Below is an overview of the minimum wage and overtime pay laws that apply to workers in the state of Indiana. Private actions to enforce Indiana’s wage and hour laws and recover unpaid overtime owed to workers are commonly brought by employment law firms such as Gibbons Jones, P.C. If you believe that you have been deprived of the pay that you are legally entitled to, please contact us for a free and confidential review of your situation.
Indiana’s current minimum wage is $7.25 per hour. Employers may pay tipped employees a minimum of $2.13 per hour if the employer can show that the employee receives at least minimum wage when the employee’s tips are added to direct wages.
Non-exempt employees are entitled to overtime pay equaling time and one-half their regular rate of pay if they work over 40 hours in a workweek.
Indiana law does not require employers to provide employees with either paid or unpaid holiday leave. In Indiana, an employer can require an employee to work holidays. An employer does not have to pay an employee premium pay, such as one and one-half times the regular rate, for working on holidays, unless such time worked qualifies the employee for overtime under standard overtime laws. If an employer chooses to provide either paid or unpaid holiday leave, it must comply with the terms of its established policy or employment contract.
In Indiana, employers are not required to provide employees with vacation benefits, either paid or unpaid. However, if an employer chooses to provide these benefits, they must comply with the terms of its established policy or employment contract.
Meals and Breaks
Because Indiana does not have any law requiring an employer to provide a meal period or breaks to employees 18 years of age or older, the federal rule applies. The federal rule does not require an employer to provide either a meal period or breaks. However, breaks lasting less than 20 minutes usually must be paid. Any break lasting over 30 minutes does not need to be paid so long as the employee is free to do as he wish during this break time.
An employer cannot deduct wages from an employees paycheck or fine an employee for any of the following:
- Cash shortages
- Breakage, damage, or loss of the employer’s property
- Required uniforms
- Required tools
- Other items necessary for employment
- Ind. Code 22-2-8
An employer may not deduct or withhold wages from an employee’s wages or accept an assignment from an employee of their wages, unless it is:
- In writing;
- Signed by the employee personally;
- By its terms revocable at any time by the employee upon written notice to the employer; and
- Agreed to in writing by the employer.
Frequency of Wage Payments
An employer must pay employees their wages no less frequently than twice per month. An employer must pay an employee all wages earned within 10 business days of the end of a pay period. Indiana Code 22-2-5
Payment Upon Separation of Employment
- Employees who are fired, discharged or terminated
When an employer discharges or lays off an employee, the employer must pay the employee all wages due by the next regular pay day. Employees who are fired, discharged, or terminated are required to file a wage claim with the Indiana Department of Labor prior to initiating a private lawsuit for unpaid wages. Indiana Code 22-2-9
- Employees who quit or resign
When an employee quits, the employer must pay the employee all wages due by the next regular pay day. Indiana Code 22-2-5
Statute of Limitations
Under Indiana law, unpaid wage claims are subject to a two-year statute of limitations, or recover period. If you do not filed a complaint in court within this timeframe, you will be forever barred from doing so.
Gibbons Legal Group, an Indianapolis-based employment law firm, has extensive experience representing clients throughout Indiana, including all central Indiana counties and the cities of Indianapolis, Bloomington, Evansville, Fort Wayne, Kokomo, Lafayette, Muncie, South Bend, and Terre Haute.