Tennessee Minimum Wage 2026: $7.25 an Hour, and Why Cities Can't Raise It

Tennessee is one of a handful of states with no minimum wage law of its own. That means the federal minimum, $7.25 an hour, is the floor for most jobs in the state [1]. Cities and counties can’t raise it for private employers, either [4].

Why the federal rate is the Tennessee rate

The U.S. Department of Labor lists Tennessee as having no state minimum wage law. Employers covered by the federal FLSA must pay at least the federal minimum of $7.25 an hour [1]. Most employers are covered.

Bills to create a state minimum wage have been filed, but none is law [1]. A recent one, which would have set a $20 minimum, failed in a House subcommittee on February 11, 2026 [6]. For how the federal rate compares with other states, see BestAmerica’s guides to the federal minimum wage and minimum wage by state.

Tipped workers

Servers, bartenders and others who regularly get more than $30 a month in tips can be paid a cash wage as low as $2.13 an hour. The employer can count up to $5.12 an hour of tips, called the tip credit , toward the $7.25 minimum [2].

The rule that protects you: your cash wage plus tips has to reach at least $7.25 for every hour you work. If a slow shift leaves you short, your employer must pay the difference [2].

Cities and counties can’t set a higher wage

Nashville, Memphis, Knoxville and every other Tennessee city are blocked from setting their own minimum wage for private businesses. A 2023 state law, Public Chapter 309, preempts wage and benefit mandates that local governments impose on private employers, unless state or federal law requires them [4]. It also bars local governments from using their contracts to control the wages their vendors pay [4].

Local governments can still decide what they pay their own employees [4]. So a city job may pay more than $7.25, but a city can’t require a private employer to.

Overtime

Covered workers who aren’t exempt earn at least 1.5 times their regular rate for hours over 40 in a workweek [3]. A workweek is a fixed, repeating 168-hour period, and hours can’t be averaged across two weeks [3]. A 50-hour week followed by a 30-hour week still means 10 hours of overtime.

If you’re paid less than you’re owed

Start by asking your employer how your pay was figured; mistakes happen. If that doesn’t fix it, go to the federal government. Tennessee’s labor department doesn’t investigate minimum wage complaints. Because the state has no wage law of its own, it refers them to the U.S. Department of Labor [5].

The Department of Labor’s Wage and Hour Division takes complaints at 1-866-487-9243. Complaints are confidential, and your employer isn’t allowed to retaliate against you for filing one [7]. You can also talk with an employment lawyer about your options.