Tennessee final paycheck law

Layoffs and other situations

The wage payment law applies to private employers with five or more employees (Tenn. Code Ann. § 50-2-103(b)). Employees must wait 21 days after separation before filing a complaint with the Department. Source: lwdsupport.tn.gov↗ (opens in a new tab) Source: tn.gov↗ (opens in a new tab)

Unused vacation and PTO

Payout is owed only if your policy or labor agreement provides for it. The Tennessee Department of Labor and a 2006 Tennessee Attorney General opinion have taken different views on use-it-or-lose-it policies, so check with the Department before relying on one. Source: tn.gov↗ (opens in a new tab)

If the final paycheck is late

Violations are a Class B misdemeanor, and the Department may assess a civil penalty for willful violations (§ 50-2-103). Source: tn.gov↗ (opens in a new tab)

The law and where to check

The law: Tenn. Code Ann. § 50-2-103 (opens in a new tab)

The agency: Tennessee Department of Labor and Workforce Development, Wage and Hour (Workplace Regulations and Compliance) (opens in a new tab)

About the sources: The rules above come from the Tennessee Department of Labor and Workforce Development and a Tennessee Attorney General opinion that quotes Tenn. Code § 50-2-103.

What federal law says

The federal Fair Labor Standards Act does not require employers to give a final paycheck immediately. The U.S. Department of Labor says an employee who has not received final pay by the regular payday for their last pay period can contact its Wage and Hour Division or the state labor department. Source: U.S. Department of Labor↗ (opens in a new tab)

Final paycheck checklist for Tennessee employers

A simple order of work, based on the rules above. It is not a legal checklist.

1. Write down how the job ended: fired or let go, or the employee quit. If they quit, note whether and when they gave notice.
2. Find the deadline for that situation in the table above.
3. Add up all hours worked up to the last day, including any overtime.
4. Check your written vacation or PTO policy and the vacation rule above.
5. Add any commission or bonus that was earned, using the rules above.
6. Pay on time by your usual method, or by mail if the rules above allow it and the employee asks.
7. Keep a dated record of what you paid and when.

More Tennessee employment law guides

• All Tennessee employment laws
• Tennessee paid sick leave law
• Tennessee meal and rest break laws
• Tennessee overtime law
• Tennessee pay frequency law
• Tennessee vacation and PTO payout law
• Tennessee new hire reporting
• Tennessee at-will exceptions

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Disclaimer: This guide provides general information based on publicly available official sources and is for information only. It is not legal, tax, payroll or employment-law advice and does not guarantee compliance with federal, state or local requirements. Rules can depend on your location, industry, contracts and other circumstances, and laws change. Always check the official source, the relevant government agency or a qualified professional before making a decision. MadyHR.ai accepts no responsibility for any action taken based on this page.

Last checked: October 19, 2026. Every rule and source link on this page was checked against the official government source on this date. Laws change, so always open the source link before you act.