A Tennessee employment contract establishes an employment relationship between an employer and a worker. An employment contract ensures both parties know what is expected of them, laying out the terms and conditions of employment, such as how much the employee will be paid by the employer, the hours they will work, and their job responsibilities.
In Tennessee, all contracts must contain mutual assent, a valid offer and acceptance, legality, and consideration [1] .
- Laws: Title 50
- Definition of Employee: According to Tenn. Code § 50-1-702, an employee is any individual for whom an employer must complete an I-9 Form pursuant to federal law and regulations. This term excludes independent contractors.
By Type (4)
Independent Contractor Agreement
Defines the services a contractor will provide to a client.
Subcontractor Agreement
Outlines the conditions for a subcontractor-contractor relationship.
Non-Compete Agreement
Protects a company's interests by limiting an employee's activities.
Non-Disclosure Agreement
Legally secures the confidentiality of sensitive business information that employees receive to perform their jobs.
Hiring in Tennessee
There are labor laws and regulations in Tennessee that you need to know before you start writing a Tennessee employment contract.
At-Will Employment
Tennessee is an at-will employment state. There are also exceptions to the at-will employment rules.
Exceptions
- Public Policy: Yes
- Implied Contract: Yes
- Good-Faith Exception: No
Minimum Wage ($/hr)
There is no state minimum wage law in Tennessee. Employers that are subject to the Fair Labor Standards Act must pay the current federal minimum wage of $7.25/hour [2] .
Child Labor
Tennessee does not require employment certificates or age certification. However, any employers of minors who are under 18 years old must obtain and keep proof of the minor’s age on file. This could be a birth certificate, passport, driver’s license, state-issued identification, or parent’s oath as to the minor’s age [3]
Payday
Employers in Tennessee must pay employees on at least a semi-monthly basis.
Meal and Rest Breaks
Minimum paid rest periods are not required in Tennessee. However, meal periods are mandatory. Employees who are scheduled to work six consecutive hours or more should be given a 30-minute meal period. The meal period should not be scheduled during or before the first hour of scheduled work activity [4] .
Recordkeeping Requirements
Tennessee employers must keep certain records for minor workers, including a copy of their birth certificate and records of the hours they worked [5] . Some other recordkeeping requirements that employers have to follow in Tennessee include:
- Unemployment Insurance: 7 years
- Safety and Health/Workers’ Compensation: 30 years for hazardous materials records
Sample
Below, you can download a Tennessee employment contract template in PDF or Word format.
