Wage Garnishment in Tennessee

Tennessee: Federal Baseline with No State Minimum Wage

Tennessee follows the federal baseline CCPA limits under Tenn. Code Ann. § 26-2-106, with no additional state-level wage garnishment protections. Like Alabama and Mississippi, Tennessee has no state minimum wage law, defaulting entirely to the federal $7.25/hour. This combination places Tennessee among the least protective states in the country for workers facing wage garnishment.

No State Minimum Wage: What It Means

Tennessee is one of only five states without its own minimum wage law (along with Alabama, Louisiana, Mississippi, and South Carolina). For garnishment purposes, this means:

• The lowest-paid workers earn exactly the federal minimum: $290/week
• The protected floor is $217.50/week — the same as everywhere
• But the earnings base above the floor is minimal, meaning even the “protected” amount represents nearly the entire paycheck

A Tennessee minimum-wage worker retains at most $272/week after maximum garnishment — barely above the poverty line for a single person.

Southeast Comparison

Tennessee’s protections are among the weakest in the Southeast, but not unique. Georgia and Alabama share the federal-default, no-state-minimum-wage profile. Kentucky also follows the federal baseline with a $7.25 minimum wage. North Carolina and South Carolina ban garnishment entirely — dramatically stronger. Virginia uses a 40× multiplier. Arkansas follows the federal baseline but has an $11.00 minimum wage. Tennessee is in the bottom tier.

Low Asset Exemptions Compound the Problem

Tennessee’s $5,000 personal property exemption for wage earners is among the lowest in the nation. When combined with the federal-default wage garnishment rules and no state minimum wage, Tennessee workers face a comprehensive lack of legal protection against debt collection. The NCLC has consistently ranked Tennessee among the worst states for consumer protection.

What Tennessee Workers Should Know

Tennessee workers have only the federal CCPA as their shield against wage garnishment. There is no head-of-household enhancement, no reduced cap, and no enhanced multiplier. Workers should be aware that child support, student loans, and tax debts are subject to separate, often more aggressive garnishment rules.

Statute: Tenn. Code Ann. § 26-2-106; 15 U.S.C. § 1673 — Official source

This calculator is for consumer debt garnishment only. Not legal advice. Rules vary by debt type (student loans, child support, taxes). Verify with official sources before making any financial or legal decisions.