Indiana Labor Law Guide

Wage and Hour Laws

Minimum Wage

Indiana follows the federal minimum wage of $7.25 per hour. 

The minimum wage law applies to any employer with 2 or more employees. It doesn’t apply to any employer covered by the minimum wage provisions under the federal Fair Labor Standards Act (FLSA).

There are some exceptions to Indiana’s minimum wage. For example, employers can pay employees under 20 years old $4.25 per hour for the first 90 days of their employment. Indiana’s minimum wage law doesn’t apply to various other employees, including:

• Employees under 16.
• Employees paid on commission.
• Agricultural workers.

Tipped Minimum Wage

The hourly tipped minimum wage in Indiana is $2.13. Employers can pay employees $2.13 per hour only if their combined wages and tips add up to the minimum wage of $7.25 per hour. 

The tipped minimum wage applies only to tipped employees—employees who customarily and regularly receive more than $30 in tips monthly. 

Tip pooling is allowed for restaurant employees in Indiana under the following conditions:

• Only employees who contribute to the chain of service can be in the tip pool. 
• Employers can’t take a percentage of tips.
• Employers must allocate tips fairly and reasonably. 

Overtime Laws

Under the Indiana Minimum Wage Law, employers must pay non-exempt workers 1.5 times their regular hourly rate for any hours over 40 in a workweek. 

There are various exceptions to this overtime requirement. For example, employees don’t have to pay overtime to the following employees:

• Employees under 16. 
• Workers employed by their parent, spouse, or child. 
• Executive, administrative, and professional employees who have the authority to hire or fire employees and earn $150 or more a week. 

Employers can require employees to work overtime as long as no employment contract or collective bargaining agreement states otherwise. There are no minimum notice requirements for overtime. 

Meal and Rest Breaks

Indiana doesn’t have any laws regarding meal and rest breaks. 

Where an employer offers breaks, the federal FLSA may apply. This requires covered employers to pay employees for short breaks of 20 minutes or less. Employees don’t have to be paid for longer breaks as long as they don’t perform any work duties during this time. 

Payday Frequency and Method

Employers can pay employees semi-monthly or bi-weekly if requested by the employee.

Employers can pay their employees by check, draft, money order, or electronic bank transfer. 

Wage Deductions and Garnishments

Employees can elect to make certain deductions—called assignments of wages—from their pay, including for:

• Buying uniforms or equipment required for work, up to a certain amount. 
• Education or skills training.
• A payroll or vacation pay advance.
• Merchandise, goods, or food offered by the employers.
• An insurance premium on a policy held by the employer for the employee.
• Charitable donations.

Assignments of wages must be made in writing, signed by the employee, and agreed to in writing by the employer. The employee must also be able to stop the deduction in writing at any time. 

Employers can also deduct overpayments from employees’ wages. The employer must give the employee 2 weeks’ notice. They can’t deduct whichever of these 2 amounts is less: 

• An amount that exceeds 25% of the employee’s weekly disposable earnings.
• The amount by which the employee’s disposable weekly earnings exceed 30 times the federal minimum wage. 

Employers who pay employees late or withhold wages can be liable for the wages, the employee’s attorney fees, court costs, and—where the employer acted in bad faith—damages up to 2 times the wages owed to the employee.  

Garnishments in Indiana can’t exceed whichever of these 2 options is less:

• 25% of the employee’s disposable weekly earnings—or, if the employee can show a good reason for why this amount should be less, between 10-25% of their disposable weekly earnings. 
• The amount by which the employee’s disposable weekly earnings exceed 30 times the federal minimum wage.  

Employers can’t terminate an employee based on 1 or more wage garnishments. 

Recordkeeping

There are no recordkeeping laws regarding wages and hours for private employers at the state level. Indiana employers may be subject to the recordkeeping requirements under the federal FLSA. 

Employee Compensation and Benefits

Final Paycheck Laws

Employers must pay employees their final paycheck on or before their next regular payday. 

Employers who fail to do so may face civil lawsuits and be required to pay liquidated damages up to double the amount of the paycheck plus attorney costs. 

Reporting Time Pay

Employers in Indiana must pay employees for time worked. If an employee is sent home early from a shift, the employer has to pay them for the hours they worked only. 

Paystub Requirements

Employers covered by the Indiana Minimum Wage Law must provide all employees 16 years and older with a pay statement for each pay period that includes:

• The hours they worked. 
• The wages they received. 
• Any deductions from their wages. 

The employer can choose the format of the pay statement, including electronic or hard copy. 

Employee Scheduling Laws

Indiana has no predictive scheduling laws or advance notice requirements at the state level. Counties, municipalities, and townships can’t introduce scheduling policies that exceed federal or state laws. 

Workers’ Compensation

Most Indiana employers are required to have workers’ compensation insurance. 

Workers’ compensation provides injured workers with medical, rehabilitation, and lost wage benefits, including benefits for:

• Temporary total disability.
• Temporary partial disability.
• Permanent partial impairment.
• Permanent total disability.

The amount of benefits an employee receives depends on various factors, including the type of injury or illness and their wages before the injury. There are also limits for employees on the number of weeks they can receive each type of compensation.

Employees don’t need to prove their injury was the employer’s fault to receive workers’ compensation. However, they must notify their employer of any workplace injury or illness as soon as possible and within 30 days. 

The Worker’s Compensation Board of Indiana offers mediation services and hears worker compensation disputes. Employees can request informal dispute resolution or a formal hearing. 

An employee must file a request for a formal hearing (called an Application for Adjustment of Claim) within 2 years of the workplace injury. This hearing takes place before a Single Hearing Member of the Worker’s Compensation Board. The employer or employee can appeal the decision of the Single Hearing Member to the full Workers’ Compensation Board. Subsequent appeals go to the Court of Appeals and the Supreme Court of Indiana. 

Unemployment Insurance

Any Indiana employer that pays wages to 1 or more workers must pay unemployment insurance premiums or reimburse the state for benefits paid. To facilitate this, employers must register with the Department of Workforce Development (DWD), which administers unemployment compensation in Indiana. 

Employers pay unemployment insurance premiums on the first $9,500 of wages for each employee annually. The rates of unemployment insurance premiums vary. For example, the rate for most new employers is 2.5%. 

Unemployed workers may be entitled to unemployment benefits. To be eligible, individuals must:

• Have earned a minimum amount of wages during a specific period. 
• Be unemployed through no fault of their own. 
• Be able and available to work—and actively looking for work. 

Unemployment benefits are available to eligible individuals for up to 26 weeks or until their maximum benefit amount (26 times their weekly benefit amount) is reached.

The maximum weekly benefit amount in Indiana is currently $390. 

Individuals can apply for unemployment benefits using Indiana’s online system or at a WorkOne Career Center. To make benefits claims, individuals must provide information, including:

• The name, address, and phone number of their last employer. 
• Their dates of employment. 
• Their contact details and social security number. 

If an individual or employer disagrees with an unemployment benefits decision, they can appeal to the DWD within 10 days for a hearing before an administrative law judge. Further appeals go to the Unemployment Insurance Review Board and the Indiana Court of Appeals. 

Workplace Rights and Protections

Discrimination and Harassment

Employers in Indiana with 6 or more employees can’t discriminate against candidates or employees based on these protected characteristics:

• National origin. 
• Ancestry. 
• Race. 
• Color. 
• Religion. 
• Gender. 
• Veteran status. 

There are some limited exemptions to this. For example, this law doesn’t apply to religious nonprofit organizations. 

Employers with 15 or more employees are also prohibited from discriminating based on disability. These employers must also allow pregnant employees to request reasonable accommodations and can’t retaliate against employees who do so. 

All employers are also prohibited from discriminating against individuals who are 40-75 years old based on their age. 

Federal anti-discrimination law may also apply to certain employers. 

Age discrimination claims must be made to Indiana’s Department of Labor (for employers with 20 or fewer employees) or the federal Equal Employment Opportunities Commission (EEOC) (for employers with more than 20 employees). 

If individuals believe they’ve been subject to employment discrimination based on another protected characteristic, they can file a claim with the Indiana Civil Rights Commission (ICRC) or EEOC. The ICRC and EEOC have cross-filing arrangements, meaning individuals need to file a claim with 1 commission only. 

Whether an individual makes a claim under state or federal law depends on factors like the nature of the complaint, the size of the employer, and the available remedies. 

Individuals can file a claim with the ICRC over the phone, by mail, in person, or online through the Indiana Civil Rights Portal. They must file claims within 180 days of the alleged discriminatory event. 

The ICRC reviews claims and assists individuals in preparing discrimination complaints. The ICRC investigates these complaints and issues findings. 

Potential remedies available for a successful employment discrimination claim include back or front pay, promotion, and reinstatement. Employers can also be required to make reasonable accommodations for individuals with disabilities. 

Individuals can also file a discrimination lawsuit after the ICRC or EEOC has investigated their claim.  

Employers can’t retaliate against employees who file a discrimination claim or lawsuit. 

Leave Laws

✓ Family and Medical Leave	There’s no general state family and medical leave act in Indiana.  However, under state law, employers in Indiana with 50 or more employees must give Military Family Leave to eligible employees. This leave allows employees who are the spouses, parents, children, siblings, or grandparents of someone serving active duty to take up to 10 days leave a year:In the 30 days before the family member leaves for active duty. While the family member is on active duty. In the 30 days after the family member returns from active duty.  To be eligible for this leave, employees must have been employed for at least 12 months and worked at least 1,500 hours in the last year. Employees must also give written notice of their intention to take this leave at least 30 days before the leave starts—unless their family member is called to active duty at shorter notice.  Employers can require employees—or employees may choose—to use other accrued paid leave, apart from paid sick or medical leave, for this purpose instead.  Employers must restore employees returning from family military leave to the same position they had when they went on leave—or an equivalent position.  The federal Family Leave and Medical Act (FMLA) also applies to employers in Indiana with 50 or more employees.  The FMLA allows eligible employees to take up to 12 weeks of unpaid, job-protected leave each year to:Deal with their own serious health condition. Care for an immediate family member with a serious health condition. Care for a new child.  To be eligible for FMLA leave, employees must have worked at least 1,250 hours with their employers in the past 12 months at a location with at least 50 or more employees within a 75-mile radius.
𐄂 Paid Sick Leave	Indiana employers aren’t required to provide paid sick leave.  Where they choose to do so, the leave should follow the relevant employment contract or collective bargaining agreement terms.
𐄂 Paid Family Leave	There is no mandatory paid family leave in Indiana.
𐄂 Pregnancy and Parental Leave	Employers don’t have to provide pregnancy or parental leave. Eligible employees may be able to access federal FMLA leave for this purpose.
𐄂 Vacation and Personal Leave	Indiana employers aren’t required to provide employees with paid vacation and personal leave. However, many choose to do so. Employers should comply with the relevant terms of any employment contracts or collective bargaining agreements where they offer vacation leave.

Military, Jury Duty, and Other Mandatory Leave

There are several other types of mandatory leave in Indiana.

Military Leave	Employers must give members of the Indiana National Guard leave for active duty. This leave doesn’t have to be paid.  Employees who are reserve members of the US armed forces are also entitled to up to 15 days of military training leave. Employers can choose to offer paid or unpaid military training leave.  To access this leave, employees must provide evidence of their leave dates as soon as practicable and proof of training completion upon their return. Employers must restore employees to their original or equivalent positions upon their return.
Civil Air Patrol Leave	Employers are prohibited from disciplining employees who are members of the Indiana Civil Air Patrol and require leave for an emergency service operation.  Employees must have notified their employer of their civil air patrol status in writing prior to the operation to be eligible for this leave. In addition, the operation must have started before the employee reported to work. If it starts afterward, an employee can still take this leave if their supervisor authorizes it.
Jury Duty Leave	Employers can’t take adverse employment action against employees who attend jury service as long as employees provide reasonable notice. Employers don’t have to provide paid jury duty leave and can’t require employees to use accrued personal, vacation, or sick leave.  If 2 employees from a business with 10 or fewer employees are required for jury service, the court will reschedule to ensure they serve at different times.
Witness Leave	Employers can’t retaliate or threaten to retaliate against employees who respond to subpoenas to be witnesses in criminal trials.
Emergency Responder Leave	Employers can’t discipline employees who are volunteer firefighters or medical service responders and take leave for the following reasons:To respond to an emergency call before they’re due to report to work. To respond to an emergency call with their supervisor’s permission after they’ve reported to work. For an injury sustained in the course of providing an emergency response (up to 6 months).  To be eligible for this leave, employees must have previously notified their employers that they’re volunteer firefighters or medical service responders.

Child Labor Laws

Employers can generally employ minors aged 14 years and older only. There are some limited exceptions to this. 

Indiana doesn’t require employers to obtain work permits for minors. However, employers with 5 or more employees under 18 must register with Indiana’s Youth Employment System (YES). Penalties for failing to register are between $100 and $400. 

Indiana employers who violate other child labor laws can face civil penalties ranging from $50 to $400. 

	14 and 15-year-olds	16 and 17-year-olds
When school is in session	Can’t work before 7am or after 7pm.Can’t work more than 3 hours on a school day and 18 hours in a school week.Can’t work during school hours.	Can’t work:Over 9 hours in a day. Over 40 hours in a school week. Over 48 hours in a non–school week. Over 6 days in a week.Before 6am. Can work:Until 10pm on a school night (except in dangerous occupations).Until 11pm on a school night with written permission from their parents.The same hours as adult employees if they’ve graduated high school, completed a career and technical education program or special education program, or aren’t enrolled in school. A minor who works after 10pm or before 6am in a workplace open to the public must work alongside an adult employee during those hours.
When school isn’t in session	Can work until 9pm from June 1 to Labor Day—except for days before a school day.Can’t work more than 8 hours on a non-school day and 40 hours in a non-school week.
	Changes to work hour restrictions for 16 and 17-year-olds will commence January 1, 2025.  For example, changes will allow minors who are 14-16 years old to work beyond 7pm before a school day from June 1 to Labor Day. For more information, see House Bill No. 1093.
Limits on types of work	Minors can’t work in occupations that are defined as hazardous under the federal FLSA.  A complete list of prohibited and hazardous occupations for minors and their exceptions is available on the Indiana Department of Labor’s website.

Workplace Safety and Health

Indiana has a state plan (IOSHA) approved by the federal Occupational Safety and Health Administration (OSHA). As a result, Indiana adopts the same standards as required by the federal Occupational Safety and Health Administration Act. IOSHA can’t adopt stricter standards than those at the federal level. 

IOSHA applies to all employers in Indiana. It’s administered by the Department of Labor, which has the authority to conduct workplace inspections, investigate IOSHA-related complaints, and issue penalties to employers who fail to comply with safety and health standards. 

Under IOSHA, employers must provide employees with a safe workplace free from serious hazards. Employer duties include:

• Educating employees about known hazards and using systems like labels and information sheets. 
• Eliminating or reducing known workplace hazards. 
• Providing employees with personal protective equipment. 
• Reporting any work-related deaths to IOSHA within 8 hours and any incidents causing hospitalization, amputation, or loss of an eye within 24 hours. 
• Displaying an IOSHA poster in the workplace. 
• Maintaining compliance records, including injury logs and report forms. 
• Not retaliating against employees who make complaints to IOSHA. 

Employees also have various rights under IOSHA, including the rights to:

• Access information about a workplace’s hazards. 
• View their employer’s injury and illness records.
• Receive training in languages they can understand.

Employees also have the right to file formal and non-formal complaints with IOSHA. A formal complaint must be made in writing and signed, whereas an informal complaint can be made anonymously. Complaints can be made by phone, mail, fax, email, or on IOSHA’s website. 

Labor Union Regulations

Indiana is a right-to-work state. This means that employers can’t require employees to join labor unions or pay union fees as conditions of employment. Violations of this rule may result in criminal charges and penalties. 

The National Labor Relations Act applies to most Indiana employers. The National Labor Relations Board (NLRB) office in Indianapolis serves most of Indiana, except for Clark, Dearborn, Floyd, and Lake Counties. The NLRB investigates allegations of unfair labor practices and hears labor disputes. 

Employment Contracts and Severance

Employment Contract Laws

Indiana is an at-will employment state. This means the employer or employee can terminate the relationship at any time and for any lawful reason unless an employment contract or collective bargaining agreement says otherwise. 

Employment contracts in Indiana can be written, oral, or implied by the words and actions of the party. 

Non-compete and non-solicitation clauses are technically allowed but discouraged under Indiana law. To be enforceable, these clauses must meet strict criteria. They must be reasonable in scope, time, and geography and designed to protect the employer’s legitimate business interests. 

Indiana has specific laws that make non-compete agreements for physicians unenforceable in some situations. 

Severance Pay

Indiana employers aren’t obligated to provide severance pay. Where they do, they must follow the relevant terms of the employment contract, company policy, or collective bargaining agreement. 

Additional Laws That Might Apply to You

Here are several other miscellaneous employment laws in Indiana. 

Lactation Laws	Employers with at least 25 employees must do the following (within reason):Provide employees with a private place other than a toilet cubicle to express milk while on a break. Provide employees with a fridge to store expressed milk. Allow employees to bring their own portable cold storage device to keep expressed milk.
Background Check Laws	Indiana employers can request limited criminal histories of applicants and employees from law enforcement.  Cities and counties are prohibited from introducing local ban-the-box laws.
Whistleblower Protection Laws	Private employers under public contract can’t take adverse employment action against employees who report breaches of rules, laws, or ordinances or the misuse of public resources.

COVID-19 Related Laws and Regulations

Indiana employers can’t require employees to get a COVID-19 vaccination unless they allow employees to apply for exemption based on medical or religious reasons or because they have immunity from previously contracting COVID-19.  Employers can require employees claiming an exemption to provide supporting documentation. 

Employees exempt from vaccination based on the above reasons can be required to submit to COVID-19 testing 2 times a week at most. Employers can require testing only in circumstances where the test:

• Has Food and Drug Administration (FDA) approval. 
• Is the least invasive testing method available. 
• Doesn’t put an excessive burden on the employee who will receive the test. 

The Department of Labor provides a list of COVID-19 resources for employers on its website. 

Navigating Legal Issues and Resources

Many of the government departments that administer employment laws provide resources on their websites, including the following:

• The Department of Labor provides resources on wage issues, age discrimination, and workplace safety and health.
• The Department of Workforce Development provides resources on unemployment insurance.
• The Worker’s Compensation Board of Indiana provides resources on disputes, compliance information, and more.

The Indiana Chamber of Commerce sells an Employment Law Handbook for employers. 

Useful resources for employees looking for legal advice include:

• The Indiana Legal Help website can help users find free and affordable employment law assistance. 
• The Indiana State Government’s Self-Service Legal Center includes links to ask legal questions online and find lawyers. 

Indiana labor laws are complex and change regularly. Federal labor laws may also apply. For these reasons, you must get legal advice specific to your situation. 

Disclaimer

The information presented on this website about Indiana labor laws is a summary for informational purposes only and is not intended as legal advice. Laws and regulations regularly change and may vary depending on individual circumstances. While we have made every effort to ensure the information provided is up to date and reliable, we cannot guarantee its completeness, accuracy, or applicability to your specific situation. Therefore, we strongly recommend that readers seek guidance from their legal department or a qualified attorney to ensure compliance with applicable laws and regulations. Please note that we cannot be held liable for any actions taken or not taken based on the information presented on this website.