Indiana Labor Laws Guide

Indiana wage laws

When discussing Indiana wage laws, we should mention the following subcategories:

• Indiana minimum wage
• Tipped minimum wage in Indiana
• Subminimum wage in Indiana
• Exceptions to the minimum wage in Indiana
• Indiana payment laws

Indiana minimum wage

When determining the minimum wage, Indiana lawmakers used the provisions of the federal Fair Labor Standards Act (FLSA).

Subsequently, the minimum wage rate in Indiana is $7.25 — the same as the federal minimum wage.

Tipped minimum wage in Indiana

According to a definition provided by the US Department of Labor, a tipped employee is someone who regularly earns more than $30 a month in tips.

Indiana tipped minimum wage is also the same as the federal one — $2.13 per hour.

If the employee total earnings (direct wages plus tips) are lower than the minimum wage, the employer must cover the difference.

It is also the employer's responsibility to keep track of all tips employees receive.

Subminimum wage in Indiana (Training wage)

For employees under 20 years of age, and for the duration of their first 90 calendar days of employment, employers can pay a subminimum wage of $4.25 per hour.

This is the so-called training wage.

Exceptions to the minimum wage in Indiana

There are several exceptions when it comes to types of employees covered by minimum wage laws in Indiana.

These exceptions include the following categories of employees:

• Minors under the age of 16
• Employees with wages based on commissions
• Persons employed by close family members
• Persons performing services for a religious order they are a member of
• Student nurses
• Outside salespersons
• Insurance producers and solicitors
• Persons doing agricultural labor
• Executives, administrators, and professionals working for $150 and more a week

Indiana payment laws

Indiana employers are required to pay wages to their employees at least two times a month.

In addition, regular paydays need to be scheduled no later than 10 days after the end of a pay period for which the wages are due.

Indiana overtime laws

Indiana regulates overtime requirements using provisions from the Fair Labor Standards Act (FLSA).

This act states that every employee who works more than 40 hours in a workweek, unless exempt, is entitled to 1.5 times their regular wage rate in overtime pay.

In Indiana, a workweek is defined as any 168-hour regularly repeating period that does not necessarily correspond to the calendar week.

Overtime exceptions and exemptions in Indiana

In accordance with federal FLSA overtime regulations, the state of Indiana has certain exceptions and exemptions when it comes to overtime requirements.

Thus, under the condition that they earn at least $684 per week, certain categories of workers are not entitled to overtime pay. These include:

• Executives, professionals, administrative staff — including educators and computer workers
• Outside salespersons
• Staff at seasonal amusement and recreation establishments
• Certain commissioned employees
• Taxi drivers

Indiana break laws

When it comes to breaks during the workday, Indiana follows federal break laws.

These do not require that employers provide either rest periods or meal breaks.

However, if the employer offers breaks as an employment benefit, all breaks lasting less than 20 minutes must be paid.

Exceptions to break laws in Indiana (Breaks for minors)

The only break laws in Indiana are concerned with employed minors.

These laws require that all employees under 18 years of age, working 6 or more consecutive hours, must have one or two breaks totalling at least 30 minutes.

Indiana breastfeeding laws

According to Indiana law, all employers must make a reasonable effort to provide their lactating employees with a private location to express milk.

This location cannot be a toilet stall.

Additionally, the employers should attempt to provide a cold storage where the employee can keep their expressed milk for the duration of the workday.

If the employer cannot meet this condition, they must allow the employee to bring their own portable cold storage device for this purpose.

Indiana leave requirements

Different US states have varying leave requirements. Let's see what types of leaves are mandatory, and which ones are optional in Indiana.

Indiana required leave

First, we can go through the types of leaves required by Indiana law.

Jury duty leave

Employees can take unpaid time off to serve jury duty in Indiana, with no retribution allowed by the employer.

However, the employee must notify the employer about their jury duty leave in advance, and may be required to show their jury summons.

Family and medical leave

Under the provisions found in The Family and Medical Leave Act of 1993, Indiana employees are entitled to up to 12 weeks of unpaid leave following major life events.

Some of the types of events that might make employees eligible for family and medical leave in Indiana may include:

• Birth and care for a newborn child
• Adoption or taking in a foster child
• Health condition that prevents the employee from working
• Care for a family member with a serious health condition

This leave is unpaid, but cannot be the cause for employment termination.

Family military leave

Employees whose family members serve in the military can take up to 10 days in a calendar year of unpaid leave> during the following periods:

• Thirty days before active duty orders take effect
• The family member is on a leave of absence from active duty
• Thirty days after active duty orders end

To be eligible for this family military leave, employees must have worked for the same employer for at least 12 months, as well as at least 1,500 hours in the 12 months of employment preceding the leave request.

Furthermore, the employer may require that this leave be taken as a substitute for other paid leave, excluding medical or sick leave.

Indiana non-required leave

And here we have the types of leave not required by Indiana law.

Sick leave

As of 2022, no laws require that employers provide sick leave for their employees.

Bereavement leave

Unless specifically stated in their mutual contract, Indiana employers do not need to provide bereavement leave.

Vacation and holiday leave

The same rule applies here — unless specifically stated in their contract, employees are not entitled to vacation or holiday leave.

Voting time leave

No federal or state regulations in Indiana are concerned with providing voting time off.

Child labor laws in Indiana

There are specific laws concerning wages, hours, and other terms of employment for minors in Indiana.

Here they are, separated into different age categories.

Labor laws for minors aged 14 and 15

When school is in session, minors aged 14 and 15 can work 3 hours per day or 18 hours in a week.

Otherwise, they can work up to 8 hours per day or 40 hours per week when school is out.

This age group can work from 7 a.m. to 7 p.m. during the school year, but from June 1st to Labor Day, these hours can be extended until 9 p.m.

Labor laws for minors aged 16

Minors aged 16 can work the following hours without written parental permission:

• 8 hours on a school day
• 30 hours in a week, or up to 6 days in a week
• Until 10 p.m. on nights followed by a school day

If the minor provides a written parental permission to the employer, they can work under the following conditions:

• Up to 9 hours on days not followed by a school day
• Up to 40 hours during a school week
• Up to 48 hours while school is out of session
• Until 12 a.m. on nights not followed by a school day

Additionally, no minor aged 16 can work before 6 a.m., regardless of having parental permission.

Labor laws for minors aged 17

Similarly to the previous age group, 17-year-olds do not need parental permission to work:

• 8 hours per day
• 30 hours in a week, or up to 6 days in a week
• Until 10 p.m. on nights followed by a school day

However, once they've provided written parental permission to their employer, these minors can work:

• Up to 9 hours on days not followed by a school day
• Up to 40 hours during a school week
• Up to 48 hours on a non-school week
• Until 11:30 p.m. on nights followed by a school day
• Until 1 a.m. on nights followed by a school day, but not on consecutive days, and no more than 2 days per school week

Minors aged 17 should not work before 6 a.m. on school days.

In addition, all minors working in establishments open to the public after 10 p.m. and before 6 a.m. need to be accompanied by a coworker who is at least 18 years old.

Prohibited occupations for minors

Special laws apply to minors which forbid them from working in dangerous environments and occupations.

According to Indiana legislation, these hazardous occupations include:

• Manufacturing goods
• Mining
• Working with power-driven machinery
• Working in boiler or steam rooms
• Operating a motor vehicle
• Preparing meats for sale
• Construction

Hiring laws in Indiana

Covering employers with six or more employees, the Indiana Civil Rights Act prohibits hiring practices which discriminate on the basis of:

• Race or color
• Religion
• Sex
• National origin or ancestry
• Disability
• Military veteran status

Other federal and state acts prohibit age discrimination for individuals over the age of 40.

If you suspect any discrimination has occurred, it's best that you check in with the local authorities for further guidance.

Indiana Right-to-work law

There are laws aimed at limiting the influence of union organizations in 28 US states, including Indiana.

These are the so-called "Right-to-Work" legislations, and their main goal is to make it illegal to require union membership as a condition of employment.

Additionally, before charging any representation fees, Indiana law requires unions to obtain written approval from employees.

Termination laws in Indiana

Indiana is one of the states in the United States that follows the "employment-at-will" doctrine.

This means that the work relationship can be terminated at any moment and for any cause.

Either party has the right to terminate the employment relationship at any time, and no notice or argumentation is required.

Final paycheck

Once the employment relationship has been terminated, the employer is required to pay the employee their wages by the next regularly scheduled payday.

If an employee quits and the employer is unaware of his or her whereabouts, the employer must either pay the employee within 10 days after the employee's demand for final wages, or when the employer receives an address to which the final earnings can be sent.

Indiana COBRA laws

Upon termination, the employee may be entitled for extended health insurance under the Consolidated Omnibus Budget Reconciliation Act (COBRA).

The following major life events may qualify employees or their dependents for COBRA coverage:

• Termination or a considerable reduction in work hours
• Employee death
• Legal separation or divorce
• Loss of the status of a dependent child

Employees or their families can have their health insurance (which they must still pay in full) extended for 18 to 36 months if they are found to be eligible.

Occupational safety in Indiana

The Indiana branch of Occupational Safety and Health Administration regulates how hazardous substances are to be handled in the workplace, as well as the standards for training and behaving in dangerous work environments.

If you have any concerns about potentially dangerous workplace practices, you can file a complaint with the IOSHA, and they will conduct a workplace investigation.

Miscellaneous Indiana labor laws

In this segment, we will review some of the miscellaneous Indiana labor laws that do not strictly fit into the previously mentioned categories.

We will consider the following laws:

• Whistleblower protection laws
• Background check laws
• Laws concerned with employer use of social media
• Drug and alcohol testing laws
• Record keeping laws

Whistleblower protection laws

No employer can take adverse action against a worker engaging in an activity protected by the Indiana Whistleblower Protection Unit.

Some examples of adverse employment actions may include:

• Termination
• Demotion
• Denying overtime or promotions
• Denial of benefits
• Disciplinary action
• Harassment or intimidation

Background check laws

Ruled by executive order, Indiana employers must give job applicants a “fair chance” for being hired.

In effect, this means that employers cannot ask the job candidates about their criminal history during their initial job application.

However, local cities and counties can call upon the Indiana code and choose to allow employers to do this — it is best to check with the local authorities which laws apply.

Additionally, there are occupations where background checks are required, and these include:

• Employees in childcare facilities
• Home health agency personnel
• Employees of personal services agencies
• School teachers

Employer use of social media regulations

Indiana has no legislation covering or protecting employee use of social media.

This means that content posted on social media can be legally accessed by the employer, and can, in some cases, be considered as cause for termination.

Drug and alcohol testing laws

There is no legislation that would prevent Indiana employers from conducting random drug and alcohol testing of their employees.

There is, however, an exception where drug and alcohol testing is required — employees with a Commercial Driving License (CDL).

Record-keeping laws

According to Indiana law, employers must keep employee records for up to 3 years.

There are no specific requirements for the format or form these records are kept in.

Employee information kept in the records should include:

• Employee's name
• Occupation
• Home address
• Sex
• Date of birth (if under 19)
• Hour and day of the beginning of the workweek
• Total hours worked each workday and workweek
• Total daily or weekly straight-time earnings
• Regular hourly pay rate
• Total amount of overtime pay per workweek
• Any wage deductions
• Total wages for each pay period
• Date of wage payment along with pay period covered

Conclusion/Disclaimer

We hope this Indiana labor laws guide has been helpful. We advise you to make sure you've paid attention to the links we've provided, as most of them will lead you to the official government websites and other relevant information.

Please note that this guide was written in Q1 2022, so any changes in the labor laws that were included later than that may not be included in this Indiana labor laws guide.

We strongly advise you to consult with the appropriate institutions and/or certified representatives before acting on any legal matters.

Clockify is not responsible for any losses or risks incurred, should this guide be used without further guidance from legal or tax advisors.

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