Minimum Wage Underpayment Calculator — Am I Underpaid?
Enter the hourly rate you were paid, the applicable federal, state, local, or industry minimum wage, and the hours worked at that rate. This tool estimates a direct hourly-rate shortfall.
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
What This Underpayment Calculator Checks
This calculator is designed for a direct hourly-rate shortfall: the wage rate you received is below the applicable minimum wage.
- State or federal minimum: use the higher rule that applies to the work.
- Local minimum: some cities and counties require a higher rate.
- Industry-specific minimum: certain jobs can have a higher sector rate, such as covered California fast-food or health-care work.
If the rate itself was correct but work time was omitted, use the Unpaid Wages Calculator. Unpaid time can create a minimum-wage issue too, but that requires an effective-rate analysis this simple three-input calculator does not perform automatically.
Selected 2026 Minimum Wage Rates
Use the rate that actually applies to the place and type of work. Local or industry-specific rules can be higher than the statewide rate. The examples below are current 2026 reference points, not a complete 50-state chart.
| Jurisdiction | 2026 rate | Official source / note |
|---|---|---|
| Federal | $7.25/hr | U.S. DOL; a higher state/local rule can apply |
| California | $16.90/hr standard | California DIR; higher local/industry rates exist |
| New York | $17.00 NYC/Long Island/Westchester; $16.00 rest of state | NY DOL |
| Washington | $17.13/hr | WA L&I; local rates may be higher |
| Massachusetts | $15.00/hr standard | Mass.gov |
| Florida | $14.00/hr through Sep. 29, 2026; $15.00/hr starting Sep. 30, 2026 | FloridaCommerce |
| Illinois | $15.00/hr standard | Illinois DOL |
For California fast-food, health-care, and local rates, use the California Minimum Wage 2026 guide. Always verify the rate for the work location and date before treating a calculator result as wages legally owed.
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 $16.90/hour.
| Input | Value |
|---|---|
| Hourly wage paid | $14.00 |
| Legal minimum wage | $16.90 |
| Hours worked | 1,040 hours |
| Shortfall per hour | $2.90 |
| Estimated unpaid wages | $3,016.00 |
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
Federal tip-credit rules are more specific than simply adding tips to an hourly average. Under the FLSA, a covered employer taking a tip credit must pay at least $2.13 in direct cash wages, satisfy notice requirements, and ensure direct wages plus the allowable tip credit meet the federal minimum wage.
- State law can be more protective. Some states require a higher cash wage or prohibit a tip credit.
- Managers and supervisors generally cannot keep employees' tips.
- Tip-pool rules depend on whether the employer takes a tip credit. Do not assume every pool involving a non-tipped worker is automatically unlawful.
Official reference: U.S. DOL Fact Sheet #15 — Tipped Employees. California does not allow a tip credit; see the California tipped-worker section.
Back Wages and Other Remedies
The calculator result is only the direct wage-rate shortfall. Other remedies depend on the law, facts, and filing route.
- Federal FLSA: qualifying minimum-wage cases may involve back wages plus an equal amount as liquidated damages. A two-year limitation period generally applies, extended to three years for willful violations.
- State and local law: additional damages, interest, or penalties may exist, but the rules vary.
- California PAGA: PAGA is a separate civil-penalty process with fact-specific penalties and cure rules. Do not estimate PAGA recovery by simply multiplying a universal $100/$200 amount.
Official references: U.S. DOL — Back Pay · California DIR — PAGA FAQ.
Frequently Asked Questions
Am I underpaid? How do I use this calculator?
Enter the hourly rate you were paid, the applicable minimum wage, and the hours worked at that rate. If the paid rate is lower, the calculator multiplies the hourly difference by the affected hours.
Which minimum wage should I enter?
Use the minimum wage that actually applies to the work date, location, industry, and employee coverage. Federal, state, local, and industry-specific rates can differ, and the more protective applicable rule may be higher.
Does this calculator handle unpaid off-the-clock time?
Not automatically. It calculates a direct hourly-rate shortfall. If time was omitted entirely, use the Unpaid Wages Calculator and separately review whether the unpaid time also creates a minimum-wage issue.
Does this include overtime or penalties?
No. It excludes overtime premiums, liquidated damages, interest, PAGA penalties, and other remedies. Use the Overtime Pay Calculator for a simple overtime estimate.
How far back can federal minimum-wage back pay be recovered?
Under the federal FLSA, the U.S. Department of Labor says a two-year limitation period generally applies, extended to three years for willful violations. State-law deadlines can differ.
How do tipped-worker minimum wage rules work?
Federal law allows a tip credit only if specific requirements are met, including minimum direct cash wages and notice. State law can require a higher cash wage or prohibit tip credits entirely. Use the official rule for your work location.
Is this calculator legally accurate?
It is a mathematical estimator for a direct rate shortfall. It does not determine coverage, exemptions, tip-credit compliance, local rules, damages, penalties, or filing deadlines.
Not sure which calculator fits your situation? See all wage and pay calculators.