Memphis Code Chapter 18-49 requires city contractors and recipients of city economic-development incentives to pay employees a defined living wage indexed annually. Hotel workers benefit only when hotels receive PILOT tax breaks or city contracts; otherwise federal $7.25 minimum applies.
Memphis enacted its Living Wage Ordinance in 2006 covering city contractors performing services valued over set thresholds. Wages typically index to ~$13-15/hour, adjusted annually. The Memphis-Shelby Economic Development Growth Engine (EDGE) PILOT program incorporates living wage requirements into incentive agreements. Tennessee state law (TCA 50-2-112) preempts municipal minimum wages for private employers, so Memphis cannot mandate citywide minimum wages. Hotels participating in PILOT or Convention Center contracts must comply; standalone private hotels are not bound and pay federal $7.25 floor.
Contractors violating the living wage face contract suspension, repayment of incentives, debarment from future city work, and EDGE clawback provisions for PILOT recipients.
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