A Tennessee employment contract establishes an employer-employee working relationship and lays out the rules, regulations, and standards of conduct to which both parties must adhere. This form is structured to accommodate both full-time and part-time positions, as well as commission-based jobs involving recurring distributions to the employee. Before signing, the employee will want to review their job responsibilities, period of employment, payment terms, and all other features of the contract to ensure they fully understand what is expected of them.
While oral contracts are sufficient in Tennessee, written agreements are encouraged and ideal for fixed-term employment. Without a written contract, the employment is presumed to be “at-will,” meaning the employer or employee may terminate the agreement without cause.
Independent Contractor Agreement – A contract between a client and a contractor that details the working relationship between the parties.
Subcontractor Agreement – Used by an independent contractor to hire another party (the subcontractor) to complete part of a project.
- Labor Statutes: Title 50
- Definition of Employee: § 50-1-702(5)
- Minimum Wage: Federal min. wage – $7.25/hr (29 U.S.C. § 206).
- Overtime: Federal min. – one and a half (1.5) times the employee’s standard wage (29 C.F.R § 778.107).
- Record Keeping: Employers must keep certain documents for each minor employed (§ 50-5-111), and must otherwise comply with the record keeping laws prescribed in § 50-7-701(a)(1).
Permitted? Yes, an employer can almost always terminate an at-will employee without cause. An at-will employee cannot be terminated for:
- Discriminatory reasons;
- Voting in an election (§ 2-1-106);
- Being called to serve in the military (§§ 8-33-101 – 8-33-109);
- Filing for workers’ compensation (§§ 50-6-101 – 50-6-705);
- Garnished wages (§§ 26-2-101 – 26-2-410);
- Jury duty (§ 22-4-106(d)(1));
- Affiliation or non-affiliation with labor union or employee organization (§ 50-1-201).