Tennessee tip laws (2026)
Tennessee has no state minimum wage, so federal rules set the floor. FLSA-covered tipped workers can get $2.13 an hour in cash, as long as tips bring the total to $7.25. Final pay is due by the next regular payday or 21 days after leaving, whichever is later.
Tennessee at a glance
Federal tip creditTennessee: $7.25 an hour minimum wage. Tipped staff can be paid $2.13 cash, with up to $5.12 counted from tips.
| State minimum wage | $7.25/hr | The federal rate applies to most restaurants. See Wages.[1] |
|---|---|---|
| Tipped cash wage | $2.13 | Plus up to $5.12 in tips = $7.25.[1] |
| Max tip credit | $5.12 | Federal rule applies.[1] |
| Tip pooling | Allowed | Mandatory pools allowed.[1] |
| Card-fee deduction | Pro rata only | Only the tip's share of the fee.[1] |
| Local minimum wages | None | State law blocks local rates.[2] |
Rates verified against the U.S. Department of Labor on . Rates as of . Tipped totals are worked out from the rates above. Download this data (CSV)
How Tennessee works
No state minimum wage, so federal rules set the floor
Tennessee's labor agency says no state law sets a minimum wage. Federal law covers wages, tip credits and pools, while Tennessee adds a few rules of its own.[3][4][1][5][6][2]
What Tennessee sets
- Final pay by the next payday or 21 days, whichever is later
- Pay card rules: electronic transfer option, fee disclosure, one free withdrawal
- A 2023 ban on local wage and benefit mandates
What federal law sets
- $7.25 minimum wage
- $2.13 tipped cash wage, up to $5.12 tip credit
- Tip pool, manager and card-fee rules
- Overtime after 40 hours a week
02The yes/no sheet
Can you do this in Tennessee?
In Tennessee you can take the federal tip credit, can require staff to join a tip pool and can take out only the tip's share of a card fee. Each answer below carries its condition and an official source.
| Number | Can you… | Answer | The condition |
|---|---|---|---|
| 01 | Take a tip credit against minimum wage? | Yes (federal) | Federal rule: pay $2.13 cash and count up to $5.12 in tips.[1] |
| 02 | Make staff join a tip pool? | Yes | Federal pool rules cover voluntary tips. Tennessee's automatic-charge statute is a separate question; its current text wasn't confirmed.[1] |
| 03 | Include bartenders, bussers, runners and hosts? | Depends | Bartenders and bussers can share. Food runner and host: traditional pools are for jobs that usually get tips. Non-tipped roles need full minimum wage with no tip credit. No managers.[1] |
| 04 | Include cooks and dishwashers? | Depends | Cook and dishwasher: only in a pool where everyone gets at least $7.25 in cash and no tip credit is taken. No managers.[1] |
| 05 | Give managers or supervisors a share? | No | Managers and supervisors can't keep workers' tips or take pool shares. They keep only tips for service they alone provide. No salary test applies.[1] |
| 06 | Let an owner keep any of the tips? | No | An owner with 20% or more equity who actively manages counts as a manager. No employer may keep workers' tips.[1] |
| 07 | Pick your own split (hours, points or percentages)? | Depends | No federal cap on pool percentages. Eligibility, notice and minimum wage rules still apply.[1] |
| 08 | Take card processing fees out of tips? | Pro rata | Only the actual card fee on the tip can come out, never pushing pay below minimum. That doesn't extend to protected automatic charges.[1] |
| 09 | Cover walkouts, breakage or register shortages from tips? | No | Not from tips.[1] |
| 10 | Pay tips on a payroll card? | Yes | Offer electronic transfer, disclose card fees and give free access. Federal payment-choice and prepaid-card rules also apply. Offer another way to get paid too.[6] |
Not covered here? Ask the Tennessee Department of Labor and Workforce Development, Labor Standards Unit at 844-224-5818 or on tn.gov/workforce/employees/labor-laws/labor-laws-redirect/wages-breaks.html.
03State vs federal
Tennessee vs federal law
Tennessee follows the federal baseline on the rules below: $7.25 minimum wage, $2.13 tipped cash wage and up to $5.12 in tip credit.
| Rule | Federal (FLSA) | Tennessee | Comparison |
|---|---|---|---|
| Minimum wageFederal applies | Federal$7.25[1] | Tennessee$7.25[4][3] | Federal applies |
| Tipped cash wageFederal applies | Federal$2.13[1] | Tennessee$2.13[1][4][3] | Federal applies |
| Max tip creditFederal applies | Federal$5.12[1] | Tennessee$5.12[1] | Federal applies |
| Who counts as tippedFederal applies | FederalMore than $30 a month in tips, customarily and regularly received in the occupation.[1] | TennesseeFederal test: more than $30 a month in tips, in a job where tips are customary.[1] | Federal applies |
| Managers in the poolState rule | FederalManagers/supervisors meeting the executive duties test cannot keep employees’ tips or receive from pools; they may keep only tips received directly for services they directly and solely provide. No salary-level test is used for this tip restriction.[1] | TennesseeManagers and supervisors can't keep workers' tips or take pool shares. They keep only tips for service they alone provide. No salary test applies.[1] | State rule |
| Card fees from tipsSame as federal | FederalOnly the actual proportional credit-card transaction fee may be deducted from charged tips; no deduction exceeding that fee or reducing required minimum wages; state law may forbid even that deduction.[1] | TennesseeTip's share of the fee only[1] | Same as federal |
| Overtime for tipped staffState rule | FederalFor covered nonexempt employees, overtime generally begins after 40 hours in a workweek. Use the full regular rate, at least the full federal minimum wage, not $2.13; the hourly tip credit is not increased for overtime. Voluntary tips above the tip credit are excluded; distributed service charges enter the regular rate.[1] | TennesseeOvertime starts after 40 hours a week, figured from at least $7.25, not $2.13. The tip credit stays the same. Paid-out service charges count.[1] | State rule |
Every state starts from the same federal floor. Federal tip law baseline: the FLSA rules, rates and sources, and how Tennessee fits among the four tip credit classes.
Not covered here? Ask the Tennessee Department of Labor and Workforce Development, Labor Standards Unit at 844-224-5818 or on tn.gov/workforce/employees/labor-laws/labor-laws-redirect/wages-breaks.html.
04Wages
Minimum wage and the tip credit in Tennessee
Tennessee has no tipped wage of its own, so the federal rule applies: $2.13 cash, up to $5.12 from tips, $7.25 in total.[4][3]
One server, one slow 30-hour week in Tennessee
A busy week with $153.60 or more in tips needs no top-up. Every tip above that is the server's. Fictional worker and tips.
- Tip credit conditions
- Give the federal tip-credit notice first. Cash wage plus tips must reach minimum wage and overtime each week, or the employer pays the gap.[1]
- Who counts as tipped
- Federal test: more than $30 a month in tips, in a job where tips are customary.[1]
- Overtime
- Overtime starts after 40 hours a week, figured from at least $7.25, not $2.13. The tip credit stays the same. Paid-out service charges count.[1]
Other rates
| Rate | Hourly |
|---|---|
| Tier FLSA covered nonexempt employeesCovered nonexempt employees; higher state, local or industry rates may apply. Since .[1][9] | $7.25 |
| Youth or training Federal youth opportunity wageUnder 20, first 90 consecutive calendar days after initial employment; nondisplacement limits apply.[10] | $4.25 |
Scheduled increases
No statewide increase with a published amount is on file as of .
06Tip pool
Who can be in the tip pool in Tennessee
Tennessee allows tip pools, and employers can make them mandatory. Owners, managers and supervisors can't share in them. A tip pool collects tips and splits them among staff; a tip-out is one worker handing part of their tips to others.
| Role | Can share? | Condition |
|---|---|---|
| Front of house | ||
| Server | Allowed | Traditional pools are for jobs that usually get tips. Non-tipped roles need full minimum wage with no tip credit. No managers.[1] |
| Bartender | Allowed | Traditional pools are for jobs that usually get tips. Non-tipped roles need full minimum wage with no tip credit. No managers.[1] |
| Busser | Allowed | Traditional pools are for jobs that usually get tips. Non-tipped roles need full minimum wage with no tip credit. No managers.[1] |
| Food runner | Depends | Traditional pools are for jobs that usually get tips. Non-tipped roles need full minimum wage with no tip credit. No managers.[1] |
| Host | Depends | Traditional pools are for jobs that usually get tips. Non-tipped roles need full minimum wage with no tip credit. No managers.[1] |
| Barback | Depends | Traditional pools are for jobs that usually get tips. Non-tipped roles need full minimum wage with no tip credit. No managers.[1] |
| Expo | Depends | Traditional pools are for jobs that usually get tips. Non-tipped roles need full minimum wage with no tip credit. No managers.[1] |
| Back of house | ||
| Cook | Depends | Only in a pool where everyone gets at least $7.25 in cash and no tip credit is taken. No managers.[1] |
| Dishwasher | Depends | Only in a pool where everyone gets at least $7.25 in cash and no tip credit is taken. No managers.[1] |
| Leadership | ||
| Shift lead | Depends | Traditional pools are for jobs that usually get tips. Non-tipped roles need full minimum wage with no tip credit. No managers.[1] |
| Manager or supervisor | Not allowed | Can't take pooled tips. Actual duties and ownership decide, not job titles.[1] |
| Owner | Not allowed | Can't take pooled tips. Actual duties and ownership decide, not job titles.[1] |
- Managers and supervisors
- Managers and supervisors can't keep workers' tips or take pool shares. They keep only tips for service they alone provide. No salary test applies.[1]
- Owners
- An owner with 20% or more equity who actively manages counts as a manager. No employer may keep workers' tips.[1]
- Who sets the percentages
- The employer can set a mandatory pool. With a tip credit, it must tell workers how much they have to contribute.[1]
- Cap on what a pool can take
- No federal cap on pool percentages. Eligibility, notice and minimum wage rules still apply.[1]
- Pooling allowed
- Yes. Federal rules for voluntary tips. Tennessee's automatic-charge statute is a separate question; its current text wasn't confirmed.[1]
Not covered here? Ask the Tennessee Department of Labor and Workforce Development, Labor Standards Unit at 844-224-5818 or on tn.gov/workforce/employees/labor-laws/labor-laws-redirect/wages-breaks.html.
07Put it to work
Setting up a tip pool in Tennessee
Under Tennessee rules, 6 of the 10 staff in this example can share a $1,200 pool. The table splits the same pool by percentage, by points and by hours.
| Who | By % | By points | By hours |
|---|---|---|---|
| Maya | $268.29 | $250.00 | $211.78 |
| Jordan | $268.29 | $250.00 | $211.76 |
| Priya | $268.29 | $250.00 | $211.76 |
| Sam | $175.61 | $200.00 | $211.76 |
| Luis | $109.76 | $125.00 | $176.47 |
| Ava | $109.76 | $125.00 | $176.47 |
| Theo | Not in the pool. Out here: this pool includes servers paid with a tip credit. | ||
| Kim | Not in the pool. Out here: this pool includes servers paid with a tip credit. | ||
| Rafa | Not in the pool. Out here: this pool includes servers paid with a tip credit. | ||
| Dana | Not in the pool. Can't take pooled tips. | ||
| Total | $1,200.00 | $1,200.00 | $1,200.00 |
Fictional restaurant and staff. The guest-facing staff here are assumed to meet Tennessee's condition for sharing (see who can be in the tip pool, above). Percentages and point weights are examples, not a recommendation. Shares are rounded to the cent, and any leftover cent goes to the first server. Run your own numbers in the tip pooling calculator.
Ferry Tip Manager: support pool split by hours
Servers and bartenders pay into the support pool, and Tip Manager splits it by hours worked. Each person sees their share, with no spreadsheet at close.
Who it's for Full-service restaurants that tip out bussers, runners and bar backs
08Service charges
Service charges vs tips in Tennessee
A tip is the guest's choice. A service charge is set by the business, and that difference decides who owns the money and how it's taxed.
| Question | OptionalTip | MandatoryService charge |
|---|---|---|
| Who sets the amount | The guest | The business |
| Can it go to staff? | Yes, through the pool | Yes. Amounts paid to staff are wages, not tips.[1] |
| How it's taxed (federal) | Tip income the worker reports | Regular wages, with payroll taxes[11][12] |
- Step 1Did the guest choose whether to pay it, and how much?YesIt's a tip. It belongs to staff.NoIt's a mandatory charge. Go to step 2.
- Step 2What does Tennessee say?No Tennessee rule on file. Federally, a required service charge isn't a tip. Amounts paid to staff are wages.[1]
- Step 3Check the cityNo city service charge rules on file for Tennessee.
- Large-party auto gratuities
- For federal tax purposes, an automatic gratuity is a service charge, not a tip, even when staff get it. The label doesn't change that.[11][12]
Local service charge rules
No local service charge rules on file for Tennessee.
More on the difference: service charge vs tip.
Not covered here? Ask the Tennessee Department of Labor and Workforce Development, Labor Standards Unit at 844-224-5818 or on tn.gov/workforce/employees/labor-laws/labor-laws-redirect/wages-breaks.html.
09Card tips
Card tips in Tennessee: fees and payout timing
In Tennessee only the tip's share of the card processing fee can come out of a card tip.
Only the actual card fee on the tip can come out, never pushing pay below minimum. That doesn't extend to protected automatic charges.[1]
When card tips have to land
- TonightGuest adds a tip On the card, at the table.
- CloseShift is tallied The pool is split by your rules.
- Last dayFinal pay The next regular payday or 21 days after leaving, whichever is later. Since July 1, 2026, piece-work or commission pay is due by next month-end.[5]
Paydays: Pay at least monthly. Monthly wages are due by the 5th of the next month. Piece-work and commission rules changed in July 2026.[13][5]
Paying tips on a payroll card
- Allowed?YesOffer electronic transfer, disclose card fees and give free access. Federal payment-choice and prepaid-card rules also apply.[6]
- Worker consent needed?DependsA disclosed card can be the default if the worker names no bank account. Federal law protects the worker's choice of bank.[6]
- Free way to get the money?State ruleAt least one free withdrawal or transfer each pay period, for any amount on the card, plus written disclosure of every fee.[6]
- Must you offer another option?YesOffer electronic transfer to the worker's chosen account. Federal Regulation E also applies.[6]
- Holding cash tipsState ruleThe employer can collect tips to run a valid pool, then pay them out by payday. No broader right to hold cash tips was found.[1]
Ferry Pay: each tip share, paid out digitally
Each person's direct tips, tip outs and payable amount in one view, then paid through Ferry Pay. No cash to keep on hand for payouts. Eligibility and fees apply.
Who it's for Operators who want to stop the nightly cash run
“Since launching this card program, we've reduced our cash-carrying costs by over 66 percent”
Not covered here? Ask the Tennessee Department of Labor and Workforce Development, Labor Standards Unit at 844-224-5818 or on tn.gov/workforce/employees/labor-laws/labor-laws-redirect/wages-breaks.html.
10Records
Records and notices in Tennessee
Keep each tipped worker's tips and hours on record, shift by shift. Tennessee: payroll records: three years.
Tennessee State
- Tip records Keep identity, hours and pay records. Tip-credit employers also track tips and credit taken. Pools without a tip credit track each recipient's tips.[1]
- How long to keep them Payroll records: three years. Wage-calculation records: two years. Tax records follow separate rules.[14]
- Tip credit notice Required. Tell workers the cash wage, the credit amount, that credit can't exceed tips, and that tips are theirs. Pool contributions too.[1]
- Posters and forms FLSA minimum wage poster; Tennessee Wage Regulations and Child Labor poster; regular payday notice in two conspicuous places.[14][15]
Everywhere Federal
- Tip records Maintain employee identity, time and pay records. Tip-credit employers additionally retain tipped employee, reported tips, credit amounts and hours/earnings by tipped and nontipped occupation. No-tip-credit employers operating mandatory pools record each recipient and weekly/monthly tips. IRS daily records/reporting are separate obligations.[1]
- How long to keep them FLSA: payroll records at least three years; underlying wage-computation records two years. Tax retention is separate.[14]
- Tip credit notice Oral or written notice must state cash wage; tip credit amount; credit cannot exceed actual tips; employee retains tips except valid traditional pool; credit unavailable until informed. Traditional pool contribution amounts also disclosed.[1]
- A written pool policy Good practice, not a federal rule: who's in, how it splits, when it pays. Share it with staff. How to write one.
Think your tips were handled wrong in Tennessee?
Workers in Tennessee can file a tip or wage claim with the Tennessee Department of Labor and Workforce Development, Labor Standards Unit (844-224-5818). Filing is free, and this page can't settle a dispute; the state can.[17]
Retaliation: Federal law bars punishing workers for wage complaints, spoken or written, even outside FLSA wage coverage. Reinstatement, lost wages and damages may follow.[16]
Can they take this out of my tips?
- Walkouts and dine-and-dashNot allowedTips can't cover the employer's losses. Other wage-deduction rules may apply too.[1]
- BreakageNot allowedTips can't cover the employer's losses. Other wage-deduction rules may apply too.[1]
- Register shortagesNot allowedTips can't cover the employer's losses. Other wage-deduction rules may apply too.[1]
- UniformsNot allowedTips can't pay for uniforms. Other wage-deduction rules may apply too.[1]
- Card processing feesAllowedOnly the actual card fee, and never below required wages. Stricter state rules may apply.[1]
- A manager's shareNot allowedEmployers, managers and supervisors can't take pool shares.[1]
Not covered here? Ask the Tennessee Department of Labor and Workforce Development, Labor Standards Unit at 844-224-5818 or on tn.gov/workforce/employees/labor-laws/labor-laws-redirect/wages-breaks.html.
11Law changes
What changed in Tennessee tip law, and what's coming
No statewide increase with a published amount is on file for Tennessee as of . Most recent change: Piece-work and commission pay deadlines changed; hourly final-pay rule remains later of next regular payday or 21 days ().
- ChangedPiece-work and commission pay deadlines changed; hourly final-pay rule remains later of next regular payday or 21 days.[5]
Key statutes
- 29 U.S.C. § 203(m)(2), (t)
- 29 CFR §§ 531.52, 531.54, 531.56(e), 531.60
- IRS Rev. Rul. 2012-18
- Tenn. Code section 50-2-103(e)
- Tenn. Code section 50-2-103(g), amended 2026
- Tenn. Code section 50-2-112
- Tenn. Code section 50-2-109
Not covered here? Ask the Tennessee Department of Labor and Workforce Development, Labor Standards Unit at 844-224-5818 or on tn.gov/workforce/employees/labor-laws/labor-laws-redirect/wages-breaks.html.
12FAQ
Tennessee tip law questions
Plain answers to the 8 questions restaurant owners and staff ask most about Tennessee tip law, each linked to its source.
What is Tennessee's tipped minimum wage?
Can a Tennessee city set a higher minimum wage?
No. A 2023 state law preempts local wage and benefit mandates on private employers, unless state or federal law requires them.[2]
Can managers take money from a tip pool?
No. Federal law bars employers, managers and supervisors from taking pool shares. Actual duties decide who counts as a manager, not job titles.[1]
Can cooks and dishwashers share in tips?
Yes, under federal rules, in a pool where everyone gets at least $7.25 an hour in cash and no tip credit is taken.[1]
When is a final paycheck due?
By the next regular payday or 21 days after leaving, whichever comes later. Since July 1, 2026, piece-work and commission pay is due by the end of the following month.[5]
Can an employer pay wages on a pay card?
Yes, with conditions. The employer has to offer electronic transfer, disclose every card fee in writing and allow at least one free withdrawal or transfer each pay period.[6]
How does a worker start a wage claim?
Submit the online complaint, then fill out, sign and return the wage-claim statement to the assigned inspector. The online form alone doesn't start the investigation.[17]
13Compare
How Tennessee compares with nearby states
Tennessee borders Alabama, Arkansas, Georgia, Kentucky, Mississippi, Missouri, North Carolina and Virginia. Arkansas, Missouri and Virginia pay a higher minimum wage than Tennessee's $7.25. Running locations on both sides of a line? Each one follows its own state's rules.
Neighboring states
- Alabama tip laws$7.25 min wage Federal $2.13 cash wage Federal
- Arkansas tip laws$11.00 min wage $2.63 tipped cash wage Above $2.13
- Georgia tip laws$7.25 min wage Federal $2.13 cash wage Federal
- Kentucky tip laws$7.25 min wage $2.13 tipped cash wage $2.13 cash
- Mississippi tip laws$7.25 min wage Federal $2.13 cash wage Federal
- Missouri tip laws$15.00 min wage $7.50 tipped cash wage Above $2.13
- North Carolina tip laws$7.25 min wage $2.13 tipped cash wage $2.13 cash
- Virginia tip laws$12.77 min wage $2.13 tipped cash wage $2.13 cash
States with the same rules
Same tip credit class as Tennessee: Federal rates apply.
- Louisiana tip laws$7.25 min wage Federal $2.13 cash wage Also runs on federal tip rules, and only the tip's share of card fees
- South Carolina tip laws$7.25 min wage Federal $2.13 cash wage Also runs on federal tip rules, and only the tip's share of card fees
- Wyoming tip laws$7.25 min wage Federal $2.13 cash wage Also runs on federal tip rules, and only the tip's share of card fees
The law decides who's in. Ferry runs the split.
See how operators set pool rules in Ferry Tip Manager and pay tips out without a cash run. Bring your own Tennessee setup.
14Sources
Sources for Tennessee tip laws
Every figure on this page links to one of these 18 sources: 15 for Tennessee and 3 for the federal baseline. They are statutes, regulations and government agency pages, each with the date it was checked.
- 1Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)U.S. Department of Labor · Official source · Checked Pinpoint: Tip Credit, paragraph 2www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa
What the source says
“An employer must pay a tipped worker at least $2.13 per hour under the FLSA.”
“the federal minimum wage, which is currently $7.25 per hour.”
“The maximum tip credit that an employer can currently claim is $5.12 per hour: ($7.25 - $2.13 direct (or cash) wage = $5.12).”
- 22023 Public Chapter 309: Local employment mandatesTennessee General Assembly · Official source · Checked Pinpoint: Section 3, section 50-2-112(a)(1)(A); Section 3publications.tnsosfiles.com/acts/113/pub/pc0309.pdf
What the source says
“Unless required by state or federal law, all additional wage or employment benefit mandates imposed on private employers by a local government are hereby preempted.”
“Section 50-2-112(a)(1)”
- 3Should I be paid minimum wage?Tennessee Department of Labor and Workforce Development · Official source · Checked lwdsupport.tn.gov/hc/en-us/articles/360000130587-Should-I-be-paid-minimum-wage
What the source says
“There are no state laws regulating minimum wage.”
- 4Minimum Wages for Tipped EmployeesU.S. Department of Labor · Official source · Page updated · Checked Pinpoint: Footnote 11www.dol.gov/agencies/whd/state/minimum-wage/tipped
What the source says
“The following states do not have state minimum wage laws: Alabama , Louisiana , Mississippi , South Carolina , and Tennessee .”
- 52026 Public Chapter 617: Payment deadlinesTennessee General Assembly · Official source · Checked Pinpoint: Section 1; Section 2, section 50-2-103(g); Section 3publications.tnsosfiles.com/acts/114/pub/pc0617.pdf
What the source says
“if an employee is employed on a piece-work or commission basis, then compensation earned is due and payable by the last day of the succeeding month.”
“no later than the next regular pay day following the date of dismissal or voluntary leaving, or twenty-one (21) days following the date of discharge or voluntary leaving, whichever occurs last;”
“This act takes effect July 1, 2026, the public welfare requiring it, and applies to wages and compensation earned on or after that date.”
- 62010 Public Chapter 874: Wage payment cardsTennessee General Assembly · Official source · Checked Pinpoint: Section 1, section 50-2-103(e)(1)(D); Section 1, section 50-2-103(e)(2)publications.tnsosfiles.com/acts/106/pub/pc0874.pdf
What the source says
“Credit to a prepaid debit card issued through a network system from which the employee is able to withdraw or transfer funds,”
“the employee does not designate an account at a financial institution in advance and as required by the employer for the payroll transfer to occur, then the employer may arrange to pay such employee by prepaid debit card”
“shall also give employees the choice of being paid by electronic transfer”
- 7Tip Regulations under the Fair Labor Standards Act (FLSA)U.S. Department of Labor · Official source · Checked Pinpoint: Regulatory History 2020-2024, item 3; Tip regulation topics listwww.dol.gov/agencies/whd/flsa/tips
What the source says
“a federal court vacated the revision, with the effect of reinstating the Department’s original dual jobs regulation.”
“29 CFR 531.56(e) ); and Calculating overtime pay for tipped employees ( 29 CFR 531.60 ).”
- 8Field Assistance Bulletin 2026-1U.S. Department of Labor · Official source · Page updated · Checked Pinpoint: p. 1, introductory paragraphswww.dol.gov/sites/dolgov/files/WHD/fab/fab2026-1.pdf
What the source says
“These withdrawn opinion letters and the FOH provision that implemented them should no longer be relied upon as WHD enforcement guidance.”
- 9History of Changes to the Minimum Wage Law, DOL WHDU.S. Department of Labor · Official source · Checked Pinpoint: 2007 amendments paragraphwww.dol.gov/agencies/whd/minimum-wage/history
What the source says
“The 2007 amendments increased the minimum wage to $5.85 per hour effective July 24, 2007; $6.55 per hour effective July 24, 2008; and $7.25 per hour effective July 24, 2009.”
- 10Fact Sheet #32: Youth Minimum Wage - Fair Labor Standards ActU.S. Department of Labor · Official source · Checked Pinpoint: youth minimum wage discussionwww.dol.gov/agencies/whd/fact-sheets/32-minimum-wage-youth
What the source says
“$4.25 an hour to employees who are under 20 years of age during the first 90 consecutive calendar days after initial employment.”
- 11Tip recordkeeping and reportingInternal Revenue Service · Official source · Checked Pinpoint: Service charges are not tips, paragraph 2; qualified tips deduction, net-income limit; tip income, Social Security/Medicarewww.irs.gov/businesses/small-businesses-self-employed/tip-recordkeeping-and-reporting
What the source says
“Service charges (also referred to as “auto-gratuities”), when distributed to an employee, are generally treated as wages paid by the employer to the employee rather than tips paid by the customer.”
“For self-employed individuals, the deduction may not exceed the individual’s net income (without regard to this deduction) from the trade or business in which the tips were earned.”
“These amounts are subject to federal income tax and generally are also subject to Social Security and Medicare taxes.”
- 12Revenue Ruling 2012-18Internal Revenue Service · Official source · Page updated 2012 · Checked Pinpoint: Q 1/A 1, four distinguishing factors; p. 1, ruling headingwww.irs.gov/pub/irs-drop/rr-12-18.pdf
What the source says
“compulsion; (2) the customer must have the unrestricted right to determine the amount; (3) the payment should not be the subject of negotiation or dictated by employer policy; and (4) generally, the customer has the right to determine who receives the payment.”
“Rev. Rul. 2012-18”
- 13Wages and BreaksTennessee Department of Labor and Workforce Development · Official source · Checked Pinpoint: Payday Regulations; employers with at least five employees; Page heading; Contactwww.tn.gov/workforce/employees/labor-laws/labor-laws-redirect/wages-breaks.html
What the source says
“Employees are required to be paid at least once per month.”
“Wages, Fringe Benefits, Paychecks & Breaks”
“Labor Standards Unit 844-224-5818”
- 14Fact Sheet #21: Recordkeeping Requirements under the Fair Labor Standards Act (FLSA)U.S. Department of Labor · Official source · Page updated · Checked Pinpoint: Posting, paragraph 1www.dol.gov/agencies/whd/fact-sheets/21-flsa-recordkeeping
What the source says
“Each employer shall preserve for at least three years payroll records, collective bargaining agreements, sales and purchase records.”
“Employers must display an official poster outlining the provisions of the Act, available at no cost from local offices of the Wage and Hour Division and toll-free, by calling 1-866-4USWage (1-866-487-9243).”
“Records on which wage computations are based should be retained for two years,”
- 15Wage Regulations and Child Labor PosterTennessee Department of Labor and Workforce Development · Official source · Checked Pinpoint: Wage Regulations Act panelwww.tn.gov/content/dam/tn/workforce/documents/majorpublications/requiredposters/Wage_Poster.pdf
What the source says
“Notice of regular paydays shall be posted by each employer in at least two conspicuous places.”
- 16Fact Sheet # 77A: Prohibiting Retaliation Under the Fair Labor Standards Act (FLSA)U.S. Department of Labor · Official source · Checked Pinpoint: FS77A Coverage; Prohibitions; Remedieswww.dol.gov/agencies/whd/fact-sheets/77a-flsa-prohibiting-retaliation
What the source says
“the protection applies to all employees of an employer even in those instances in which the employee’s work and the employer are not covered by the FLSA.”
- 17How to Begin a Wage ClaimTennessee Department of Labor and Workforce Development · Official source · Checked Pinpoint: Heading; Wage Claim Process, signed statement after initial online complaint; Wage Claim Processwww.tn.gov/workforce/employees/labor-laws/labor-laws-redirect/wages-breaks/wcf.html
What the source says
“Labor Standards Unit”
“You must mail or email it back to the Inspector shown at the top of the form to initiate an investigation.”
“the claim is then forwarded to the Central Office for review and possible penalty assessment.”
- 18HB 1399, 114th General Assembly statusTennessee General Assembly · Official source · Checked Pinpoint: Bill History, HB 1399wapp.capitol.tn.gov/apps/BillInfo/Default?BillNumber=HB1399&ga=114
What the source says
“Failed for lack of second in: Banking & Consumer Affairs Subcommittee 02/11/2026”
15Methodology
How we research these pages
Every figure on this page comes from an official source, a statute, a regulation or a government agency page, and links to it where it is used. Ferry checks the page against those sources on a schedule and logs every change.
- 1
Official sources only
Statutes, regulations, state labor agencies, city ordinances and the U.S. Department of Labor. No vendor blogs, no AI answers, no secondary summaries as the only source.
- 2
Every figure is linked
Each rate and rule carries a numbered link to the statute or agency page behind it, with the exact pinpoint and, where available, a link that opens at the sentence itself.
- 3
Re-checked on a schedule
Every page is re-checked each January and July, and whenever a state or city changes a rate. Cash wage plus tip credit is checked against the minimum wage on every build.
- 4
Gaps are left out, not guessed
If a rule can't be confirmed from an official source, it isn't shown. The page points to the state agency instead.
What changed on this page
- First version of this page. Every figure was checked against the official sources listed on this page.
Researched by Ferry's tip operations research team. Last reviewed .
Changes to the law itself are listed in What changed and what's coming.
16Every state
Tip laws in every state
Pick any state for its tip credit, tip pool, service charge and card tip rules. Each chip shows the state's tip credit class.
- No tip creditNo tip credit
- Above $2.13Tip credit, cash wage above federal
- $2.13 cashTip credit, federal cash wage
- FederalFederal rates apply
51 of 51 state pages. Open the master guide for the federal baseline, tip credit classes and the full comparison table.