Knoxville wages track the lower end of the Sunbelt band: strong institutional demand from the University of Tennessee and nearby Oak Ridge National Laboratory, but a commercial BSC market that competes with hospitality and logistics for every entry-level hire. Tennessee holds to the federal $7.25 minimum with no city-level overrides, so the practical market floor is set entirely by competition. BSCs underestimate how quickly a $1/hr wage gap between a Knoxville cleaning position and a warehouse role translates into vacancy.

BLS Wage Data: What Janitors Earn in Knoxville

Per BLS OEWS Metropolitan Area tables (May 2024), the Knoxville MSA places janitorial mean hourly wages (SOC 37-2011) in the $13–$15.50/hr range, well below the national mean of $17.43/hr. The metro employs approximately 7,000–9,500 janitors across healthcare (UT Medical Center, Tennova, Covenant Health), government, university, and commercial accounts.

Wage Drivers: Why Knoxville Sits Below the National Mean

BEA Regional Price Parities place the Knoxville MSA near 87–91 nationally, per BEA Regional Price Parities. Low housing and utility costs mean nominal wages stretch further than in coastal metros, but the nominal gap versus the national mean is real. UT Knoxville and Oak Ridge generate government-rate and SCA-rate demand above commercial norms; Covenant Health and UT Medical Center anchor hospital EVS. Tennessee unemployment tracked 3.0–3.8% through 2024 per BLS LAUS. Logistics (Amazon, FedEx distribution) and hospitality compete for entry-level labor at $14–$16/hr, compressing BSC recruiting capacity at the market floor.

Loaded Labor Cost: What Employers Actually Pay

Burden breakdown at $14.00/hr: FICA 7.65% ($1.07) + TN SUTA ~2% ($0.28) + workers’ comp $1.50–$2.20/$100 per Tennessee Department of Labor and Workforce Development + GL ($0.30/hr) + health ($1.50–$2.75/hr) + PTO ($0.37/hr). $14.00 × 1.29 = $18.06 loaded; supervision adds $0.35–$0.55 = $18.41–$18.61 all-in. Use the bid stress test to verify per-account margin at Knoxville wage levels.

State Minimum Wage and Local Premiums

Tennessee has no state minimum wage above the federal $7.25/hr, per Tennessee Department of Labor, Minimum Wage. State law preempts local wage ordinances; no Knoxville city minimum operates above the federal floor. The practical market floor for full-time janitorial is driven by competition, typically landing in the $12–$14/hr range. Tipped wage rules do not apply to cleaning work.

Union Landscape and Collective Bargaining

Tennessee is a Right-to-Work state. Commercial BSC janitorial work in Knoxville is almost entirely non-union. UT Knoxville physical plant staff are directly employed state workers; Oak Ridge National Laboratory custodial work falls under DOE contract management with SCA compliance. Some hospital EVS workers at large Covenant Health and UT Medical Center facilities may be covered by SEIU Healthcare locals. See SEIU.org for organizing context.

Workers’ Compensation Rates for NAICS 561720

Tennessee workers’ comp rates for NAICS 561720 run approximately $1.50–$2.20 per $100 payroll. Tennessee requires coverage for employers with five or more employees; rates are filed with the state. Details at Tennessee Department of Labor, Workers’ Compensation.

Prevailing Wage and Service Contract Act Implications

Federal contracts at Oak Ridge National Laboratory, TVA facilities, and federal courthouse buildings in Knoxville require Service Contract Act compliance. Wage determinations are at SAM.gov Wage Determinations; SCA janitor rates for the Knoxville area typically run $15–$19/hr. Tennessee has no statewide prevailing wage law covering janitorial service contracts. See DOL Service Contract Act.

Total Compensation: Benefits, Turnover, and Hiring Cost

Per BLS Employer Costs for Employee Compensation, benefits represent 27–31% of total compensation for service-sector workers. Tennessee has no state-mandated paid sick leave, though competitive pressure from logistics employers has pushed many Knoxville BSCs toward voluntary PTO policies. Per ISSA benchmarks, janitorial turnover runs 75–200% annually. Replacing one Knoxville janitor costs roughly $1,400–$2,800 per event including vacancy loss and onboarding.

The Oak Ridge SCA Premium Requires Process Investment

Cleaning at DOE-managed Oak Ridge facilities pays SCA rates $3–$5/hr above Knoxville’s commercial median, but federal facility access requires background investigations, certified payroll records, and health and safety protocols more intensive than commercial cleaning. A small Knoxville BSC pursuing Oak Ridge work for the first time faces six to twelve months of compliance build-out before the first SCA contract can be performed profitably. Price the setup cost into any federal bid; the margin exists but is not immediate.

Primary Sources

• BLS OEWS Metropolitan Area Estimates (May 2024)
• Tennessee Department of Labor, Minimum Wage
• Tennessee Department of Labor, Workers’ Compensation
• SAM.gov, SCA Wage Determinations
• US DOL, Service Contract Act
• BLS Local Area Unemployment Statistics
• BEA Regional Price Parities

See the bid template guide for the Knoxville MSA for scope-of-work tables and pricing benchmarks. Build your cost model with the Opora bid generator. For education facility cleaning, see the education cleaning hub. Stress-test bids with the bid stress test.

By the Opora Editorial Team · Last updated: 2026