The minimum wage in Memphis, Tennessee is $7.25 per hour. That’s the federal rate under the Fair Labor Standards Act, and it applies here because Tennessee is one of the few states with no minimum wage law of its own.1U.S. Department of Labor. State Minimum Wage Laws The rate has not changed since July 2009 and covers employees who work for businesses engaged in interstate commerce or that bring in at least $500,000 in annual sales.2Office of the Law Revision Counsel. 29 USC 206 – Minimum Wage
Memphis cannot raise that floor for private employers. A 2013 state preemption statute (Tenn. Code Ann. ยง 50-2-112) bars Tennessee cities and counties from setting a local minimum wage above the federal rate for private businesses. Living wage rules that do exist in Memphis and Shelby County reach only government employees and government contractors, not private jobs generally.
If You Work for Tips
Servers, bartenders, hotel staff, and other workers who regularly take home more than $30 a month in tips can be paid a direct cash wage as low as $2.13 per hour. The arrangement is called a tip credit, and it only works if your tips plus that cash wage add up to at least $7.25 an hour.3Office of the Law Revision Counsel. 29 USC 203 – Definitions
Three conditions have to be met before an employer can use the tip credit:
- If your tips plus the $2.13 cash wage fall short of $7.25 in any pay period, the employer owes you the difference.
- The employer has to tell you about the tip credit arrangement before using it. Skip that step, and you are owed the full $7.25 in direct wages.
- The tips are yours. The only exception is a tip pool shared among workers who regularly receive tips.4U.S. Department of Labor. Tip Regulations Under the Fair Labor Standards Act
Managers and supervisors cannot keep any portion of other employees’ tips, whether through a tip pool or a shared jar. A manager who earns their own tips can be required to contribute to a pool for non-managerial staff, but nothing from the pool can come back to that manager.5U.S. Department of Labor. Fact Sheet 15B – Managers and Supervisors Under the FLSA and Tips
When a Lower Rate Is Legal
Federal law allows a few sub-minimum wage categories, and they apply in Memphis the same as anywhere else.
- Workers under 20 can be paid $4.25 per hour during their first 90 consecutive calendar days on the job. On day 91, or on the worker’s 20th birthday if that comes first, pay has to move up to $7.25.6U.S. Department of Labor. Fact Sheet 32 – Youth Minimum Wage
- Student-learners enrolled in vocational programs can be paid 75 percent of the minimum wage, about $5.44 an hour, if the employer holds a Department of Labor certificate.7eCFR. 29 CFR Part 520 Subpart E – Student-Learners
- Under Section 14(c) of the FLSA, employers with a special certificate can pay workers whose disabilities affect productivity below the standard minimum. A proposed rule to phase this program out was withdrawn in July 2025, so it remains active.8Federal Register. Employment of Workers With Disabilities Under Section 14(c) of the Fair Labor Standards Act – Withdrawal
Overtime After 40 Hours
If you are not in an exempt role, any hours past 40 in a single workweek have to be paid at one and a half times your regular rate.9U.S. Department of Labor. Wages and the Fair Labor Standards Act At the $7.25 minimum, overtime comes to $10.88 per hour. Tennessee has no separate overtime law, so federal rules are the only ones in play, and an employer cannot average your hours across two weeks to dodge the overtime trigger. Each workweek stands on its own.
Executive, administrative, professional, and outside sales employees, along with some computer professionals paid at least $27.63 per hour, are exempt from both minimum wage and overtime.10Office of the Law Revision Counsel. 29 USC 213 – Exemptions
When You Have to Be Paid
Tennessee requires private employers to pay workers at least once a month, with specific deadlines tied to the payroll schedule:11Justia Law. Tennessee Code 50-2-103 – Payment of Employees in Private Employments
- On a monthly schedule, wages earned before the first of the month are due by the fifth of the following month.
- On a twice-monthly or more frequent schedule, wages earned before the first are due by the twentieth of the following month, and wages earned before the sixteenth are due by the fifth of the next month.
If you leave or are fired, your final wages are due either on the next regular payday or 21 days after your last day, whichever is later.
Higher Pay Floors for Government Work
Private employers in Memphis are stuck at $7.25, but local government bodies have set higher minimums for their own workforces and for companies that contract with them. Shelby County’s living wage ordinance raised the minimum for permanent county employees and county service contractors to $20.77 per hour for the fiscal year starting July 1, 2025. The rate tracks MIT’s Living Wage Calculator for a single adult with no children in Tennessee.12Shelby County Government. Ordinance Amending Article V Section 14-136 of the Shelby County Code – Living Wage
The City of Memphis has its own pay plan. Under the FY2026 schedule effective July 1, 2025, the lowest general pay grade starts at $16.60 per hour, though a few entry-level specialty positions can start a bit lower.13City of Memphis. FY26 Pay Plan If your employer holds a service contract with the city or county, ask whether the government living wage covers your position.
If You’re Being Paid Less Than You’re Owed
You have two complaint routes if your employer is paying under $7.25, failing to top up the tip credit, or skipping overtime.
The U.S. Department of Labor’s Wage and Hour Division takes complaints by phone at 1-866-487-9243 or online. Investigators can audit payroll records, interview workers, and require the employer to pay back wages if they find a violation.14U.S. Department of Labor. How to File a Complaint
You can also file through the Tennessee Department of Labor and Workforce Development’s online portal. After intake you’ll be sent a Statement of Wage Claim Form and assigned an inspector. Once the form is returned, the inspector contacts the employer, who has 20 calendar days to resolve the matter before the claim moves forward for review and possible penalties.15Tennessee Department of Labor and Workforce Development. How to Begin a Wage Claim
Before you file, pull together every pay stub for the period in question, write out the hours you actually worked with start and end times, and note the business’s full legal name and your supervisor’s name.
What You Can Recover
A successful wage claim gets you more than back pay. Under federal law, the employer owes the unpaid wages plus an equal amount in liquidated damages, essentially doubling the recovery, and a court will also order payment of your attorney’s fees and costs.16Office of the Law Revision Counsel. 29 USC 216 – Penalties You generally have two years from the violation to file, or three years if the violation was willful.17U.S. Department of Labor. Back Pay You can go through the Department of Labor or file a private lawsuit in federal or state court.
Retaliation Is Illegal
Your employer cannot fire you, cut your hours, demote you, or otherwise punish you for filing a complaint, taking part in an investigation, or raising concerns at work. The protection covers verbal and written complaints and reaches former employees too.18U.S. Department of Labor. Fact Sheet 77A – Prohibiting Retaliation Under the Fair Labor Standards Act If retaliation happens, a separate complaint or private lawsuit can win reinstatement, lost wages, and an equal amount in liquidated damages.