Minimum Wage by StateAs of 2026-06-24
TNTip credit permitted

Tennessee tipped minimum wage 2026

The Tennessee tipped cash wage is $2.13 per hour. Employers may take a tip credit of up to $5.12 per hour, provided the worker's cash wage plus tips reaches the state minimum of $7.25 per hour for every workweek. [DOL Tipped][TN labor dept.]

Cash wage and tip credit

Cash $2.13Credit $5.12Combined $7.25

When tips fall short

If a worker's cash wage plus reported tips do not average to the Tennessee minimum of $7.25 per hour over a workweek, the employer must pay the shortfall. The Tip Credit Checker tool runs the math at /tools/tip-credit. Under the 2021 DOL final rule, time spent on non-tip-producing work above 20 percent of the shift (or 30 continuous minutes) must be paid at the full minimum, not the tip-credited rate. [DOL FS-15]

Background

No state minimum-wage statute. FLSA federal floor of $7.25 controls. Local ordinances pre-empted by Tenn. Code Ann. section 50-2-112.

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