- At-will employment: Tennessee is an at-will employment state, meaning employers can terminate employees for any reason, as long as it is not discriminatory or in violation of other federal laws.
- Minimum wage compliance: Tennessee does not have a state-mandated minimum wage; employers must adhere to the federal minimum wage, which is $7.25 per hour.
- Child labor restrictions: Tennessee has strict child labor laws, restricting work hours and types of jobs for minors under 18 years of age.
Tennessee payroll laws align with federal requirements in areas such as overtime and recordkeeping. Employers are required to pay employees promptly, typically at least once per month, and to provide an itemized statement of wages. Overtime must be paid at 1.5 times the regular rate for hours worked beyond 40 in a workweek. Tennessee does not impose a state income tax on wages, simplifying payroll calculations.
Access competitive benefits like health insurance and retirement plans, often at a lower cost through a PEO. Leverage its pooled volume for enterprise rates - resold to PEO customers, with no employment minimums in Tennessee.
- Health insurance requirements: Employers with 50 or more full-time employees must provide health insurance under the federal Affordable Care Act (ACA) guidelines.
- Workers’ compensation insurance: Tennessee requires all employers with five or more employees to carry workers’ compensation insurance. Exceptions apply for certain agricultural and construction employers.
- Retirement benefits: There is no state mandate for retirement benefits, but PEOs can assist with access to 401(k) plans.
Check out our comprehensive state hiring guide.



.webp)


.png)








