Tennessee

  • Project Labor Agreements

    Adopted ABC model government-neutrality bill.

  • Prevailing Wage

    Only for highway contractors and subcontractors; $50,000.

  • Right to Work

    Yes.

  • Public-Private Partnerships

    Statute authorizes the Department of Transportation to enter into P3s to develop a tollway or toll facility, as well as mass transit projects and their associated facilities. Bridges, highways and tunnels are excluded. Unsolicited bids are allowed, but competing bids are accepted during a subsequent 90-day review process. Statute neither permits nor prohibits the use of P3s on vertical construction projects.

  • Workforce Development Incentives

    Apprenticeship Tax Credit – Employers that employ an apprentice can receive a tax credit in an amount equal to $2,000 or 10% of the wages earned by an apprentice, whichever is less.

    FastTrack Job Training Assistance Program – Reimbursable grant assisting companies with training expenses and the development of customized training programs. Two reimbursement methods: traditional (reimbursement for classroom instruction, certain travel expenses, system support applications, instructor for on-the-job training, and specific vendor training) and job based training (offers the company reimbursement of training funds determined from project-specific payroll records). Supports the training of net new full-time employees for new and expanding companies. Funding levels are based on the number of net new full-time jobs created, amount of capital invested, wages of new employees and the types of skill and knowledge level required. Tennessee Department of Economic and Community Development (TNECD) is not able to provide training incentives for any positions filled prior to the execution and approval of a contract.

  • Career and Technical Education

    93% of CTE high school graduates are placed in colleges or careers.

    Tennessee does recognize NCCER as an approved curriculum for CTE programs.

  • 5-Year Average Job Growth Rate (2011-16)

    4.1%.

Monthly Unemployment Rate in Tennessee

Industry Overview

Prompt Pay

Private: Owner must pay prime within 30 days of invoice.
Public: Owner must pay prime within 45 days.
Subs: For both public and private, the prime must pay subs and subs pay lower tiers within 30 days.

Immigration/E-Verify Mandate

All public and private employers with more than six employees must either use E-Verify or check and retain acceptable work authorization documents. As a result of legislation passed and signed into law in April 2016, all employers with 50 or more employees will be required to use E-Verify and will no longer have the option of document retention. This change will take effect January 1, 2017.

Percentage of State GDP From Nonresidential Construction

3.4%.

Incidence Rate in Construction (2013)

3.2.

Occupational Safety & Health Oversight (State vs. Federal)

State plan covers private workplaces and state and local government workplaces.

Percentage of Union Membership in Private Construction

8%.

Marijuana Legalization Status

Fully illegal.

Business Facts

Minimum Wage (2016)

7.25

Percentage of Pensions Funded

91%

Effective Real-Estate Tax Rate

0.75%

Corporate Income Tax Rate(s)

6.50%

Capital Spending % As Share of Total State Spending (2013)

5.3%