Tennessee

Discussion

Tennessee: Payment Rules for Piece Rate and Commission-Based Employees

Effective July 1, 2026, SB 2024 requires that wages earned by an employee paid on a piece rate or commission basis are due and payable by the last day of the month following the month in which they were earned. Additionally, and upon voluntary or involuntary termination, the final wages of such employees must also be paid by the last day of the month following the date or termination. Tennessee employers that compensate employees on a piece rate or commission basis should review their payroll practices and payment schedules for compliance with the new deadlines.

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