Tennessee Wage Payment Laws
- Frequency of wage payments
- Manner of wage payments
- Direct deposit
- Payment upon separation from employment
- Wage in dispute
- Deductions from wages
- Uniforms, tools, and other equipment necessary for employment
- Pre-hire medical, physical, or drug tests
- Notice of wage reduction
- Statement of wages (pay stubs)
- Record keeping requirements
- Notice requirements
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.
Manner of Wage Payments
An employer may pay employees by:
- check or draft, payable at some bank or other established place of business, without discount, exchange or cost of collection, in cash,
- 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.
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
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.
Pre-hire Medical, Physical, or Drug Tests
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.
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