If you are planning to buy or start a new business in Tennessee due to the small business opportunities the state has to offer, or just simply considering moving to and finding a job in Tennessee, you will need to be aware of the details surrounding the tipped minimum wage in the Volunteer State. You can prevent costly legal battles down the line. By increasing the minimum wage, youll help prevent the state from falling into the dreaded poverty wage bracket. If you earn more then the Tennessee minimum wage rate, you are entitled to at least 1.5 times your regular hourly wage for all overtime worked. Because most employers and employees in Tennessee are subject to the federal Fair Labor Standards Act, the standards for wage rates for trainees set forth in that law typically apply. The Bureau of Labor Statistics says about 4% of Tennessee's workforce was paid the minimum hourly rate in 2020. If the bill passes, this would end up costing the state government, as the state has more than 1,300 employees that would have their wage increased. The new law will make it a requirement for employers to pay at least $7.25 an hour, with certain exemptions for students, the elderly, and those with disabilities. Our previous post The Portland Minimum Wage Will Increase 2023 We recommend that you also read our article titled. State institutions like the UT system would also have to spend money to bring workers up to the new hourly wage. However, one cannot deny that it can also potentially lead to a rise in unemployment or full-time employees suddenly becoming temporary employees. Most of these increases occur around January 1st. Hospitality workers, including restaurant, bar, cafe, hotel, cruise, bellhop, and other service provider employees usually are aware that they will be paid a small hourly wage, which is heavily supplemented through the addition of tips paid by customers. Although the federal minimum wage is higher, each state can set its own minimum wage. Kansas City Crime Family, Articles T