Purpose: I am not an attorney and do not purport to be giving any legal advise. Below is a summary of some of the Tennessee state labor laws
that the company I work for regularly violates. I cannot name the company as they have threatened to sue anyone who posts online
about them and I can not afford an attorney. I post these here in hopes that it may help someone else in the same position.
The full code can be found here.
50-2-101. Prospective employee to be informed as to wages -- Exceptions.
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Employee Pay Rate
Summary: A company can not change an employee's rate of pay without first telling the employee of the change.
The employee must be informed of any reduction in pay before the new rate takes effect.
Tennessee Code Title 50-2-101 Section (b)
(a) As used in this section, "workshops and factories" includes manufacturing, mills, mechanical, electrical, mercantile, art,
and laundering establishments, printing, telegraph, and telephone offices, department stores, or any kind of establishment where
labor is employed or machinery is used; provided, that domestic service and agricultural pursuits are excluded.
(b) It is unlawful for any proprietor, foreman, owner or other person to employ, permit or suffer to work for hire, in, about, or
in connection with any workshop or factory any person whatsoever without first informing the employee of the amount of wages to be
paid for the labor. The amount agreed upon between employer and employee, or employee representative, shall constitute a basis for
litigation in civil cases. This does not apply to farm labor. Nothing in this section shall apply to railroad companies engaged in
interstate commerce and subject to the federal Railway Labor Act, compiled in 45 U.S.C. § 151 et seq.
(c) (1) The failure on the part of any proprietor, foreman, owner or other person in charge of any industry named in subsection (a)
to inform any employee of the wages to be paid as provided in this section is a Class C misdemeanor.
(2) Nothing in this section shall be so construed to preclude the employment of any person or persons on a piece-work basis or on
a commission basis.
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50-2-103. Payment of employees in private employments.
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Payroll Distribution: Prepaid Debit Cards
Summary: In the state of Tennessee, if a company chooses to pay it's employees by prepaid debit card, the company must also give the employee the option of
Direct Deposit.
Tennessee Code Title 50-2-103 Section (e)(2)
(e) (1) The payment of wages or compensation of employees in the employments defined in this section shall be made as follows:
(C) Electronic automated fund transfer in lawful money of the United States; or
(D) Credit to a prepaid debit card issued through a network system from which the employee is able to withdraw or transfer funds, subject to the limitations contained in subdivisions (e)(2) and (3).
(2) An employer who chooses to compensate its employees using prepaid debit cards under subdivision (e)(1)(D) shall also give employees the choice of being paid by electronic transfer under subdivision (e)(1)(C). If after the employer has explained this system to an employee and provided full written disclosure of any applicable fees associated with the prepaid debit card and the employee does not designate an account at a financial institution in advance and as required by the employer for the payroll transfer to occur, then the employer may arrange to pay such employee by prepaid debit card pursuant to subdivision (e)(1)(D).
(3) If an employer pays its employees their wages on a prepaid debit card pursuant to subdivision (e)(1)(D), then such employer shall insure that each employee shall have the ability to make at least one (1) withdrawal or transfer from the prepaid debit card per pay period without cost to the employee for any amount contained on the card.
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Payment of Final Paycheck
Summary: A company can not hold an employee's final paycheck for any reason. This includes holding the pay until uniforms, etc, have been returned.
Tennessee Code Title 50-2-103 Section (g)
(g) Any employee who leaves or is discharged from employment shall be paid in full all wages or salary earned by the employee
no later than the next regular pay day following the date of dismissal or voluntary leaving, or twenty-one (21) days following
the date of discharge or voluntary leaving, whichever occurs last. No employer shall, by any means, secure an exemption from
this subsection (g).
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30 Minute Breaks
Summary: If an amployee works more than six (6) hours in a single shift, the employer must give the employee a 30 minute, unpaid break.
Shorter, paid breaks can not be substituted for the 30 minute break.
Tennessee Code Title 50-2-103 Section (h)
(h) Each employee shall have a thirty-minute unpaid rest break or meal period if scheduled to work six (6) hours consecutively,
except in workplace environments that by their nature of business provide for ample opportunity to rest or take an appropriate break.
The break shall not be scheduled during or before the first hour of scheduled work activity.
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50-2-107. Distribution of service charges or gratuities.
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Collection of Service Charges
Summary: This law states that a company can not charge a fee to the customer that is customarily expected to go to the employee and then keep
the fee without paying the fee to the employee. I believe this applies to delivery fees charged for the delivery of food. I contacted
the TN Dept. of Labor and was told that the company can keep any fees that they please as long as the employee receives a tip from the customer.
I do not believe that is what the law says. Failure to pay this fee, in addition to tip credits and inadequate reimbursement to employees
can cause employees who must provide their own vehicle to be paid below the federal minimum wage.
Tennessee Code Title 50-2-107 Section (a)(1)
(a) (1) If a business, including a private club, lounge, bar or restaurant, includes on the bill presented to and paid by a customer, member or patron an automatic percentage or specific dollar amount denominated as a service charge, tip, gratuity, or otherwise, which amount is customarily assumed to be intended for the employee or employees who have served the customer, member or patron, that amount shall be paid over to or distributed among the employee or employees who have rendered that service. The payment shall be made at the close of business on the day the amount is received or at the time the employee is regularly paid, or, in the case of a bill for which credit is extended to a customer, member or patron, payment shall be made at the close of business on the day the amount is collected or on the first day the employee is regularly paid occurring after the amount is collected.
(2) The payment shall not be reduced, docked or otherwise diminished to penalize an employee for any actions in connection with the employee's employment, if it is derived from a mandatory service charge or tip collected from customers, members or patrons.
(3) This section does not apply to bills for food or beverage served in a banquet, convention or meeting facility segregated from the public-at-large, except banquet, convention or meeting facilities that are on the premises of a private club.
(b) A violation of this section is a Class C misdemeanor. Each failure to pay an employee constitutes a separate offense.
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