Tenn. Code Ann. § 50-2-107
This is the official text of Tenn. Code Ann. § 50-2-107, part of Tennessee’s Code Ann — part of the compiled statutory law of Tennessee, published by the state as "Code Ann." Browse the sections below, each linked to its official government source.
Not legal advice. This page reproduces the official text of a government statute for reference only. Laws change, and how a statute applies depends on your specific facts. For advice about your situation, consult a licensed attorney in your state.
Distribution of service charges or gratuities
Official statutory text
(a) (1) If a business, including a private club, lounge, bar or restaurant, includes on the bill presented to and paid by a customer, member or patron an automatic percentage or specific dollar amount denominated as a service charge, tip, gratuity, or otherwise, which amount is customarily assumed to be intended for the employee or employees who have served the customer, member or patron, that amount shall be paid over to or distributed among the employee or employees who have rendered that service. The payment shall be made at the close of business on the day the amount is received or at the time the employee is regularly paid, or, in the case of a bill for which credit is extended to a customer, member or patron, payment shall be made at the close of business on the day the amount is collected or on the first day the employee is regularly paid occurring after the amount is collected. (2) The payment shall not be reduced, docked or otherwise diminished to penalize an employee for any actions in connection with the employee's employment, if it is derived from a mandatory service charge or tip collected from customers, members or patrons. (3) (A) This section does not apply to bills for food or beverage served in a banquet, convention or meeting facility segregated from the public-at-large, except banquet, convention or meeting facilities that are on the premises of a private club. (B) (i) This section does not apply to bills presented to or charges paid by guests for accommodations and activities at a guest ranch. (ii) For purposes of subdivision (a)(3)(B)(i), "guest ranch" means a facility segregated from the public-at-large: (a) Offering accommodations for overnight stays and activities typical of western ranching; (b) That may provide other recreational activities exclusively for guests in conjunction with the ranching activities, including, but not limited to, fishing, hiking, horseback riding, rafting and swimming; and (c) At which food services are incidental to the operation of the guest ranch, are only for the guests of the guest ranch and the cost of which are included in the fee to stay. (b) A violation of this section is a Class C misdemeanor. Each failure to pay an employee constitutes a separate offense. Acts 1983, ch. 152, § 1; 1989, ch. 591, § 113; 2012, ch. 895, § 1.
(a) (1) If a business, including a private club, lounge, bar or restaurant, includes on the bill presented to and paid by a customer, member or patron an automatic percentage or specific dollar amount denominated as a service charge, tip, gratuity, or otherwise, which amount is customarily assumed to be intended for the employee or employees who have served the customer, member or patron, that amount shall be paid over to or distributed among the employee or employees who have rendered that service. The payment shall be made at the close of business on the day the amount is received or at the time the employee is regularly paid, or, in the case of a bill for which credit is extended to a customer, member or patron, payment shall be made at the close of business on the day the amount is collected or on the first day the employee is regularly paid occurring after the amount is collected. (2) The payment shall not be reduced, docked or otherwise diminished to penalize an employee for any actions in connection with the employee's employment, if it is derived from a mandatory service charge or tip collected from customers, members or patrons. (3) (A) This section does not apply to bills for food or beverage served in a banquet, convention or meeting facility segregated from the public-at-large, except banquet, convention or meeting facilities that are on the premises of a private club. (B) (i) This section does not apply to bills presented to or charges paid by guests for accommodations and activities at a guest ranch
mbers or patrons. (3) (A) This section does not apply to bills for food or beverage served in a banquet, convention or meeting facility segregated from the public-at-large, except banquet, convention or meeting facilities that are on the premises of a private club. (B) (i) This section does not apply to bills presented to or charges paid by guests for accommodations and activities at a guest ranch. (ii) For purposes of subdivision (a)(3)(B)(i), "guest ranch" means a facility segregated from the public-at-large: (a) Offering accommodations for overnight stays and activities typical of western ranching; (b) That may provide other recreational activities exclusively for guests in conjunction with the ranching activities, including, but not limited to, fishing, hiking, horseback riding, rafting and swimming; and (c) At which food services are incidental to the operation of the guest ranch, are only for the guests of the guest ranch and the cost of which are included in the fee to stay.
(1) If a business, including a private club, lounge, bar or restaurant, includes on the bill presented to and paid by a customer, member or patron an automatic percentage or specific dollar amount denominated as a service charge, tip, gratuity, or otherwise, which amount is customarily assumed to be intended for the employee or employees who have served the customer, member or patron, that amount shall be paid over to or distributed among the employee or employees who have rendered that service. The payment shall be made at the close of business on the day the amount is received or at the time the employee is regularly paid, or, in the case of a bill for which credit is extended to a customer, member or patron, payment shall be made at the close of business on the day the amount is collected or on the first day the employee is regularly paid occurring after the amount is collected.
(2) The payment shall not be reduced, docked or otherwise diminished to penalize an employee for any actions in connection with the employee's employment, if it is derived from a mandatory service charge or tip collected from customers, members or patrons.
(3) (A) This section does not apply to bills for food or beverage served in a banquet, convention or meeting facility segregated from the public-at-large, except banquet, convention or meeting facilities that are on the premises of a private club. (B) (i) This section does not apply to bills presented to or charges paid by guests for accommodations and activities at a guest ranch. (ii) For purposes of subdivision (a)(3)(B)(i), "guest ranch" means a facility segregated from the public-at-large: (a) Offering accommodations for overnight stays and activities typical of western ranching; (b) That may provide other recreational activities exclusively for guests in conjunction with the ranching activities, including, but not limited to, fishing, hiking, horseback riding, rafting and swimming; and (c) At which food services are incidental to the operation of the guest ranch, are only for the guests of the guest ranch and the cost of which are included in the fee to stay.
(A) This section does not apply to bills for food or beverage served in a banquet, convention or meeting facility segregated from the public-at-large, except banquet, convention or meeting facilities that are on the premises of a private club.
(B) (i) This section does not apply to bills presented to or charges paid by guests for accommodations and activities at a guest ranch
d in the fee to stay.
(A) This section does not apply to bills for food or beverage served in a banquet, convention or meeting facility segregated from the public-at-large, except banquet, convention or meeting facilities that are on the premises of a private club.
(B) (i) This section does not apply to bills presented to or charges paid by guests for accommodations and activities at a guest ranch. (ii) For purposes of subdivision (a)(3)(B)(i), "guest ranch" means a facility segregated from the public-at-large: (a) Offering accommodations for overnight stays and activities typical of western ranching; (b) That may provide other recreational activities exclusively for guests in conjunction with the ranching activities, including, but not limited to, fishing, hiking, horseback riding, rafting and swimming; and (c) At which food services are incidental to the operation of the guest ranch, are only for the guests of the guest ranch and the cost of which are included in the fee to stay.
(i) This section does not apply to bills presented to or charges paid by guests for accommodations and activities at a guest ranch.
(ii) For purposes of subdivision (a)(3)(B)(i), "guest ranch" means a facility segregated from the public-at-large: (a) Offering accommodations for overnight stays and activities typical of western ranching; (b) That may provide other recreational activities exclusively for guests in conjunction with the ranching activities, including, but not limited to, fishing, hiking, horseback riding, rafting and swimming; and (c) At which food services are incidental to the operation of the guest ranch, are only for the guests of the guest ranch and the cost of which are included in the fee to stay.
(a) Offering accommodations for overnight stays and activities typical of western ranching;
(b) That may provide other recreational activities exclusively for guests in conjunction with the ranching activities, including, but not limited to, fishing, hiking, horseback riding, rafting and swimming; and
(c) At which food services are incidental to the operation of the guest ranch, are only for the guests of the guest ranch and the cost of which are included in the fee to stay.
(b) A violation of this section is a Class C misdemeanor. Each failure to pay an employee constitutes a separate offense.
Acts 1983, ch. 152, § 1; 1989, ch. 591, § 113; 2012, ch. 895, § 1.
(a) (1) If a business, including a private club, lounge, bar or restaurant, includes on the bill presented to and paid by a customer, member or patron an automatic percentage or specific dollar amount denominated as a service charge, tip, gratuity, or otherwise, which amount is customarily assumed to be intended for the employee or employees who have served the customer, member or patron, that amount shall be paid over to or distributed among the employee or employees who have rendered that service. The payment shall be made at the close of business on the day the amount is received or at the time the employee is regularly paid, or, in the case of a bill for which credit is extended to a customer, member or patron, payment shall be made at the close of business on the day the amount is collected or on the first day the employee is regularly paid occurring after the amount is collected. (2) The payment shall not be reduced, docked or otherwise diminished to penalize an employee for any actions in connection with the employee's employment, if it is derived from a mandatory service charge or tip collected from customers, members or patrons. (3) (A) This section does not apply to bills for food or beverage served in a banquet, convention or meeting facility segregated from the public-at-large, except banquet, convention or meeting facilities that are on the premises of a private club. (B) (i) This section does not apply to bills presented to or charges paid by guests for accommodations and activities at a guest ranch
mbers or patrons. (3) (A) This section does not apply to bills for food or beverage served in a banquet, convention or meeting facility segregated from the public-at-large, except banquet, convention or meeting facilities that are on the premises of a private club. (B) (i) This section does not apply to bills presented to or charges paid by guests for accommodations and activities at a guest ranch. (ii) For purposes of subdivision (a)(3)(B)(i), "guest ranch" means a facility segregated from the public-at-large: (a) Offering accommodations for overnight stays and activities typical of western ranching; (b) That may provide other recreational activities exclusively for guests in conjunction with the ranching activities, including, but not limited to, fishing, hiking, horseback riding, rafting and swimming; and (c) At which food services are incidental to the operation of the guest ranch, are only for the guests of the guest ranch and the cost of which are included in the fee to stay.
(1) If a business, including a private club, lounge, bar or restaurant, includes on the bill presented to and paid by a customer, member or patron an automatic percentage or specific dollar amount denominated as a service charge, tip, gratuity, or otherwise, which amount is customarily assumed to be intended for the employee or employees who have served the customer, member or patron, that amount shall be paid over to or distributed among the employee or employees who have rendered that service. The payment shall be made at the close of business on the day the amount is received or at the time the employee is regularly paid, or, in the case of a bill for which credit is extended to a customer, member or patron, payment shall be made at the close of business on the day the amount is collected or on the first day the employee is regularly paid occurring after the amount is collected.
(2) The payment shall not be reduced, docked or otherwise diminished to penalize an employee for any actions in connection with the employee's employment, if it is derived from a mandatory service charge or tip collected from customers, members or patrons.
(3) (A) This section does not apply to bills for food or beverage served in a banquet, convention or meeting facility segregated from the public-at-large, except banquet, convention or meeting facilities that are on the premises of a private club. (B) (i) This section does not apply to bills presented to or charges paid by guests for accommodations and activities at a guest ranch. (ii) For purposes of subdivision (a)(3)(B)(i), "guest ranch" means a facility segregated from the public-at-large: (a) Offering accommodations for overnight stays and activities typical of western ranching; (b) That may provide other recreational activities exclusively for guests in conjunction with the ranching activities, including, but not limited to, fishing, hiking, horseback riding, rafting and swimming; and (c) At which food services are incidental to the operation of the guest ranch, are only for the guests of the guest ranch and the cost of which are included in the fee to stay.
(A) This section does not apply to bills for food or beverage served in a banquet, convention or meeting facility segregated from the public-at-large, except banquet, convention or meeting facilities that are on the premises of a private club.
(B) (i) This section does not apply to bills presented to or charges paid by guests for accommodations and activities at a guest ranch
d in the fee to stay.
(A) This section does not apply to bills for food or beverage served in a banquet, convention or meeting facility segregated from the public-at-large, except banquet, convention or meeting facilities that are on the premises of a private club.
(B) (i) This section does not apply to bills presented to or charges paid by guests for accommodations and activities at a guest ranch. (ii) For purposes of subdivision (a)(3)(B)(i), "guest ranch" means a facility segregated from the public-at-large: (a) Offering accommodations for overnight stays and activities typical of western ranching; (b) That may provide other recreational activities exclusively for guests in conjunction with the ranching activities, including, but not limited to, fishing, hiking, horseback riding, rafting and swimming; and (c) At which food services are incidental to the operation of the guest ranch, are only for the guests of the guest ranch and the cost of which are included in the fee to stay.
(i) This section does not apply to bills presented to or charges paid by guests for accommodations and activities at a guest ranch.
(ii) For purposes of subdivision (a)(3)(B)(i), "guest ranch" means a facility segregated from the public-at-large: (a) Offering accommodations for overnight stays and activities typical of western ranching; (b) That may provide other recreational activities exclusively for guests in conjunction with the ranching activities, including, but not limited to, fishing, hiking, horseback riding, rafting and swimming; and (c) At which food services are incidental to the operation of the guest ranch, are only for the guests of the guest ranch and the cost of which are included in the fee to stay.
(a) Offering accommodations for overnight stays and activities typical of western ranching;
(b) That may provide other recreational activities exclusively for guests in conjunction with the ranching activities, including, but not limited to, fishing, hiking, horseback riding, rafting and swimming; and
(c) At which food services are incidental to the operation of the guest ranch, are only for the guests of the guest ranch and the cost of which are included in the fee to stay.
(b) A violation of this section is a Class C misdemeanor. Each failure to pay an employee constitutes a separate offense.
Acts 1983, ch. 152, § 1; 1989, ch. 591, § 113; 2012, ch. 895, § 1.
Status: in_force
Need a lawyer in Tennessee?
Find a Tennessee lawyer
About this page: Statute text is reproduced from official government publishers via the
Open US Law dataset
(Vaquill AI, snapshot v2026.08, CC BY 4.0). Primary legislative text like this is public domain under the government-edicts doctrine
(Georgia v. Public.Resource.Org, 2020). We link every section back to its official source so you can verify it independently.