Minimum Wage Compliance Calculator
Check whether your employees are paid at or above the applicable minimum wage and calculate any wage deficit or surplus.
Formulas Used
- Effective Hourly Rate (hourly): Rate entered directly.
- Effective Hourly Rate (weekly salary): Weekly Salary ÷ Hours Per Week
- Effective Hourly Rate (annual salary): Annual Salary ÷ 52 ÷ Hours Per Week
- Difference: Effective Hourly Rate − Applicable Minimum Wage
- % Above/Below: (Effective Rate − Minimum Wage) ÷ Minimum Wage × 100
- Weekly Deficit: |Difference| × Hours Per Week (when non-compliant)
- Annual Deficit: Weekly Deficit × 52 × Number of Employees
- Tip Credit: Minimum Wage − Cash Wage Paid = Tip Credit Claimed (tips must cover this gap)
Assumptions & References
- Federal minimum wage: $7.25/hr (FLSA, 29 U.S.C. § 206). Unchanged since July 24, 2009.
- State minimum wages reflect 2024–2025 rates; some states index annually to CPI. Always verify the current rate with your state labor department.
- Where a state rate equals the federal rate, the federal rate applies.
- The federal minimum cash wage for tipped employees is $2.13/hr (29 U.S.C. § 203(m)). Many states have higher cash wage floors or prohibit tip credits entirely.
- Overtime (hours > 40/week) is not calculated here; overtime compliance is a separate FLSA requirement.
- This calculator does not account for local (city/county) minimum wages, which may exceed state rates (e.g., Seattle, NYC, San Francisco).
- Salary-basis test for exempt employees under FLSA white-collar exemptions is not evaluated here.
- Results are estimates for informational purposes only and do not constitute legal advice. Consult an employment attorney or your state Department of Labor for compliance guidance.
- References: DOL State Minimum Wage Laws; FLSA Overview.