📅 2026 Update: Changes to Tennessee Overtime Laws

Since the original article was published, there have been significant updates to Tennessee's overtime laws. The U.S. Department of Labor (DOL) made changes that affect salary thresholds for exempt employees.

However, these changes faced legal challenges, resulting in a return to previous standards. The detailed information continues in the original article further down the page.

📈 Recent Rule Changes

In April 2024, the DOL introduced a final rule to increase salary levels for exempt employees under the Fair Labor Standards Act (FLSA). This rule aimed to raise the minimum salary level and the threshold for highly compensated employees.

⚖️ Court Rulings

On November 15, 2024, the U.S. District Court for the Eastern District of Texas vacated the DOL's 2024 final rule. This decision reinstated the 2019 rule's standards, which set the minimum salary level for exemption at $684 per week.

💼 Future Updates

The DOL plans to implement updates to salary thresholds every three years. The first of these updates is scheduled for July 1, 2027, when the minimum salary level is expected to increase to $844 per week.

🔍 Determining Exemption Status

Employers must assess whether their employees meet specific criteria for exemption. This assessment includes checking the salary basis test, salary level test, and duties test under the FLSA.

📜 Key Points Summary

  • The minimum salary level for exemption is currently $684 per week.
  • The highly compensated employee threshold is $107,432 annually.
  • Future salary updates will occur every three years, starting in 2027.
  • Employers are required to keep accurate records of hours worked and wages paid.

💡 Tips for Understanding Overtime Laws

Reviewing your specific situation with an attorney can clarify how these laws apply to you.

🔍 Understand the Salary Thresholds

Be aware of the current salary thresholds for exemption. The minimum is $684 per week, and this is important for determining whether overtime pay applies.

📋 Know the Duties Test

Understand the duties test to see if your job qualifies for exemption. Employees must meet specific job duty criteria to be exempt from overtime.

📆 Keep Accurate Records

Employers are required to maintain accurate records of hours worked. This is essential for compliance with overtime regulations.

⚖️ Check State-Specific Laws

Tennessee may have its own laws regarding overtime that could offer more protection than federal standards. Always check for state-specific regulations.

📈 Watch for Future Changes

Keep an eye on upcoming changes in salary thresholds. The next planned update will be in July 2027, which may impact current classifications.

❓ Frequently Asked Questions

❓ What is the current minimum salary for overtime exemption?

The minimum salary level for exemption under the Fair Labor Standards Act is $684 per week as of November 2024.

🔄 How often will salary thresholds be updated?

The DOL plans to update salary thresholds every three years, with the first update set for July 1, 2027.

📜 What records must employers keep?

Employers must maintain accurate records of hours worked and wages paid to employees to comply with overtime regulations.

🔍 What is the duties test for exemption?

Employees must meet specific criteria regarding their job duties to qualify for exemption from overtime pay. This is part of the assessment process under the FLSA.

💼 Are state laws different from federal laws?

Yes, state overtime laws may vary and can provide additional protections beyond federal standards. It's important to check state-specific regulations.

🕒 How is overtime pay calculated?

Overtime pay is calculated at a rate not less than time and one-half the regular pay rate for hours worked over 40 in a workweek.

⚖️ Recent Cases Related to Overtime Laws

Recent court rulings have impacted the understanding and enforcement of overtime laws. These decisions highlight the importance of knowing the current standards and how they may affect employee rights and employer responsibilities.

For more recent rulings, feel free to browse more rulings on the news page.

End of October 2026 Update






Tennessee Overtime Laws: Everything You Need to Know

In Tennessee, overtime laws require that non-exempt employees be paid one and a half times their regular pay rate for all hours worked over 40 hours in a workweek. These laws are put in place to ensure that employees are fairly compensated for their hard work and to incentivize employers to hire additional staff rather than overworking current employees. In this article, we'll take a closer look at Tennessee overtime laws, including exemptions, penalties for noncompliance, and updated information on the topic using government resources.

Exemptions to Tennessee Overtime Laws

While most employees in Tennessee are entitled to overtime pay after 40 hours worked in a week, there are several exemptions to this law. These exemptions include:

Tennessee Overtime Laws

- Executive, administrative, and professional employees: These employees are exempt from overtime if they are paid on a salary basis and perform duties that are primarily managerial, administrative, or professional in nature.
- Outside salespeople: Outside salespeople who regularly work away from the employer's place of business are exempt from overtime.
- Farm workers: Agricultural workers who are employed on a farm and earn compensation based on the amount of produce or livestock they harvest are not entitled to overtime pay.
- Seasonal employees: Employees who are employed seasonally in an amusement or recreational establishment that operates for less than seven months out of the year are exempt from overtime.
- Certain other employees: There are several other categories of employees who may be exempt from overtime, including certain computer professionals, commission-based employees, and drivers who fall under federal regulations.

It's important to note that just because an employee falls under one of these categories does not automatically exempt them from overtime pay. Employers must still comply with federal and state law regarding exemptions, and misclassifying employees can result in serious penalties.

Penalties for Noncompliance

Employers who fail to follow Tennessee overtime laws may be subject to penalties, including back pay and liquidated damages. Liquidated damages are an additional amount of money that employers must pay as a penalty for violating overtime laws. The liquidated damages are equal to the amount of unpaid overtime wages owed to the employee.

In addition to these penalties, employers who willfully violate overtime laws may be subject to criminal penalties, including imprisonment and fines. Employers who violate overtime laws may also face civil penalties, including fines and injunctions prohibiting further violations.

📝 See Also

Updated Information on Tennessee Overtime Laws

The Tennessee Department of Labor and Workforce Development is responsible for enforcing state overtime laws. In 2020, the department updated its overtime regulations to align more closely with federal overtime regulations. Specifically, the department updated the salary threshold for exemption from overtime pay.

Under the new regulations, salaried employees who earn less than $684 per week ($35,568 per year) must be paid overtime for all hours worked over 40 hours in a workweek. The previous threshold, set in 2013, was $455 per week ($23,660 per year). This change brings Tennessee in line with the federal overtime threshold set by the U.S. Department of Labor.

In addition to these changes, the Tennessee Department of Labor and Workforce Development provides resources for both employers and employees regarding overtime laws. These resources include fact sheets, guides, and frequently asked questions. Employers should consult these resources to ensure they are properly classifying employees and complying with overtime laws.

Conclusion

Tennessee's overtime laws are designed to protect workers and ensure they are fairly compensated for their hard work. While there are exemptions to these laws, employers must be careful to properly classify employees and comply with federal and state guidelines. Failure to do so can result in significant penalties. Employers should consult resources provided by the Tennessee Department of Labor and Workforce Development to stay up-to-date on overtime laws and ensure they are complying with regulations.

No TN overtime laws exist to regulate the compensation of time worked over 40 hours that week.  Instead, federal standards determine Tennessee overtime laws and enforcement is carried out by the Labor Wage and Hour Division of the US Department of Labor.  The Fair Labor Standards Act is the primary Tennessee overtime law and this sets not only minimum wage standards but also exemptions to overtime and other important provisions.

Are Tennessee employers required to follow the Tennessee overtime law?

Although there are some exemptions, Tennessee overtime laws not only have broad enforcement for employees working over 40 hours, but also state law requires that certain posters related to employee rights under the Fair Labor Standards Act be posted in the workplace to inform employees on their rights.

TN overtime laws and minors

There are strict regulations on hours that minors will be able to work.  14 or 15 year olds especially will work no more than 18 hours in a school week and 40 hours on a non-school week.  This makes them ineligible for overtime pay under Tennessee overtime laws by default.  There are other restrictions that should be noted for the employment of minors

General exemptions to TN overtime laws

Domestic workers and others that serve on a “live-in” basis do not receive overtime pay, under Tennessee overtime law, though there will be a reasonable expectation of compensation through free lodging and other benefits.  Presumably, they are not working the 24 hours a day they spend on the premises.

Most professionals, executives and sales persons do not make overtime pay under Tennessee overtime law.  This is due to the fact that they largely set the times they work themselves.  All professionals making more than $455 a week are exempt from Tennessee overtime laws.

Certain emergency workers, particularly those on-call at all times, do not receive typical overtime pay under TN overtime laws.  There might be conditions in TN overtime laws that allow this for active service during a 40 hour work week, but time spent on-call is generally not counted in over time.

You will check your employment agreement for more information about Tennessee overtime laws and its applicability to your position.

Independent contractors and TN overtime laws

Under federal and Tennessee overtime laws, employers need not pay overtime pay to independent contractors hired on a project.  That contractor however, is obligated to pay their employees overtime pay, as long as they are not immediate relatives.

Breaks and TN overtime laws

Employers under Tennessee overtime law are obligated to provide a 30 minute lunch break for six hours worked in a day.  This break does not count towards overtime hours worked.  All other breaks, typically shorter than 20 minutes, under which time the employee may not leave the premises will count towards the overtime determination

On-call work and Tennessee overtime law

Many occupations might have the employee work overtime and some of these hours might count for overtime under Tennessee overtime laws.  Although the general provision is that, an employee must be paid for time spent on company supervision or premises while “on call,” medical students, essential personnel and others might be subject to different rules under Tennessee overtime law.  Those that are free to do as they please while on call generally do not get paid overtime.