non-exempt industry are entitled to overtime pay.

However, your overall eligibility for overtime pay will be based on what your job duties are and the type of business you are in.

Read more about Overtime Exceptions and Exemptions in Tennessee.

Overtime Pay for Tipped Employees in Tennessee

A tipped employee in Tennessee is entitled to overtime compensation. However, their minimum wage is lower than the standard state minimum wage.

Before we continue, it is important to understand what a tip credit is. A tip credit is a system that enables employers to pay tipped employees a lower minimum wage. Simply take the standard state minimum wage minus what the tipped employee is paid.

In this case, the Tennessee minimum wage is $7.25, and the minimum tipped employee wage is $2.13, which makes the tip credit $5.12.

If a tipped employee works overtime hours, their overtime rate will be calculated based on the full minimum wage, and not the lower wage that they are being paid.

The employer is not permitted to take a higher tip credit for an employee’s overtime hours than they do for regular hours.

Overtime Pay for Salaried Employees in Tennessee

Employees who are on a fixed salary typically don’t get overtime pay, but there is an exception to this rule. The Fluctuating Workweek Method (FWW) allows fixed-salary employees to receive overtime pay of one-half (0.5) times their regular hourly rate. 

However, to be eligible for FWW, the employee must have a fluctuating workweek, meaning they work varying hours between weeks and earn at least $7.25 per hour.  

Overtime Pay for Commissioned Employees in Tennessee

Employees in Tennessee who receive commissions are eligible for overtime at a rate of 1.5 times their regular hourly rate. Their normal hourly rate must include the commissions earned as well. However, they will only be given half of that rate for every overtime hour.

For example, let’s say an employee works 45 hours a week at a rate of $10/hour and receives $100 in commissions for that week. We need to first calculate the new regular hourly rate.

To do so:

(Total hours x Hourly Rate) + Commission

= (45 x 10) + 100

= $550

Then, divide that by the total hours worked in the week.

= 550 / 45

=$12.22

To determine the overtime rate for the commissioned employees, we need to take that new regular hourly rate and halve it.

$12.22 / 2

= $6.11

Since the employee worked an extra 5 hours in the week, that makes his overtime compensation $30.56 ($6.11 x 5 hours).

The amount will vary according to the hours worked, hourly rate, and commission earned.

Mandatory Overtime in Tennessee

Tennessee state laws do not mention mandatory overtime, so that’s where the federal Fair Labor Standards Act (FLSA) comes in.

According to the FLSA, mandatory overtime is allowed, which means that employers are allowed to force their employees to work overtime hours. The federal law also allows employers to take disciplinary action against an employee who refuses overtime work.

Overtime Exceptions and Exemptions in Tennessee

It’s worth noting that not all employees are eligible for overtime pay. Those who fall under the exempt category are typically salaried employees who receive a fixed amount of pay – this means they’re not entitled to extra time pay. 

For an employee to be considered overtime-exempt, they need to earn at least $684 per week. Categories of exempt employees include:

  • Executive, administrative, and professional individuals
  • Computer employees who make $27.63 per hour
  • Outside sales employees
  • Agricultural or horticultural employees
  • Commissioned sales employees in retail or service establishments
  • Motor carrier employees are also considered exempt from overtime pay if they provide services in transportation on highways in interstate or foreign commerce

What is the Compensatory Time Law in Tennessee?

In Tennessee, compensatory time (comp time) is an alternative to overtime pay offered to state government employees. Comp time is paid time off earned instead of receiving overtime wages when employees work beyond their regular schedule.

Comp time applies to exempt employees and some non-exempt employees. However, eligibility and rules vary depending on job classification and role.

State employees who work over their normal schedule may earn comp time. For non-exempt employees, hours worked over 40 in a workweek may be converted into premium compensatory overtime instead of cash overtime.

There are strict limits on how much comp time an employee can accumulate:

  • 240 hours → Non–public safety employees
  • 480 hours → Public safety employees

Both regular comp time + premium comp time are combined. The absolute maximum accrual allowed is 480 hours of comp time.

Exceeding this limit requires approval from the Department of Human Resources and the Department of Finance and Administration.

Any overtime beyond the cap must be paid in cash. Even if employees submit it as comp time, the system will automatically convert excess hours into overtime pay.

When employees take time off using comp time, hours are deducted first from premium compensatory overtime. Once that is used up, deductions come from regular comp time.

For full details, refer to the official Tennessee State Government Employee Handbook.

Penalties for Unpaid Overtime in Tennessee

The statute of limitations for filing an overtime claim in Tennessee is two years. It can be increased to three years if an employer willfully fails to provide overtime pay.

Additionally, under the FLSA, employers cannot take disciplinary action against an employee who chooses to file an overtime complaint.

Important Cautionary Note

This content is provided for informational purposes only. While we make every effort to ensure the accuracy of the information presented, we cannot guarantee that it is free of errors or omissions. Users are advised to independently verify any critical information and should not solely rely on the content provided.