Underpaid Calculator — Am I Being Underpaid or Paid Below Minimum Wage?
Enter your hourly rate, your state's minimum wage, and hours worked — find out instantly if you're underpaid and estimate wages owed. Not sure of your state's rate? See the 2026 minimum wage table below.
Formula: Underpayment = (minimum wage − your pay rate) × hours worked. Example: $12/hr paid instead of $15/hr for 500 hours = $1,500 owed.
Estimated shortfall per hour: —
Estimated unpaid wages: —
On this page: Common underpayment cases · 2026 minimum wage rates · Tipped workers · Penalties & recovery · FAQ
Related help: Back pay calculator · Unpaid wages calculator · Overtime pay calculator
Am I Being Underpaid? Common Reasons Workers Are Paid Below Minimum Wage
Being “underpaid” can mean different things. This calculator specifically estimates minimum wage underpayment (paid below the legal hourly minimum).
- Pay rate below minimum wage for regular hours worked
- Unpaid training time or required meetings that reduce your effective hourly rate
- Off-the-clock time that makes your pay average out below minimum wage
- Wrong classification (sometimes) — if pay practices treat you like an exempt role
If you were paid the correct rate but are missing hours, use the Unpaid Wages Calculator. If the issue spans multiple pay periods, estimate totals with the Back Pay Calculator.
2026 Minimum Wage Rates by State
Use these rates in the calculator above. If your state isn't listed, check your state labor department website. Many cities and counties also have local minimum wages higher than the state rate.
| State | Minimum wage | Notes |
|---|---|---|
| Federal (FLSA) | $7.25/hr | Applies where no state/local rate is higher |
| California | $16.50/hr | Some cities higher (LA, SF, San Jose) |
| New York | $16.50/hr | NYC rate; lower in some upstate counties |
| Washington | $16.66/hr | Adjusted annually for inflation |
| Massachusetts | $15.00/hr | Tipped minimum: $6.75/hr |
| Florida | $14.00/hr | Increasing $1/yr through 2026 |
| Texas | $7.25/hr | Follows federal rate |
| Illinois | $15.00/hr | Chicago: $16.20/hr |
| Pennsylvania | $7.25/hr | Follows federal rate |
| Ohio | $10.65/hr | Adjusted annually |
Rates shown are approximate for 2026. Minimum wages change annually in many states. Always verify the current rate with your state labor department before using the calculator. For California-specific rates including fast food ($20/hr) and healthcare ($21/hr+) sector rates, see the California Minimum Wage 2026 guide.
Example: Calculating minimum wage underpayment
A restaurant worker in California was paid $14.00/hour for 6 months (about 1,040 hours). California's minimum wage is $16.50/hour.
| Input | Value |
|---|---|
| Hourly wage paid | $14.00 |
| Legal minimum wage | $16.50 |
| Hours worked | 1,040 hours |
| Shortfall per hour | $2.50 |
| Estimated unpaid wages | $2,600.00 |
This estimate does not include potential penalties, interest, or liquidated damages that may apply under state law. Use the Back Pay Calculator to estimate amounts across multiple pay periods with different rates.
Tipped Workers and Minimum Wage: What You're Actually Owed
Tipped employees — servers, bartenders, delivery drivers — are subject to special minimum wage rules that confuse many workers. Here's how it works:
- Federal tip credit: Employers can pay tipped workers as little as $2.13/hr if tips bring the total to at least $7.25/hr. If tips fall short on any shift, the employer must make up the difference — this is called a "tip credit violation."
- California, Minnesota, Alaska: No tip credit allowed. Tipped employees must receive the full state minimum wage regardless of tips earned.
- Tip pooling: Forced tip pooling with managers or non-tipped staff is illegal under federal law and can reduce your effective hourly rate below minimum wage.
- Effective hourly rate test: Divide your total pay (wages + tips) by hours worked. If the result is below your state minimum wage, you are being underpaid.
To use this calculator for a tip credit situation, enter your effective hourly rate (wages + average tips ÷ hours) as your "hourly wage paid" and your state minimum as the "legal minimum wage." The shortfall estimate will reflect any tip credit violation.
Tip credit violations are one of the most commonly under-reported wage violations. If your employer regularly schedules slow shifts where tips don't cover the gap, the cumulative underpayment can be significant — and recoverable.
Penalties and Recovery: What You May Be Owed Beyond Back Wages
Minimum wage underpayment doesn't just entitle you to the missing wages — many jurisdictions add penalties and damages on top:
- Federal FLSA: Employers who willfully underpay minimum wage owe back wages plus an equal amount in liquidated damages — effectively doubling your recovery. Civil penalties of up to $1,000 per violation are also possible for repeat offenders.
- California: In addition to back wages, employees may recover penalties under PAGA (Private Attorneys General Act) — $100 per employee per pay period for initial violations and $200 for subsequent ones. These can add up quickly for long-running violations.
- New York: Liquidated damages of 100% of unpaid wages plus a civil penalty of up to $10,000 for first-time violations.
- Statute of limitations: Federal FLSA claims must be filed within 2 years (3 years for willful violations). Many states allow 3–6 years. File sooner rather than later — every pay period you wait potentially reduces your recoverable amount.
This calculator estimates back wages only. For a full picture of what you may be owed including penalties, consult an employment attorney — many handle minimum wage cases on contingency, meaning no upfront cost.
Frequently Asked Questions
Am I underpaid? How to use this calculator to find out
To find out if you're underpaid, enter your current hourly rate, your state's legal minimum wage (see the rate table above), and total hours worked at that rate. If your rate is below the minimum, the calculator estimates how much you may be owed. If your rate is at or above minimum wage but you're still missing pay, use the Unpaid Wages Calculator instead.
What is minimum wage underpayment?
Minimum wage underpayment occurs when an employee is paid less than the legally required minimum hourly wage. This can happen through a direct rate below the minimum, through unpaid time (such as required training or off-the-clock work) that drags the effective hourly rate below the minimum, or through illegal tip credit practices where tip shortfalls aren't made up by the employer. The underpayment amount is the difference between what was paid and what should have been paid, multiplied by total hours affected.
Am I entitled to minimum wage?
Most employees are entitled to the federal or state minimum wage, whichever is higher. Key exemptions include certain tipped workers (subject to tip credit rules), full-time students in specific programs, workers with disabilities under special certificates, and some apprentices. Independent contractors are not covered by minimum wage law — though misclassification as a contractor when you should be an employee is itself a wage violation. If you're unsure whether an exemption applies, consult your state's Department of Labor.
Does this include overtime or penalties?
No. This calculator estimates base wage underpayment only — the difference between what you were paid and the legal minimum, multiplied by hours worked. It does not calculate overtime premiums, liquidated damages, PAGA penalties, or interest on unpaid wages. For overtime underpayment, use the Overtime Pay Calculator. For a full recovery estimate including penalties, consult an employment attorney.
Can underpaid wages be recovered?
In many cases, underpaid wages can be recovered retroactively, subject to statutory time limits.
How do I know if I'm being underpaid?
Compare your hourly pay rate to the minimum wage in your state. If you earn less than the legal minimum, you are being underpaid. Also check if unpaid time (training, meetings, off-the-clock work) reduces your effective hourly rate below minimum wage. Use the calculator above to estimate how much you may be owed.
Is this calculator legally accurate?
This tool provides an estimate only and does not account for all exemptions, job categories, or local rules. It is not legal or financial advice.
Not sure which calculator fits your situation? See all wage and pay calculators.