Tennessee has enacted Senate Bill 2024, refining the state’s wage‑payment statutes by introducing new, specific timing requirements for employees compensated through piece‑work or commission arrangements. While the longstanding monthly wage‑payment requirements for traditional hourly and salaried employees remain unchanged, the bill updates the schedule for when employers must pay piece‑rate and commission‑based workers. SB 2024 also codifies consistent final‑pay deadlines for all employees, reinforcing that employers cannot seek exemptions from their obligation to issue timely final wages. The changes are effective July 1, 2026.
Under the revised wage‑payment structure, employers who pay wages monthly must continue paying regular employees by the fifth day of the succeeding month. However, piece‑work and commission employees must be paid no later than the last day of the succeeding month, formally codifying a different schedule for these compensation structures. SB 2024 likewise clarifies final‑payment requirements: most departing or terminated employees must still receive all earned wages by the next regular payday or within 21 days, whichever is later. In contrast, employees paid on a piece‑work or commission basis must receive final compensation by the last day of the month following the date of discharge or voluntary departure. These changes primarily affect private employers with commission plans, piece‑rate compensation systems, or hybrid pay structures. Payroll teams should confirm that wage‑processing cycles and termination workflows accommodate the distinct deadlines for piece‑work and commission workers. Although the framework for traditional employees remains unchanged, SB 2024 imposes important timing adjustments that require employers to review pay practices, revise internal policies, and ensure consistent compliance across employee categories.