Tennessee Employment Laws for Employers

Tennessee has no state minimum wage law; employers subject to the FLSA must pay the federal minimum wage of $7.25 per hour. (U.S. DOL WHD, State Minimum Wage Laws (Tennessee))

“Tennessee No state minimum wage law. Employers subject to the Fair Labor Standards Act must pay the current Federal minimum wage of $7.25 per hour.”

dol.gov · lwdsupport.tn.gov

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Tennessee employers must provide a 30-minute unpaid meal or rest period to employees scheduled to work 6 consecutive hours, except in workplaces that by their nature of business provide ample opportunity to take a break. (Statute (Tennessee), per U.S. DOL WHD meal period table)

“Tennessee ½ hour for employees scheduled to work 6 consecutive hours or more. The meal break shall not be scheduled during or before the first hour of scheduled work activity. Statute Applicable to every employer, except in workplace environments that by their nature of business provide ample opportunity to take an appropriate meal break. An employer may waive the right to a thirty-minute unpaid meal break pursuant to the voluntary written request of an employee who is principally employed in the service of food or beverages to customers and who, in the course of such employment, receives tips and reports the tips to the employer.”

“State law requires that employees must be provided a thirty (30) minute unpaid meal or rest period if scheduled six (6) consecutive hours, except in workplace environments that by their nature of business provides for ample opportunity to rest or take an appropriate break.”

dol.gov · tn.gov

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Tennessee recognizes a common-law retaliatory discharge claim for an at-will employee fired for trying to exercise a statutory or constitutional right, or for any other reason that violates a clear public policy evidenced by an unambiguous constitutional, statutory or regulatory provision (Webb v. Nashville Area Habitat for Humanity). A statutory claim also exists under the Tennessee Public Protection Act. (Levan v. Sears, Roebuck & Co., No. 3:11-cv-578 (E.D. Tenn. Nov. 25, 2013); Young v. United Parcel Service, Inc., No. 3:12-cv-0261 (M.D. Tenn. Jan. 16, 2014), citing Webb v. Nashville Area Habitat for Humanity, Inc., 346 S.W.3d 422, 437-38 (Tenn. 2011))

“In order to assert a common law retaliatory discharge claim, a plaintiff must show: (1) that an employment-at-will relationship existed; (2) that he was discharged; (3) that the reason for his discharge was that he attempted to exercise a statutory or constitutional right, or for any other reason which violates a clear public policy evidenced by an unambiguous constitutional, statutory, or regulatory provision; and (4) that a substantial factor in the employer’s decision to discharge him was his exercise of protected rights or his compliance with clear public policy.”

“Young’s common law retaliatory discharge claim requires him to prove: (1) that an employment-at-will relationship existed; (2) that the employee was discharged; (3) that the reason for the discharge was that the employee attempted to exercise a statutory or constitutional right, or for any other reason which violates a clear public policy evidenced by an unambiguous constitutional, statutory, or regulatory provision; and (4) that a substantial factor in the employer’s decision to discharge the employee was the employee's exercise of protected rights or compliance with clear public policy.”

govinfo.gov · govinfo.gov

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A Tennessee employee handbook can become part of an employment contract, but only if it contains specific language showing the employer's intent to be bound by its provisions (Keller v. Casteel; Rose v. Tipton County); courts apply a high standard, and language reserving the employer's right to change the handbook generally prevents it from being a contract. (Freeze v. City of Decherd, No. 12-6160 (6th Cir. June 4, 2014) (published), citing Rose v. Tipton Cnty. Pub. Works Dep't, 953 S.W.2d 690, 692 (Tenn. Ct. App. 1997); Bowman v. Town of Ashland City, No. 3:25-cv-00193 (M.D. Tenn. Feb. 17, 2026), quoting Keller v. Casteel, 602 S.W.3d 351, 360 (Tenn. 2020))

““In order to constitute a contract, however, the handbook must contain specific language showing the employer’s intent to be bound by the handbook’s provisions.””

“Tennessee courts have recognized that an employee handbook may, as a matter of state law, “become part of an employment contract,” but only if it “contain[s] specific language showing the employer’s intent to be bound by the handbook’s provisions.””

opn.ca6.uscourts.gov · govinfo.gov

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In Tennessee the implied duty of good faith and fair dealing cannot modify the employment-at-will doctrine: an employer does not breach it by firing an at-will employee for any reason (Goot v. Metropolitan Government of Nashville). (Coker v. Carrier Corp., No. 4:05-cv-00051 (E.D. Tenn.), quoting Goot v. Metro. Gov't of Nashville & Davidson Cnty., No. M2003-02013-COA-R3-CV (Tenn. Ct. App. Nov. 9, 2005), and McGee, 106 S.W.3d at 67; Foxx v. Healix Infusion Therapy, Inc., No. 3:12-cv-00120 (E.D. Tenn. Mar. 4, 2013), quoting Hill v. Sw. Tenn. Cmty. College (Tenn. Ct. App. 2010) and Goot (Tenn. Ct. App. 2005))

““the implied duty of good faith and fair dealing cannot modify the employment-at-will doctrine and, therefore, . . . an employer does not breach its implied duty of good faith and fair dealing when it discharges an at-will employee for any reason.””

“The employment-at-will doctrine is not affected, however, by the duty.”

govinfo.gov · govinfo.gov

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