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.

  • Workforce Development Incentives

    Current labor supply satisfies 83% of peak labor demand.

    State offered $99,264,821 in grants and incentives for workforce preparation and development in 2021.

  • Career and Technical Education

    76% of CTE high school graduates are placed in colleges or careers.

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

  • Job Growth Rate

    4.2%.

Monthly Unemployment Rate in Tennessee

Please see ABC's state-by-state construction unemployment data here.

Industry Overview

Prompt Pay

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

Immigration/E-Verify Mandate

All employers must use E-Verify for new employees or request newly hired employee provide a valid state issued driver license or photo ID card.

Percentage of State GDP From Nonresidential Construction

3.9%.

Incidence Rate

3.6

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

7.5%

Marijuana Legalization Status

Low THC marijuana legalized for medicinal use.

Business Facts

Minimum Wage

7.25

Percentage of Pensions Funded

98.2%

Effective Real-Estate Tax Rate

0.63%

Corporate Income Tax Rate(s)

6.50%

State and Local Public Construction Expenditures (in millions)

$5,365
p
Overall Rank 19
  • Project Labor Agreements A
  • Prevailing Wage B
  • Right to Work A
  • Public-Private Partnerships B
  • Workforce Development Incentives B
  • Career & Technical Education C
  • Job Growth Rate A

Compared to

Tennessee
 
National
A
PLA
B
B
PPP
C
B
WDI
C
C
CTE
B
A
JGR
C

Compared to the National Average

Tennessee
 
National
A
PLA
B
B
PPP
C
B
WDI
C
C
CTE
B
A
JGR
C

Visit Our Local State Chapters

ABC Greater Tennessee Chapter

ABC West Tennessee Chapter