Prevailing wage in Tennessee

Who and what this applies to

State-funded highway construction under the Tennessee Prevailing Wage Act for State Highway Construction Projects. The state labor department’s current program page publishes 2026 highway rates and links the Act.

Thresholds and scope

This guide covers state highway construction, including building, rebuilding, locating, relocating or repairing streets, highways and bridges. It does not apply the highway rule to every state-funded building project.

The rules

• T.C.A. 12-4-403 requires highway contractors on covered state contracts to pay at least the prevailing rates for the work classifications. The state labor department surveys highway contractors annually to determine those rates. Source
• Under T.C.A. 12-4-407 and 12-4-408, agencies obtain the applicable schedule before advertising for bids or contracting, include it in the specifications and contract, and require the contractor and subcontractors to pay it. Source

Primary sources

• Tennessee Department of Labor: Prevailing Wage Act and current 2026 rates
• T.C.A. §§12-4-402, 12-4-403, 12-4-407 and 12-4-408, official agency-hosted Act

Sources reviewed 2026-09-30. This guide covers the projects and rules stated above.

Back to Tennessee contractor law · Prevailing Wage topic guide.