Are employers allowed to pay employees differently based on their education level?

In Tennessee, employers are allowed to pay employees differently based on their education level, as long as the pay does not violate any wage and hour laws. Generally, employers may not discriminate on the basis of race, gender, age, and other protected categories. Additionally, any pay differences must be consistent with an applicable exception under the Equal Pay Act or other federal labor laws. The most common exception under the Equal Pay Act is when employers compensate employees based on seniority, merit, quantity or quality of production, or other bona fide factor other than gender. In Tennessee specifically, an employer is allowed to pay employees differently based on their education level if the employer can demonstrate that the pay differential is based on a bona fide factor, such as education, training, experience or other qualifications. Finally, employers in Tennessee must comply with the federal law known as the Fair Labor Standards Act (FLSA). Under the FLSA, employers are prohibited from paying employees less than the federal minimum wage of $7.25 per hour. Additionally, employers must pay employees “time-and-a-half” when they work more than 40 hours in a work week. In conclusion, employers in Tennessee are allowed to pay employees differently based on their education level as long as the differences do not violate any wage and hour laws. Therefore, employers should be familiar with the federal and state laws that govern wages, including the FLSA and the Tennessee Human Rights Act.

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Are employers allowed to pay employees differently based on their education level?

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