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.
See how Memphis's hotel living wage rules stack up against other locations.
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