Tennessee has decided to enact legislation defending workers from abusive employers. Protections regarding the frequency and format of paychecks issued to employees for completed work are included in these statutes.
When paying employees their salaries, Tennessee has several regulations that employers must adhere to.
The Tennessee wage payment statute outlines the majority of these criteria. Employers must maintain consistent paydays and provide written notices of these paydays posted in at least two locations around the workplace.
Additionally, Tennessee paycheck laws state that employers must pay workers at least twice every month.
In more detail, an employer must pay all wages earned during the first half of the month by the fifth of the next month and all earnings earned during the second half of the month by the twentieth of the following month.
The third requirement is that an employer must pay the final salary of any employee who resigns or is fired within 21 days of the termination date or the next regularly scheduled payday, whichever comes later.
Employers who don’t pay workers on time may be punished with a class B misdemeanor and fined $100 to $500, or the Tennessee Department of Labor and Workforce Development commissioner may impose civil penalties of $500 to $1,000.
Each transgression is a distinct offense that carries different punishments for the employer.
As an illustration, if an employer does not pay an employee’s last wages within 21 days, they may be subject to separate civil penalties for both failing to pay final wages and failing to pay wages on time by the fifth or twentieth day of the next month in which the wages were earned.
The Tennessee Department of Labor and Workforce Development’s Division of Labor Standards is in charge of enforcing the wage payment law. The law gives the department discretion over whether to impose punishment when a violation was made accidentally and how many penalties to impose based on whether the infringement was made intentionally.
In the past, the department has relied on this discretion to refrain from punishing businesses that promptly pay the disputed amount to the employee after being notified of a claim of failure to pay wages.
Recently, the department has made it clear that it intends to modify its current procedures and impose civil monetary fines for any technical infractions of the law, even in situations where the employer agrees to pay the employee the disputed wages.
If an employer withholds money from an employee’s final paycheck to settle for any debt owed to the employer, the department may take enforcement action against the employer. The employee “must be paid in full all pay and salary received by the employee,” according to the law.
Suppose deductions from any paycheck, including a final paycheck, reduce an employee’s compensation below the federal minimum wage for that pay period. In that case, the employer may also be subject to an investigation from the Department of Labor under the Fair Labor Standards Act.
The takeaway is clear: Always pay employees full and on time, including when they quit or are let go. The salaries in question for any given pay period are frequently a tiny portion of the possible civil fines.
When Must Paychecks Be Sent Out?
According to Tennessee law, all outstanding salaries and benefits must be paid to employees according to the following schedule.
Payday for wages and other benefits earned between the first and fifteenth of the month is the fifth day of the following month. For instance, pay for wages earned on January 3 must be made no later than February 5.
The 16th of the month to the end of the month’s earnings must be paid by the 20th of the following month. For instance, pay for wages earned on March 18 must be made by April 20 at the latest.
What Happens When Your Paycheck Is Late?
Employers who don’t pay workers on time may be punished with a class B misdemeanor and fined $100 to $500, or the Tennessee Department of Labor and Workforce Development commissioner may impose late paycheck penalties of $500 to $1,000.
You can file a labor complaint with the Tennessee Department of Labor and Workforce Development Division of Labor Standards if your employer owes you money for unpaid wages.
What Happens if You Are Fired?
No later than the next regularly scheduled payday after the termination of employment or within 21 days after the end of employment, whichever occurs latest, last payments (whether you quit or you were fired) must be paid in full.
The employee’s regular pay from the most recent pay period should be included in the last payment, along with any additional remuneration like commissions, bonuses, and accumulated sick and vacation time. If an employee owes your company money, the employer has the right to deduct that amount from their last salary.
The employment agreement, in general, governs whether further remuneration (such as unused vacation or holiday pay) must be paid out following the termination of employment.
The final paycheck can be paid via direct deposit (if the employee had previously allowed direct deposit for wages), cheque, or payroll pay card, either in person or by mail, because Tennessee does not have specific regulations on how to transmit final paychecks.
Can Your Paycheck Be Garnished?
Tennessee, like the majority of states, permits wage garnishment for a variety of reasons, including:
- Child support,
- Monies payable as a result of a civil case,
- Money owed as part of a fine imposed by a court, and
- Owing taxes
Additionally, if your employment contract permits it, your employer may be able to stop paying you until you return company property like uniforms or tools.
Can You Recover a Withheld Paycheck?
When an employer fails to pay an employee the wages or salary they have committed to pay for the work performed by the employee, the salary is withheld. For instance, a business could completely forgo issuing a paycheck to an employee and instead choose to withhold one. A second possibility is that an employer will underpay an employee for the hours they worked.
Making unauthorized withholdings from a paycheck that brings the salary below the minimum wage is another way of withholding money from employees. For instance, if the employer mandates that the employee wear a uniform while at work, the employee may deduct the cost of the clothing. The deductions may be unlawful if they result in an hourly wage that is less than the federal minimum wage.
You are entitled to compensation for improperly withheld paychecks. An employee’s capacity to make ends meet and maintain a family may be negatively impacted by an employer’s illegal withholding of pay. Your best chance of recovering improperly withheld pay may be to speak with an attorney and file a claim in civil court.
Although an employer might be able to deduct the equipment’s cost from non-exempt workers’ last pay, they typically cannot withhold unpaid wages from former workers. Before taking any steps to hold a final payment, be sure to speak with legal counsel since failure to do so could result in fines and penalties.
Where Can You Find the Right Lawyer?
If you are having any issues related to your paycheck in Tennessee, you should contact a qualified Tennessee employment lawyer, especially if you think your employer has acted improperly.
Paying you your wages is an issue that is governed by state and federal laws and regulations. All of the rules are extensive and their interaction is complex.
If your employer has not paid you in full for your work, you may be able to be compensated for those wages, your employer may face penalties, and you may also be entitled to attorney’s fees. You may have a claim for unpaid wages if your employer failed to pay you under certain circumstances, but these are not always clear.
For example, if you receive tips or commissions, it may change the nature of your claim. This is why it is so important to have a lawyer who can help you determine whether or not your employer’s conduct violates state or federal laws.
You have rights to be paid for your work, and an experienced attorney can fight to defend you and your loved ones. Having an attorney handle your claim will give you the best possible chance at receiving compensation for your work and successfully filing any claims you are required to with federal agencies.
