Effective July 1, 2026, Tennessee Senate Bill 2024 changes the payment timeline for employees compensated on a piecework or commission basis. This shift also applies to final pay, offering employers additional time to calculate and reconcile earnings compared to the previous five-day window.
Key Timing Changes
Under the amendment, wages earned by piecework (paid per item) or commission (paid via sales percentage) employees will now be due by the last day of the following month. This change also applies to final pay requirements for employees compensated in this manner.
Recommended Next Steps for Employers
To prepare for this update, organizations should review employee classifications to identify impacted staff, update internal payroll cycles to align with the July 1, 2026, effective date, and ensure that all handbook policies or compensation agreements reflect the revised state payment deadlines.
