Nonexempt Salary Laws in Tennessee
The Tennessee Department of Labor and Workforce Development is the agency authorized to enforce and interpret the state's labor laws. Federal labor laws are under the jurisdiction of the United States Department of Labor. Whether an employee in Tennessee is paid hourly or receives a fixed salary, employers must abide by certain labor laws. Adherence to the labor laws is especially important when dealing with salaried employees, because nonexempt salaried employees are subject to labor laws on overtime and minimum wage. If no Tennessee statute exists, employers should follow the applicable federal labor law. If Tennessee labor laws conflict with federal statutes, employers should follow whichever law is more beneficial to the employee.
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Breaks
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Federal labor statutes do not address the issue of breaks for employees. However, Tennessee labor law requires employers to provide at least a 30-minute break for nonexempt and exempt employees scheduled for six or more consecutive hours of work. The state law allows an exemption for work environments in which the employee has "ample opportunity" to take a break or rest. Federal law forbids employers from deducting for breaks of 20 minutes or less in duration, and also requires that the employee be relieved of all duties during his lunch break if the employer deducts the time.
Paydays
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Tennessee laws require private employers to issue paychecks at least twice each month. The employer must post a notice of scheduled paydays in two or more conspicuous locations in the workplace.
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Overtime
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Tennessee defers to the federal labor laws contained in the Fair Labor Standards Act on the issue of overtime. The FLSA requires employers to pay "time-and-a-half" for all time in excess of 40 hours that a nonexempt employee works during a workweek. The overtime rate for a salaried-nonexempt employee is his weekly salary divided by the number of hours covered by that salary. For instance, if the weekly salary is $400 for an employee whose regular schedule provides 40 hours of work, the regular hourly rate is $10 and his overtime rate is $15.
Classifying Employees as Exempt or Nonexempt
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When determining whether an employee meets the requirements for a salaried-exempt employee, Tennessee employers should refer to the FLSA, because Tennessee labor laws do not address the issue. Under the FLSA, exempt employees must perform specific job tasks and receive a minimum fixed salary of $455 per week. Exempt employees must be white-collar workers, such as managers, licensed professionals or administrators. Employees whose regular job duties involve manual labor, such as working on a production line, or who have no authority to make important decisions, such as a file clerk, are nonexempt. A nonexempt employee must receive an average hourly rate that is at least the minimum wage. A salaried-nonexempt employee has no limitations on the type of work he may perform.
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