Tennessee Overtime Rules: A Complete Practical Guide

Tennessee does not have its own detailed overtime statute, so most overtime questions in the state are answered by the federal Fair Labor Standards Act (FLSA) and regulations from the U.S. Department of Labor. This guide explains how those rules work for Tennessee workers and businesses, using clear examples and a Tennessee-focused perspective.

1. Big Picture: How Overtime Works in Tennessee

Because Tennessee lacks separate state-level overtime requirements, employers must follow federal overtime law for most employees. Under the FLSA:

• Most nonexempt employees must be paid overtime for all hours worked over 40 hours in a single workweek.
• The overtime rate must be at least 1.5 times the employee’s regular hourly rate of pay.
• There is no federal requirement for overtime based purely on daily hours (for example, working more than 8 hours in one day does not automatically trigger overtime unless total hours for the week exceed 40).

States are allowed to add extra protection on top of federal rules, but Tennessee has elected not to create separate overtime standards, so the FLSA is the controlling law for most situations.

2. Key Definitions: Workweek, Regular Rate, and Covered Employees

2.1 What counts as a workweek?

The FLSA defines a workweek as any fixed and regularly recurring period of 168 hours—seven consecutive 24-hour periods. An employer may choose any start day and time, such as:

• Sunday 12:00 a.m. to Saturday 11:59 p.m.
• Monday 8:00 a.m. to the following Monday 7:59 a.m.

Once set, the workweek cannot be shifted around simply to avoid paying overtime.

2.2 What is the “regular rate” of pay?

The regular rate is more than just the hourly wage. Under federal rules, it includes all compensation for employment (such as hourly pay, most nondiscretionary bonuses, and commissions) divided by the total number of hours worked in the workweek, with some limited exclusions.

• If an employee earns straight hourly pay only, the regular rate is normally their hourly rate.
• If the employee receives bonuses or commissions that must be included, those payments are converted into an hourly amount and added to the regular rate before calculating overtime.

2.3 Who is covered by the FLSA?

Most Tennessee employers and workers are covered through either enterprise coverage (the business meets certain size or revenue tests) or individual coverage (the worker is engaged in interstate commerce, which is interpreted broadly). In practice, the large majority of employees in Tennessee fall under the FLSA’s overtime protections.

3. Nonexempt vs. Exempt Employees

The central overtime question for any position is whether the employee is nonexempt (entitled to overtime) or exempt (not entitled to overtime under federal law). Job titles alone do not determine status.

3.1 General rules for exempt employees

To classify someone as exempt under the white-collar exemptions (executive, administrative, professional, and certain computer employees), three general tests must be met under U.S. Department of Labor regulations:

• Salary basis test

  the employee is paid a predetermined salary that does not fluctuate based on quantity or quality of work.

• Salary level test

  the salary must meet or exceed a minimum threshold set by federal regulation (periodically updated).

• Duties test

  the employee’s primary job duties must be executive, administrative, professional, or otherwise meet specific regulatory criteria.

Employees who do not satisfy all of these requirements are typically nonexempt and must receive overtime pay for hours over 40 in a workweek.

3.2 Common categories of exempt employees

• Executive: Primary duty is managing the enterprise or a department; regularly supervises at least two full-time employees; has real input into hiring or firing decisions.
• Administrative: Office or nonmanual work directly related to management or general business operations; exercises discretion and independent judgment on significant matters.
• Learned or creative professional: Advanced knowledge in a field of science or learning, or work requiring invention, imagination, originality, or talent in a recognized artistic or creative field.
• Certain computer employees: Systems analysts, programmers, and similarly skilled workers who meet detailed duties criteria and salary/hourly tests.

Employers in Tennessee must apply these federal definitions carefully when deciding whether a position is exempt; misclassification is a frequent source of wage disputes and lawsuits.

4. How Overtime Is Calculated in Tennessee

4.1 Standard overtime rule

For nonexempt employees, overtime is owed for:

• All hours over 40 in a single workweek, and
• At a rate of at least time and one-half (1.5 times) the employee’s regular rate of pay.

4.2 No daily overtime or double-time requirement

Federal law does not require employers to pay overtime based solely on long shifts within a given day, or to pay “double-time” for holidays or weekends. The only mandatory federal threshold is the 40-hour workweek requirement. Tennessee law does not add extra obligations on top of that, so employers can:

• Schedule long shifts (for example, 12 hours in one day) without extra daily overtime, as long as total weekly hours remain at or under 40.
• Pay the same rate for weekend and holiday work, unless a contract, policy, or collective bargaining agreement promises more.

4.3 Sample overtime calculation

Consider a Tennessee employee with:

• Hourly rate: $18.00
• Hours worked in a workweek: 46

The overtime calculation would look like this:

If the employee also earned a nondiscretionary production bonus that week, the bonus may need to be folded into the regular rate before recalculting overtime, increasing the total due.

5. Tennessee-Specific Context and Public Employees

Although general overtime rules come from federal law, Tennessee employers must still consider state-level policies that apply in particular settings—especially government agencies.

5.1 State of Tennessee attendance and overtime practices

The State of Tennessee’s attendance and leave manual recognizes that agencies must calculate all hours actually worked, including overtime hours, when determining pay and leave for state employees. Public entities may have additional internal rules on:

• When overtime must be approved in advance.
• How overtime is recorded and verified.
• Whether certain employees may receive compensatory time off instead of cash (subject to federal restrictions).

5.2 Compensatory time for public employees

Under the FLSA, public-sector employers, such as state and local government agencies, may in some circumstances grant compensatory time off instead of cash overtime, at a rate of at least 1.5 hours of comp time for each overtime hour worked, up to certain caps. Private Tennessee employers, however, generally cannot use comp time to replace required overtime pay under federal law.

6. Common Overtime Issues in Tennessee Workplaces

6.1 Misclassifying employees as exempt

One of the most frequent problems is treating employees as exempt simply because they are paid a salary or have a management-sounding title. If the duties and salary thresholds set by federal regulations are not met, the employee may be nonexempt and owed overtime.

6.2 Off-the-clock work

Employers must count all hours an employee is suffered or permitted to work as hours worked—even if they were not officially scheduled or pre-approved. Examples include:

• Answering work emails or calls at home after hours.
• Setting up equipment before a shift or closing down after clocking out.
• Required training time.

If these activities push hours above 40 in a week, overtime may be owed.

6.3 Improper deductions from salary

For exempt employees, making certain kinds of pay deductions may undermine the salary basis requirement and convert them into nonexempt workers under federal rules, potentially entitling them to overtime. Employers should carefully review Department of Labor guidance before making salary deductions.

6.4 Changes to federal salary thresholds

Over the last several years, the Department of Labor has updated or proposed updates to the minimum salary level required for many white-collar exemptions, which affects nonprofit, public, and private employers in Tennessee. Employers must monitor these changes so that workers whose salaries no longer meet the threshold are properly reclassified or given raises to maintain exempt status.

7. Employee Rights and Employer Responsibilities

7.1 Rights of employees in Tennessee

Covered nonexempt employees generally have the right to:

• Receive at least the federal minimum wage for each hour worked.
• Be paid overtime (1.5× regular rate) for all hours worked over 40 in a workweek.
• Be free from retaliation for making a good-faith complaint about unpaid overtime or cooperating with a federal or state wage investigation.
• Recover back wages and, in some cases, additional damages and attorney’s fees if overtime was unlawfully withheld.

7.2 Obligations of Tennessee employers

Employers in Tennessee must:

• Correctly determine whether each position is exempt or nonexempt based on federal law.
• Keep accurate, contemporaneous records of hours worked by nonexempt employees.
• Pay overtime promptly when due, in the correct amount.
• Avoid agreements that attempt to waive overtime rights, which are generally unenforceable under the FLSA.

8. Practical Tips for Compliance and Problem-Solving

8.1 For employers

• Review job descriptions regularly to ensure that actual duties match the claimed exemption category.
• Train supervisors not to encourage off-the-clock work and to approve overtime consistently.
• Use reliable timekeeping systems so all hours worked are captured, including remote and flexible work.
• Monitor regulatory updates from the U.S. Department of Labor, especially regarding salary thresholds and interpretive guidance.

8.2 For employees

• Track your own hours, even if your employer uses a clock-in system, so you can spot discrepancies.
• Ask how your status is classified (exempt or nonexempt) and what that means for overtime.
• Raise concerns in writing if you believe overtime is unpaid or miscalculated.
• Consider consulting a qualified employment attorney or contacting the U.S. Department of Labor’s Wage and Hour Division for guidance if issues persist.

9. Frequently Asked Questions About Tennessee Overtime

Q1: Does Tennessee have its own overtime law separate from federal rules?

Tennessee does not have separate state-level overtime requirements for most private employers, so the federal FLSA 40-hour-per-week overtime rule applies to covered nonexempt employees.

Q2: Is overtime required after working more than eight hours in a single day?

No. Neither federal law nor Tennessee law mandates daily overtime. Overtime becomes due only when total hours worked exceed 40 in a fixed workweek, regardless of how many hours are worked on any individual day.

Q3: Do weekends or holidays automatically trigger overtime pay in Tennessee?

No. Federal law does not require extra pay simply because hours fall on weekends or holidays. Overtime is required only for hours over 40 in the workweek, unless an employer’s policy, contract, or collective bargaining agreement promises more generous pay.

Q4: Can a private Tennessee employer give comp time instead of paying overtime?

Generally, private-sector employers covered by the FLSA cannot substitute compensatory time off for legally required overtime pay. Comp time in lieu of cash overtime is primarily available to public-sector employers under strict federal conditions.

Q5: What should I do if I think I am misclassified and owed overtime?

You can start by documenting your hours and pay, reviewing your job duties and salary, and raising the issue with your employer. If the issue is not resolved, you may contact the U.S. Department of Labor’s Wage and Hour Division or speak with an attorney experienced in wage and hour law to explore recovery of unpaid overtime and other remedies.

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medha deb

 

Medha Deb is an editor with a master's degree in Applied Linguistics from the University of Hyderabad. She believes that her qualification has helped her develop a deep understanding of language and its application in various contexts.

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