Tennessee Code 50-2-112 preempts Memphis and all Tennessee cities from setting local minimum wages above the federal $7.25 floor. Tipped workers earn $2.13 plus tips. Only city contractors fall under Memphis Living Wage Ordinance Chapter 18-49.
Tennessee has no state minimum wage and adopts federal Fair Labor Standards Act rates: $7.25 standard, $2.13 cash wage for tipped workers (employer must make up shortfall to reach $7.25). TCA 50-2-112 explicitly preempts municipalities and counties from enacting higher local minimum wages, scheduling laws, or wage-related mandates for private employers. Memphis can only impose wage floors on its own contractors via Chapter 18-49. Federal Department of Labor enforces FLSA; state Department of Labor handles wage claims. Tipped restaurant and hotel workers in Memphis tourism industry rely heavily on this tipped credit.
Wage theft below federal $7.25 triggers federal DOL investigations, back-pay orders, and liquidated damages up to twice unpaid wages plus civil penalties.
See how Memphis's minimum wage preemption rules stack up against other locations.
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