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Tennessee Compliance and Regulatory Resources

Business owners spend about 74 hours each year maintaining regulatory compliance1. Paychex strives to simplify HR compliance by giving businesses resources to navigate the complex landscape of state compliance. Learn more about regulations your business in Tennessee may need to comply with including minimum wage, workers’ compensation, and more.

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State Tax Rates and Limits

State Unemployment Taxable Wage Base Limit

State Unemployment Rate Range for Employers
0.01% to 10.0%

State Unemployment New Employer Rate
2.7% to 5.5% (Rates vary by industry)

State Hourly Minimum Wage

State Minimum Wage for Tipped Employees


Private employers with 35 or more employees must enroll in and use E-Verify.

  • Penalties: Could include per employee fines for not enrolling in E-Verify that escalate for repeat offenders for failure to verify.

Note to employers: Employers have requirements once enrolled in E-Verify, including but not limited to completion of Form I-9 and its verification (the Three Day Rule). Noncompliance could lead to significant civil fines. Some local municipalities also have E-Verify requirements.

Workplace Safety

Tennessee has an OSHA-approved state plan covering most private-sector workers and all state and local government workers. Federal OSHA covers most workers not covered under the state plan.

Workers' Compensation

  • Coverage is mandatory for employers with five (5) or more employees
  • LLC members and corporate officers are included in employee count provided they meet the definition of employee
  • Exception: All Contractors are required to have coverage regardless of the number of employees

Compliance Insights