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Payment upon Separation from Employment
An employer must pay an employee who is discharged or terminated or who has quit or
resigned all wages due no later than the next regular pay day following the date of
dismissal or voluntary leaving, or twenty-one (21) days following the date of discharge or
voluntary leaving, whichever occurs last. Tennessee Stat. 50-2-103
Employees who are suspended or resigns due to a labor dispute (strike)
Tennessee does not have a law specifically addressing the payment of wages to an
employee who leaves employment due to a labor dispute, however, to ensure compliance
with known laws, an employer should pay employee all wages due no later than the next
regular pay day following the date of dismissal or voluntary leaving, or twenty-one (21) days
following the date of discharge or voluntary leaving, whichever occurs last.
Wages in Dispute
Tennessee does not have any laws requiring an employer to pay an employee wages
conceded to be due when involved in a wage dispute with the employee.
Deductions from Wages
According to the Tennessee Department of Labor & Workforce Development, an employer
may only deduct or withdraw wages from an employee's pay if the employee have given
written consent.
Thus, an employer may make deductions from an employee's wages for the following
items only if the employee has consented to it in writing:
- cash shortages
- breakage, damage, or loss of the employer's property
- required uniforms
- required tools
- other items necessary for employment
TN Dept. of Workforce Dev. FAQ
Uniforms, Tools, and Other Equipment Necessary for Employment
Tennessee does not have any laws prohibiting an employer from requiring an employee to
purchase a uniform, tools, or other items necessary for employment.
Medical or Physical Exams, including Drug Tests, Required for Employment
Tennessee does not have any laws prohibiting an employer from requiring an applicant or
employee to pay the cost of a medical examination or the cost of furnishing any records
required by the employer as a condition of employment.
Notice of Wage Reduction
An employer must notify an employee before changing their wage rate. Tennessee Stat.
50-2-101
Statement of Wages (Pay Stub)
Tennessee does not have any laws requiring employers to provide employees of notice of
wage rates, dates of pay, employment policies, fringe benefits, or other terms and
conditions of employment.
Record Keeping Requirements
Tennessee does not have any laws requiring an employer to keep any employment-related
documents.
Federal law requires every employer covered by the Fair Labor Standards Act (FLSA) to
keep certain records for each covered, nonexempt worker, for at least 3 years. For more
information, visit FLSA.
Frequency of Wage Payments
An employer must pay wages as follows:
- All wages earned and unpaid prior to the first day of any month must be paid not later
than the 20th day of the month following the one in which the wages were earned;
- All wages earned and unpaid prior to the 16th day of any month shall be due and payable
not later than the fifth day of the succeeding month.
An employer may pay employees more frequently than twice per month (semi-monthly).
An employer must establish and maintain regular pay days and must post and maintain
notices, printed or written in plain type or script, in at least two (2) conspicuous places
where the notices can be seen by the employees as they go to and from work, setting forth
the regular pay days.
In case an employee is absent from the usual place of employment at the time of the
payment of wages, the employer must pay the employee within a reasonable time after the
employee has made a demand for the wages.
Tennessee Stat. 50-2-103
Manner of Payments
An employer may pay employees by:
- cash,
- check or draft, payable at some bank or other established place of business, without
discount, exchange or cost of collection, in cash,
- direct deposit?
Tennessee Stat. 50-2-103
Direct Deposit
An employer may pay an employee by direct deposit, however, the employee must be able
to choose the financial institution with which the deposit is made. There is nothing
prohibiting an employer from requiring an employee be paid by direct deposit. TN Dept. of
Workforce Dev. FAQ
EmploymentLawHandbook.com
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Your Employment and Labor Law Resource
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Notice Requirements
An employer must inform an employee of his or her wage rate prior to the employee
performing any work at that wage rate. Tennessee Stat. 50-2-101
An employer must post and maintain notices, printed or written in plain type or script, in at
least two (2) conspicuous places where the notices can be seen by the employees as they
go to and from work, setting forth the regular pay days. Tennessee Stat. 50-2-103
An employer may not misrepresent the amount of wages a new hire will be paid.
Tennessee Stat. 50-2-104
Wage Payment Laws for Private Sector Employers
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Topics Covered:
- Frequency of Wage Payments
- Manner of Payments
- Payment upon Separation from Employment
- Employees who are fired, discharged, or terminated
- Employees who quit or resign
- Employees who is suspended or resigns due to a labor dispute (strike)
- Employees who are laid off
- Wages in Dispute
- Cash shortages
- Damage, loss or destruction of employer property
- Dishonored or returned checks
- Uniforms
- Tools and other items necessary for employment
- Pre-hire medical, physical, or drug tests
- Notice of Wage Reduction
- Statement of Wages (Pay Stub)
- Record Keeping Requirements
- Notice Requirements