WAGE AND HOUR DEMAND LETTER
State of Tennessee
Fair Labor Standards Act and Tennessee Wage Law Claims
[ATTORNEY/FIRM LETTERHEAD]
[Firm Name]
[Address Line 1]
[City, Tennessee ZIP]
Tel: [Phone Number]
Fax: [Fax Number]
[Attorney Email]
[Tennessee Board of Professional Responsibility Number]
VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND VIA EMAIL TO: [recipient_email]
[Date]
[Employer Contact Name]
[Title]
[Company Legal Name]
[Company Address]
[City, State ZIP]
Copy to:
[Company General Counsel, if known]
[Registered Agent, if different]
Re: Wage and Hour Violations - [Client Full Name]
[and All Similarly Situated Employees - if collective action contemplated]
Demand for Unpaid Wages Under FLSA and Tennessee Law
CONFIDENTIAL SETTLEMENT COMMUNICATION PURSUANT TO TENN. R. EVID. 408
Dear [Mr./Ms./Mx. Last Name]:
This firm has been retained by [Client Full Name] ("our client") to pursue claims for unpaid wages against [Company Legal Name] ("[Company Short Name]" or "the Company") arising from violations of the Fair Labor Standards Act ("FLSA"), 29 U.S.C. Section 201 et seq., and the Tennessee Wage Regulation Act, Tenn. Code Ann. Section 50-2-101 et seq.
Please direct all further communications regarding this matter to our office.
I. TENNESSEE-SPECIFIC LEGAL FRAMEWORK
A. Applicable Wage and Hour Law
Tennessee does not have a state minimum wage law, so all minimum wage claims must be pursued under federal FLSA. However, Tennessee has wage payment and disclosure requirements that provide additional protections.
Key Legal Framework:
| Category | Tennessee/Federal Requirement | Citation |
|---|---|---|
| Minimum Wage | $7.25/hour (federal FLSA) | 29 U.S.C. Section 206 |
| Overtime | 1.5x regular rate after 40 hours/week | 29 U.S.C. Section 207 |
| Tipped Minimum | $2.13/hour (with tip credit) | 29 U.S.C. Section 203(m) |
| Pay Frequency | At least once per month | Tenn. Code Ann. Section 50-2-103 |
B. Statute of Limitations
| Claim Type | Limitations Period | Citation |
|---|---|---|
| FLSA (standard) | 2 years | 29 U.S.C. Section 255(a) |
| FLSA (willful) | 3 years | 29 U.S.C. Section 255(a) |
| Tennessee wage claims | 6 years (contract) | Tenn. Code Ann. Section 28-3-109 |
| Fraud | 3 years | Tenn. Code Ann. Section 28-3-105 |
C. Tennessee Wage Payment Requirements
Payment Timing Requirements (Tenn. Code Ann. Section 50-2-103):
| Situation | Requirement | Citation |
|---|---|---|
| Regular wages | At least once per month | Tenn. Code Ann. Section 50-2-103 |
| Involuntary termination | Next regular payday or 21 days, whichever is later | Tenn. Code Ann. Section 50-2-103 |
| Voluntary resignation | Next regular payday or 21 days, whichever is later | Tenn. Code Ann. Section 50-2-103 |
| Wage statement | Required at each pay period | Tenn. Code Ann. Section 50-2-108 |
Payroll Deductions (Tenn. Code Ann. Section 50-2-110):
- Written authorization required for deductions
- Employer cannot withhold wages as penalty
- Deductions cannot reduce wages below minimum wage
D. Enforcement Mechanisms
Administrative:
- Tennessee Department of Labor and Workforce Development
- Wage and Hour Section
- Limited enforcement authority for state wage claims
- DOL-WHD for FLSA claims
Private Right of Action:
- Tenn. Code Ann. Section 50-2-103(g): Private action for wage payment violations
- FLSA Section 216(b): Private action for minimum wage and overtime
- Attorney's fees and costs available
E. Tip Credit Rules (Tennessee/Federal)
Tennessee follows federal tip credit rules:
| Requirement | Standard |
|---|---|
| Cash wage minimum | $2.13/hour |
| Tip credit maximum | $5.12/hour |
| Total must equal | $7.25/hour minimum |
| Notice required | Yes, before taking credit |
| Tip pooling | Valid only among customarily tipped employees |
| Employer tip retention | Prohibited |
II. INTRODUCTION AND SUMMARY OF CLAIMS
Our client was employed by [Company Short Name] as a [Job Title] from [Start Date] to [End Date / Present], working at [Work Location(s)] in Tennessee. During this employment, [Company Short Name] violated federal and Tennessee wage laws by:
[ ] Failing to pay the federal minimum wage of $7.25 per hour required under the FLSA
[ ] Failing to pay overtime compensation at 1.5 times the regular rate for hours worked over 40 per week
[ ] Misclassifying our client as exempt from overtime when [he/she/they] should have been classified as non-exempt
[ ] Misclassifying our client as an independent contractor when [he/she/they] was an employee entitled to wage protections
[ ] Failing to pay wages at least monthly as required by Tennessee law
[ ] Failing to pay final wages by the next regular payday or 21 days
[ ] Failing to pay for all hours worked, including:
[ ] Off-the-clock work before/after shifts
[ ] Uncompensated meal periods during which work was performed
[ ] Time spent on required pre-shift or post-shift activities
[ ] Travel time that should have been compensated
[ ] Training time
[ ] Making unlawful deductions from wages
[ ] Unlawful tip pooling or tip credit violations
[ ] Failure to provide proper wage statements
III. FACTUAL BACKGROUND
A. Employment Relationship
| Category | Details |
|---|---|
| Employee Name | [Client Full Name] |
| Job Title(s) | [Title(s)] |
| Dates of Employment | [Start Date] to [End Date / Present] |
| Work Location(s) | [Address(es) in Tennessee] |
| Primary Duties | [Describe job duties] |
| Rate of Pay | $[Amount] per [hour/week/year] |
| Classification | [Exempt / Non-Exempt / Independent Contractor] |
| Pay Frequency | [Weekly / Bi-weekly / Monthly] |
| Supervisor(s) | [Name(s) and Title(s)] |
B. Hours Worked
Our client regularly worked the following schedule:
Typical Weekly Schedule:
| Day | Scheduled Hours | Actual Hours Worked | Unpaid Time |
|---|---|---|---|
| Monday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Tuesday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Wednesday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Thursday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Friday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Saturday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Sunday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Weekly Total | [X hours] | [X hours] | [X hours] |
Average overtime hours per week not compensated at 1.5x rate: [X hours]
C. Specific Wage Violations
[Detail specific violations as applicable - off-the-clock work, misclassification, tip violations, etc.]
IV. LEGAL ANALYSIS
A. Fair Labor Standards Act Coverage
1. Enterprise Coverage
[Company Short Name] is subject to the FLSA because it is an enterprise engaged in commerce with annual gross sales of at least $500,000. 29 U.S.C. Section 203(s)(1)(A).
2. Individual Coverage
Alternatively, our client was individually engaged in interstate commerce because [describe activities affecting interstate commerce].
B. Tennessee Wage Regulation Act Violations
1. Payment Frequency (Tenn. Code Ann. Section 50-2-103)
Tennessee requires employers to pay wages at least once per month. [Describe any violation of this requirement.]
2. Final Wage Payment
Upon termination, employers must pay all wages by the next regular payday or within 21 days, whichever is later. [Company Short Name] failed to comply by [describe violation].
C. Minimum Wage Violation (29 U.S.C. Section 206)
The FLSA requires covered employers to pay employees at least $7.25 per hour for all hours worked. By [describe violation], [Company Short Name] failed to pay our client the minimum wage.
D. Overtime Violation (29 U.S.C. Section 207)
The FLSA requires employers to pay non-exempt employees overtime at a rate of 1.5 times the regular rate for all hours worked over 40 in a workweek.
Our client worked an average of [X hours] per week. [Company Short Name] failed to pay overtime compensation for an average of [X overtime hours] per week.
E. Willfulness
[Company Short Name]'s violations were willful under McLaughlin v. Richland Shoe Co., 486 U.S. 128 (1988), as demonstrated by:
- [Evidence of willfulness]
V. DAMAGES CALCULATION
A. FLSA and Tennessee Damages
Relevant Period: [Start Date - 3 years prior to anticipated filing] to [End Date / Present]
Total Weeks in Period: [X weeks]
1. Unpaid Overtime
| Period | Avg. OT Hours/Week | Regular Rate | OT Rate (1.5x) | Unpaid OT/Week | Weeks | Total |
|---|---|---|---|---|---|---|
| [Period 1] | [X] | $[X.XX] | $[X.XX] | $[X.XX] | [X] | $[Amount] |
| Unpaid Overtime Subtotal | $[Amount] |
2. Unpaid Minimum Wage
| Period | Hours Below MW | Shortfall/Hour | Weeks | Total |
|---|---|---|---|---|
| [Period] | [X] | $[X.XX] | [X] | $[Amount] |
| Minimum Wage Subtotal | $[Amount] |
3. Off-the-Clock Work
| Activity | Hours/Week | Rate | Weeks | Total |
|---|---|---|---|---|
| [Pre-shift work] | [X] | $[X.XX] | [X] | $[Amount] |
| Off-the-Clock Subtotal | $[Amount] |
B. Summary of Damages
| Category | Amount |
|---|---|
| Unpaid Wages | $[Amount] |
| FLSA Liquidated Damages (Equal Amount) | $[Amount] |
| Pre-Judgment Interest | $[Amount] |
| Attorney's Fees (estimated) | $[Amount] |
| Costs (estimated) | $[Amount] |
| TOTAL INDIVIDUAL DAMAGES | $[Amount] |
C. Collective Action Exposure
If this case proceeds as an FLSA collective action:
| Category | Individual | Estimated Class Size | Total Exposure |
|---|---|---|---|
| Unpaid Wages | $[Amount] | [X employees] | $[Amount] |
| Liquidated Damages | $[Amount] | [X employees] | $[Amount] |
| Collective Exposure | $[Amount] |
VI. SETTLEMENT DEMAND
Based on the foregoing, we demand that [Company Short Name] pay $[Settlement Demand Amount] to settle all claims of [Client Full Name].
This demand includes:
- Unpaid wages
- Liquidated damages
- Pre-judgment interest
- Attorney's fees and costs incurred to date
This demand will remain open for twenty-one (21) days from the date of this letter, expiring on [Response Deadline Date].
VII. RESPONSE AND LITIGATION
If we do not receive a satisfactory response by the deadline, we will file suit in:
[ ] Tennessee Circuit Court, [County] County
[ ] United States District Court for the Eastern District of Tennessee
[ ] United States District Court for the Middle District of Tennessee
[ ] United States District Court for the Western District of Tennessee
The Complaint will seek:
1. Unpaid wages under FLSA and Tennessee law
2. Unpaid overtime under 29 U.S.C. Section 207
3. Liquidated damages under 29 U.S.C. Section 216(b)
4. Attorney's fees and costs under 29 U.S.C. Section 216(b) and Tenn. Code Ann. Section 50-2-103(g)
5. Certification as a collective action under 29 U.S.C. Section 216(b)
VIII. DOCUMENT PRESERVATION
LITIGATION HOLD NOTICE
[Company Short Name] must immediately preserve all documents and ESI relevant to these claims, including:
[ ] Time and attendance records
[ ] Payroll records and pay stubs
[ ] Personnel files and job descriptions
[ ] Employee handbooks and policies
[ ] Scheduling records
[ ] Communications regarding pay practices
[ ] Training materials
[ ] Prior DOL investigations
[ ] Tip records (if applicable)
Spoliation of evidence will result in severe sanctions.
IX. CONFIDENTIALITY
This letter is a confidential settlement communication protected under Tennessee Rule of Evidence 408 and applicable evidentiary privileges.
We look forward to your prompt response.
Sincerely,
[Attorney Name]
[Title]
[Firm Name]
[Tennessee BPR No.]
Enclosures:
[ ] Authorization to Represent
[ ] Pay stubs / wage statements (sample)
[ ] Time records (if available)
cc: [Client Name] (via email)
TENNESSEE-SPECIFIC PRACTICE NOTES
[ ] No State Minimum Wage: Tennessee does not have a state minimum wage; all claims rely on FLSA
[ ] 21-Day Final Pay Rule: Terminated employees must receive final wages by next regular payday or 21 days, whichever is later
[ ] Wage Statement Required: Tenn. Code Ann. Section 50-2-108 requires employers to provide wage statements
[ ] Limited State Enforcement: Tennessee Department of Labor has limited wage claim enforcement authority
[ ] Right to Work State: Tenn. Code Ann. Section 50-1-201 et seq.; union-related issues may arise
[ ] At-Will Employment: Tennessee follows at-will doctrine with narrow public policy exceptions
[ ] Federal Court Venue:
- Eastern District (Knoxville, Chattanooga): East Tennessee
- Middle District (Nashville): Middle Tennessee
- Western District (Memphis): West Tennessee
[ ] DOL Contact: Nashville District Office
- Address: 233 Cumberland Bend Drive, Suite 110, Nashville, TN 37228
- Phone: (615) 781-5344
[ ] Collective Action: FLSA Section 216(b) is the primary mechanism for multi-plaintiff wage claims
[ ] Contract Claims: Common law breach of contract with 6-year limitations period may supplement FLSA claims