Memphis's Employment Preemption: The Rules That Matter

Memphis maintains 200 local ordinances across all categories, and 2 of those deal specifically with employment preemption. Here is a breakdown of what the city actually requires, what is prohibited, and where Memphis falls on the strict-to-permissive spectrum compared to other cities.

Paid Leave Preemption

Memphis cannot require paid sick leave or paid family leave from private employers. Tenn. Code Ann. § 50-1-304 expressly preempts local rules on leave, fringe benefits, and employment terms. Tennessee has no state paid-leave program. Federal FMLA (12 weeks unpaid) is the only floor.

Key details: Local Paid Leave: Preempted. Preempting Statutes: TN § 7-51-1802; § 50-1-304. State Paid Sick Leave: None. State Paid Family Leave: None. Federal Floor: FMLA — 12 weeks unpaid.

No local penalties because no local mandate exists. FMLA violations enforced by U.S. DOL Wage & Hour under 29 U.S.C. § 2617. Employer PTO policies enforceable as wage contracts under Tenn. Code Ann. § 50-2-103.

This is one of the stricter rules in Memphis's municipal code. If you are unsure whether your situation complies, it is worth checking with the city before proceeding.

Minimum Wage Preemption

Memphis cannot set a private-employer minimum wage. Tenn. Code Ann. § 7-51-1802 preempts local wage ordinances. Tennessee has no state minimum wage statute, so federal FLSA $7.25/hour applies. Tipped wage: $2.13/hour cash + tips equaling $7.25.

Key details: State Minimum Wage: None (FLSA $7.25 applies). Tipped Wage: $2.13/hr cash + tips. Preemption Statute: Tenn. Code Ann. § 7-51-1802. Memphis City Living Wage: $15.50/hr (city employees + contractors). Federal Authority: U.S. DOL Wage & Hour.

All minimum-wage enforcement in Tennessee is federal under FLSA. Remedies under 29 U.S.C. § 216(b) include back wages, equal liquidated damages for willful violations, civil money penalties up to $2,374 per repeat violation, and 2-year (3-year willful) statute of limitations.

This is not one of those rules that cities tend to ignore. Memphis actively enforces its minimum wage preemption requirements.

The Bottom Line

Memphis is tougher than many cities when it comes to employment preemption. Out of the 2 rules covered here, 2 are rated strict. If you are a homeowner, renter, or business owner in Memphis, take the time to understand these requirements before they become a problem. Most violations come with fines, and some repeat violations can escalate.

Keep in mind that Memphis can amend these rules at any council meeting. For the most current version of any rule mentioned here, check the specific ordinance page, where we track updates as they happen.