Tennessee tip pooling laws & tipped minimum wage
In Tennessee, employers can pay tipped workers $2.13/hr as long as tips bring them to the $7.25 minimum — here's how that works and who can legally share your tips.
| Regular minimum wage | $7.25/hr |
| Minimum cash wage for tipped workers | $2.13/hr |
| Maximum tip credit | $5.12/hr |
| Tips belong to | Employees — always |
A tip credit lets an employer count your tips toward the minimum wage it owes you. Rates reviewed July 2026. Rates change — confirm with the Tennessee labor department. Not legal advice.
What's specific to Tennessee
Tennessee has no state minimum wage law; federal FLSA rules apply directly.
Tennessee sets no minimum wage, so the federal rate governs
Tennessee has no state minimum-wage law. With no state floor to apply, covered employers follow the federal Fair Labor Standards Act: at least $7.25 an hour, with a tipped cash wage of $2.13 and a tip credit of up to $5.12 when tips make up the difference.
Because there is no state wage statute, a tipped worker’s core protections are federal. The U.S. Department of Labor’s Wage and Hour Division is where an unpaid-wages complaint over the tip credit is filed.
Tennessee law blocks cities from setting a higher wage — or added benefits
Tennessee Code Section 50-2-112 goes beyond wages: it bars local governments from requiring private employers to pay more than the federal or state minimum wage, and also from mandating other employment benefits. So no Tennessee city or county can lift the tipped cash wage above $2.13.
The result is a single statewide standard. Memphis, Nashville, Knoxville, and Chattanooga all operate under the same $2.13 tipped cash wage and $7.25 floor.
Tip pooling in Tennessee
Tennessee follows the federal baseline: employers may require tip pooling. If your employer takes the tip credit (pays $2.13/hr cash), the pool may only include customarily tipped workers — servers, bussers, bartenders, runners, hosts. Back-of-house can only be included if everyone is paid full minimum wage with no tip credit. Managers and supervisors are always excluded.
One federal rule applies everywhere: managers and supervisors can never take from a tip pool. Separately, credit card processing fees may only be deducted from tips where state law allows it.
What this means for your tip-out
Because part of your legal wage in Tennessee comes from tips, the employer's tip credit assumes those tips reached you. Use the tip-out calculator to split a shift by your house's percentages or by hours, and see standard tip-out percentages to check whether your house's rates are typical.
Tennessee tip law FAQs
What is the tipped minimum wage in Tennessee?
Employers in Tennessee may pay tipped employees a cash wage of $2.13/hr and claim a tip credit of up to $5.12/hr toward the $7.25 minimum wage. If tips don't close the gap in a workweek, the employer must make up the difference.
Is mandatory tip pooling legal in Tennessee?
Tennessee follows the federal baseline: employers may require tip pooling. If your employer takes the tip credit (pays $2.13/hr cash), the pool may only include customarily tipped workers — servers, bussers, bartenders, runners, hosts. Back-of-house can only be included if everyone is paid full minimum wage with no tip credit. Managers and supervisors are always excluded.
Can my manager take a share of the tip pool in Tennessee?
No. Federal law prohibits managers, supervisors, and owners from keeping any portion of employee tips in every state, including Tennessee. A manager may keep only tips they directly and solely earned (e.g., a table they personally served start to finish).
Does Tennessee have a state tipped minimum wage?
No. Tennessee has no state minimum-wage law, so the federal tipped cash wage of $2.13, the $5.12 tip credit, and the $7.25 combined floor apply throughout the state.
Can a Tennessee city require a higher wage for tipped workers?
No. Tennessee Code Section 50-2-112 prevents local governments from requiring private employers to pay above the federal or state minimum wage, so the $2.13 tipped cash wage is the same statewide.