Payment of Wages: Tennessee

Federal law and guidance on this subject should be reviewed together with this section.

Author: Vicki M. Lambert, The Payroll Advisor

Summary

• Employers in Tennessee can pay employees in cash, by check, direct deposit or electronic paycard. Certain requirements must be met before an employer can pay employees by paycard. See Wage Payment Methods.
• Tennessee employers that have at least five employees must pay wages at least monthly. More frequent pay periods are permitted. Different lag time requirements apply depending on whether the wages are paid monthly or in two or more pay periods per month. See Pay Frequency.
• With employees' written consent, Tennessee law allows employers to make certain deductions from employees' pay. See Permitted and Prohibited Wage Deductions.
• Tennessee law does not require employers to provide pay statements to employees. See Pay Statement Requirements.
• Employers in certain industries must notify newly hired employees of the amount of wages they will be paid before they begin work. Notices of regular paydays must be posted in the workplace. See Employee Notification Requirements.
• In Tennessee, a terminating employee must be paid final wages by the later of the next regular payday or 21 days following the termination. See Final Pay.
• After the death of an employee, an employer must follow specific procedures to properly pay any compensation owed to the deceased employee's estate or survivors. See Deceased Employee Wages.
• Unclaimed wages are considered abandoned property after one year. Employers must file an annual report of unclaimed wages with the state and notify affected employees. Penalties are imposed for noncompliance. See Unclaimed Wages.