Staying compliant with labor laws in your Tennessee casual dining restaurant is tough. Rules change often. Mistakes can cost you money. Protect your business and your team by staying informed.
This guide explains Tennessee’s labor rules for casual dining. We cover minimum wage, tips, overtime, and more. Lavu helps you understand these rules.
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Minimum Wage
Current rate: $7.25 per hour (effective July 24, 2009)
Future changes: No state-specific increases are currently scheduled for Tennessee.
- Tennessee follows the federal minimum wage standard.
- Employers must pay at least $7.25 per hour.
- This rate applies to most employees in casual dining.
Tipped Employees
Tip credit allowed: Yes
Minimum cash wage: $2.13 per hour
Employers can require tip pooling among regularly tipped employees. Managers or owners cannot join tip pools. Back-of-house staff can participate. The employer must pay them at least minimum wage directly, without a tip credit.
- Employers must pay a cash wage of at least $2.13 per hour.
- The employer must ensure the employee’s direct wage plus tips equals at least the federal minimum wage ($7.25).
- Employees must retain all tips, except for valid tip pooling arrangements.
- Employers must inform employees of the tip credit provision before using it.
- Maintain accurate records of all tips received by employees.
Compliance Checklist
Verify all employees earn at least $7.25 per hour.
Ensure tipped employees’ wages plus tips meet minimum wage.
Calculate and pay overtime correctly for hours over 40 weekly.
Display all required state and federal labor law posters.
Keep accurate timekeeping records for all shifts and breaks.
Provide reasonable break time and a private space for nursing mothers.
Review and update tip pooling policies to comply with federal law.
Verify child labor law compliance for all minor employees.
Issue final paychecks according to Tennessee’s wage payment law.
Regularly train staff on anti-discrimination and harassment policies.
Keep employee personnel and payroll records for at least three years.
Frequently Asked Questions
Does Tennessee have its own state minimum wage?
No, Tennessee does not have a state minimum wage. It follows the federal minimum wage of $7.25 per hour.
Can I pay my tipped casual dining staff less than $7.25 per hour?
Yes, you can pay a cash wage of $2.13 per hour. Their tips must bring their total earnings to at least $7.25 per hour.
Are managers allowed to participate in tip pools in Tennessee?
No, managers and owners cannot join tip pools. Tips are only for customarily and regularly tipped employees.
When do casual dining employees in Tennessee qualify for overtime?
Employees qualify for overtime when they work over 40 hours in a single workweek. They must receive 1.5 times their regular rate of pay.
Are meal breaks required for adult restaurant employees in Tennessee?
No, Tennessee law does not require meal or rest breaks for adult employees. Any breaks offered often come from company policy.
Do I need to provide breaks for nursing mothers in my Tennessee restaurant?
Yes, federal law requires reasonable break time and a private space for nursing mothers. This applies for one year after the child’s birth.
Does Tennessee have predictive scheduling laws for restaurants?
No, Tennessee has no state-specific predictive scheduling laws. Employers do not need to provide advance notice of schedules or pay ‘predictability pay’.
What are the rules for employing minors in a casual dining restaurant in TN?
Minors have strict limits on work hours, especially during school. They cannot perform certain hazardous tasks. Obtain proper work permits as required.
How quickly must I provide a final paycheck to a terminated employee?
You must pay a terminated employee on the next regular payday or within 21 days, whichever is later. Tennessee’s wage payment law outlines this.
What records should I keep for my casual dining employees regarding wages and hours?
You must keep accurate records for at least three years. Include hours worked, wage rates, gross wages, and any pay additions or deductions.
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