Methodology & Sources
WageCoach implements the federal Fair Labor Standards Act (FLSA)and each state's 2026 wage and hour rules. This page is the single source of truth for the numbers the calculators use, with every source cited. It is general information, not legal advice.
Federal constants (FLSA)
| Federal minimum wage | $7.25/hr (since 2009) |
| Tipped cash wage / max tip credit | $2.13 / $5.12 |
| Overtime | 1.5× over 40 hrs/workweek |
| Exempt salary threshold | $684/week = $35,568.00/yr |
The 2024 rule raising the exempt threshold was vacated nationwide on Nov 15, 2024 (Texas v. DOL), reverting to the $684/week (2019) level. The salary test is paired with a duties test.
How overtime is computed
Regular hours up to 40 in a workweek are paid at the regular rate; hours over 40 at 1.5× (or 2× for the double-time preset). For daily-overtime states we compute per-day overtime and reconcile with the weekly 40-hour rule without pyramiding (hours already paid as daily overtime are not counted again toward the 40).
- Daily overtime states: Alaska, California, Colorado, Nevada. California also has double time (over 12 hrs/day and beyond 8 on a 7th consecutive workday).
- No-tip-credit states (full minimum wage paid in cash before tips): Alaska, California, Minnesota, Montana, Nevada, Oregon, Washington.
State data & sources
2026 state minimum and tipped wages are cross-checked across the U.S. Department of Labor and reputable payroll/compliance trackers (GovDocs, Paycom, Paycor, Ogletree). Final-paycheck deadlines and meal/rest-break rules are compiled from state labor-department (.gov) pages and cross-referenced with Rippling, Patriot Software and the TimeClick break-law guide. Each state page links the figures back to these sources.
What this tool does not do
It does not calculate income-tax withholding or net (take-home) pay, and it does not replace legal advice. Local ordinances (many cities set higher minimums), industry-specific rules, union contracts and individual circumstances can change the result. Always confirm with your state labor department or an employment-law professional before a payroll or legal decision.