PAY UP New $20 minimum wage rule could hit stores and restaurants statewide

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Thousands of workers in the United States could see a significant increase in their earnings as lawmakers in Tennessee debate a proposal to raise the minimum hourly wage to $20. The measure represents a major shift for a state that currently follows the federal minimum wage of $7.25 per hour.

The proposal was introduced last year and is now under review during the 2026 legislative session. If approved, it would apply to businesses across the state, including retail stores and restaurants, requiring higher baseline pay for hourly employees.

Details of the Proposed Minimum Wage Bill

US Dollars
US Dollars

The legislation, known as House Bill 1399, was introduced in 2025 and is scheduled for discussion in the current session. The bill was presented by Justin Pearson and Raumesh Akbari, both of whom represent districts in Memphis.

Under the proposal, employers would be required to pay workers no less than $20 per hour. This would mark a substantial increase compared to the existing federal minimum wage that Tennessee currently follows due to the absence of a state-mandated wage floor.

Overtime Pay Provisions Included

In addition to raising base pay, the bill includes provisions addressing overtime compensation. According to the text of the proposal, employers would be prohibited from paying less than one and one-half times an employee’s regular hourly rate for any hours worked beyond 40 in a single workweek.

This requirement mirrors federal overtime standards while reinforcing worker protections under state law if the bill is enacted.

Legislative Timeline and Next Steps

The Tennessee legislature has scheduled the bill for discussion on February 11, when it will be reviewed by the Banking and Consumer Affairs Subcommittee. The outcome of this discussion will help determine whether the proposal advances further in the legislative process.

Lawmakers are expected to examine potential economic impacts, employer concerns, and worker benefits as part of the debate.

Tennessee’s Current Wage Framework

Unlike many states, Tennessee does not have a state-level minimum wage law. As a result, it adheres to the federal minimum wage of $7.25 per hour, which has remained unchanged since 2009. The proposed legislation would therefore represent one of the largest wage increases in the state’s history.

Supporters argue that higher wages are necessary to reflect rising living costs, while critics often raise concerns about business sustainability and employment levels.

Recent Wage Increases in the Private Sector

The discussion around the bill follows recent wage increases announced by Walmart, which raised pay for thousands of pharmacy employees across the United States. Last month, the company increased wages for approximately 3,000 new pharmacy leaders from an average of $28 per hour to $42 per hour.

Walmart also announced significant increases for pharmacy technicians, raising average hourly pay from $22 to $40.50. This change represents an increase of roughly 86 percent for that role.

Walmart’s Investment in Health and Wellness

The company stated that the wage increases are part of broader investments in its Health and Wellness division, which operates across more than 4,200 locations nationwide. According to Walmart, many pharmacy roles do not require a college degree, including pharmacy sales associate, technician, and operations team lead positions.

In a company statement, Walmart emphasized that the pay increases are intended to strengthen healthcare services in local communities while creating long-term career pathways for employees.

Corporate Perspective on Wage Growth

Kevin Host, Senior Vice President of Pharmacy at Walmart, said the wage increases reflect the company’s commitment to supporting workers who play a critical role in community health services. He noted that investing in employees is central to maintaining high-quality care and operational stability.

As Tennessee lawmakers continue discussions on the proposed $20 minimum wage, recent private-sector pay increases are likely to feature prominently in debates over wages, workforce retention, and economic growth.

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