Minimum Wage Calculator

What Is Minimum Wage?

Minimum wage is the lowest hourly rate employers must legally pay. The Fair Labor Standards Act (FLSA) sets the federal minimum at $7.25/hour, but most states and many cities have higher rates. Employers must pay the highest applicable rate.

Frequently Asked Questions

What is minimum wage?

Minimum wage is the lowest hourly rate employers must legally pay workers. The federal minimum wage is $7.25/hour. Many states and cities have higher minimum wages.

What is the current federal minimum wage?

The federal minimum wage is $7.25 per hour, unchanged since July 2009. However, 30+ states and many cities have higher minimum wages.

How is minimum wage calculated?

Minimum Wage Pay = Applicable Minimum Wage × Hours Worked. Use the highest applicable rate (federal, state, or local) that covers the workplace.

What is the tipped minimum wage?

The tipped minimum wage is $2.13/hour under federal law. Employers must ensure tips bring total earnings to at least the regular minimum wage. Some states require higher tipped minimums.

Who is exempt from minimum wage?

Exemptions include: certain salaried executive, administrative, and professional workers; outside sales; some farm workers; and workers with disabilities under special certificates.

What is the youth minimum wage?

A youth minimum wage of $4.25/hour applies to workers under 20 for their first 90 consecutive calendar days of employment.

How do state minimum wages differ from federal?

When state and federal minimum wages differ, the higher rate applies. State minimum wages range from $7.25 (following federal) to $17+ in high-cost states.

What cities have their own minimum wage?

Many cities have minimum wages exceeding state rates, including Seattle ($19.97), San Francisco ($18.07), New York City ($16.50), Los Angeles ($16.78), and Denver ($18.29).

How often does minimum wage change?

Some states index minimum wage to inflation with automatic annual increases. Others require legislative action. Federal minimum wage changes require Congressional approval.

What is the minimum wage for salaried employees?

Salaried employees must earn at least the minimum wage equivalent. Under FLSA, exempt salaried employees must earn at least $684/week ($35,568/year) as of 2024.

How does overtime interact with minimum wage?

Overtime (1.5× regular rate) applies after 40 hours/week. If the regular rate is at or near minimum wage, the overtime rate must be at least 1.5× minimum wage.

What are minimum wage violations?

Violations include: paying below the applicable minimum wage, failing to pay overtime, making improper deductions, and paying tipped workers below minimum without tip credit compliance.

How do you report a minimum wage violation?

File a complaint with the US DOL Wage and Hour Division, your state labor department, or consult an employment attorney. Whistleblower protections apply.

What penalties exist for minimum wage violations?

Penalties include: back wages owed, liquidated damages (equal to back wages), civil penalties, and attorneys fees. Willful violations may have extended statutes of limitations.

What is a living wage vs minimum wage?

Living wage is the income needed to meet basic needs (housing, food, healthcare, transportation). It is typically higher than minimum wage and varies by location and family size.

How do minimum wage increases affect employment?

Research shows mixed effects: some studies find minimal job loss from moderate increases; others show reduced hours or hiring. Benefits include reduced turnover and increased productivity.

What is the history of US minimum wage?

The federal minimum wage was established in 1938 at $0.25/hour. It has increased 22 times, with the longest gap between increases since 2009.

Which states have the highest minimum wage?

Highest state minimum wages in 2026: Washington ($16.28), California ($16.00), Massachusetts ($15.50), Washington DC ($17.50), New York ($15.00-16.50 by location).

Which states have no minimum wage law?

States following only the federal $7.25 minimum include: Alabama, Louisiana, Mississippi, South Carolina, and Tennessee. Some of these have no state minimum wage law.

How do minimum wages vary by industry?

Some states have industry-specific minimum wages for hospitality, agriculture, or domestic workers. These may differ from the general state minimum.

What is the minimum wage for federal contractors?

Federal contractors must pay at least $17.20/hour under Executive Order 14026 (as of 2024). This applies to covered federal contracts.

Can employers deduct costs from minimum wage?

Deductions that bring pay below minimum wage are prohibited. This includes uniforms, equipment, tools, and cash register shortages.

What is the subminimum wage for workers with disabilities?

Section 14(c) of FLSA allows employers to pay below minimum wage to workers with disabilities under special certificates. This practice is being phased out in some states.

How does minimum wage affect tipped workers?

Tipped workers must receive the regular minimum wage when tips are included. If tips + tipped minimum don't reach the regular minimum, the employer must make up the difference.

What is the minimum wage for students?

Full-time students working part-time may be paid 85% of the applicable minimum wage under certain conditions. Vocational education students have similar provisions.

How is minimum wage enforced?

The DOL Wage and Hour Division conducts investigations, assesses penalties, and collects back wages. State labor departments also enforce state minimum wage laws.

What records must employers keep?

Employers must maintain records of wages, hours, and other conditions for at least 3 years. Accurate time and pay records are essential for compliance.

What is the minimum wage for gig workers?

Gig worker minimum wage varies by state and city. Some jurisdictions require minimum pay per trip or per hour for rideshare and delivery workers.

How often should employers review minimum wage compliance?

Review compliance quarterly and whenever minimum wage laws change. Subscribe to DOL and state labor department updates.

What resources help with minimum wage calculation?

Our calculator, DOL Wage and Hour Division, state labor departments, SHRM, and employment attorneys can help ensure minimum wage compliance.

How can Atlascalcs minimum wage calculator help?

Our calculator compares current pay against applicable minimum wage, shows shortfalls, and calculates annual underpayment amounts for compliance checking.

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External Resources

• DOL - Minimum Wage — US Department of Labor official minimum wage page with rates, compliance guidance, and enforcement.
• DOL - FLSA Overview — Fair Labor Standards Act overview covering minimum wage, overtime, and child labor provisions.
• SHRM - Minimum Wage — Society for Human Resource Management resources on minimum wage compliance and legislative updates.
• Nolo - Minimum Wage — Nolo legal information on minimum wage laws, exemptions, and employee rights.
• FindLaw - Minimum Wage — FindLaw resources on federal and state minimum wage requirements and violations.
• Justia - Minimum Wage — Justia employment law coverage of minimum wage, tip credit, and wage payment laws.