(650) 332-8623Indiana Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More for 2025
Let’s take a deep dive into Indiana labor laws, with details on all the important aspects of the state’s regulations on your employees.
What’s New in 2025?
Indiana Meals and Breaks
No LawFor Lunch Breaks
No mandated meal break for adult employees, leaving it up to the employer’s discretion.
Minors (< 18): Must receive a 30-minute meal break if working for 6 or more consecutive hours.
No LawFor Rest Breaks
Indiana law does not require employers to provide rest breaks for adult employees.
If provided, short rest breaks of 5 to 20 minutes typically must be paid under federal law.
Indiana Leave and Paid Time Off (PTO)
Employers are not required by Indiana law to offer paid sick leave. The decision to offer it is left to the employer’s discretion and internal policies.
Indiana does not have its own state family leave law, but employees may be eligible for unpaid, job-protected leave under the federal Family and Medical Leave Act (FMLA).
FMLA allows workers to take leave for specific family and medical reasons without fear of losing their job. This applies to employers with 50 or more employees and provides up to 12 weeks of unpaid leave in a 12-month period for qualifying reasons.
Employees are eligible for FMLA if they have:
- Worked for their employer for at least 12 months
- Accumulated at least 1,250 hours of work during the 12 months prior to the leave.
Qualifying reasons for leave:
- The birth or adoption of a child.
- Caring for an immediate family member (spouse, child, or parent) with a serious health condition.
- A serious personal health condition that prevents the employee from performing their job.
- Qualifying exigencies related to a family member’s active duty military service.
Indiana law does not require employers to provide bereavement leave, either paid or unpaid.
The amount of bereavement leave (if any) is determined by individual employers. Most companies that offer it allow 3 to 5 days of leave for the death of an immediate family member.
Indiana law does not mandate vacation leave. Employers can choose whether or not to offer it as part of their employee benefits.
Indiana does not require employers to give employees time off on holidays. Whether employees are given paid or unpaid leave on holidays is determined by the employer’s internal policies.
Indiana law requires employers to provide unpaid leave for employees who are called to serve on a jury.
Employees cannot be penalized for fulfilling their civic duty, and employers are prohibited from taking adverse action (such as demotion, termination, or disciplinary measures) against employees for attending jury duty.
Employers may voluntarily provide voting leave, but it is not legally required. Some employers choose to give employees time off or allow flexibility in scheduling to accommodate voting, though this is not mandated.
Military leave applies to employees who are members of the Indiana National Guard, U.S. Armed Forces, Reserves, or are called to active duty for military service, training, or emergencies.
Indiana state employees are entitled to 15 days of paid military leave per calendar year for military training or active duty. This benefit is available without loss of time, pay, or efficiency rating.
Indiana provides family military leave under specific conditions to support family members of active-duty military personnel.
Eligibility: To qualify for family military leave, an employee must:
- Have worked for the employer for at least 12 months and
- Have worked at least 1,500 hours in the 12 months before taking the leave.
- Be the spouse, parent, grandparent, child, or sibling of a person called to active duty in the U.S. Armed Forces or National Guard.
Leave Duration: Eligible employees can take up to 10 days of unpaid leave per calendar year. The leave can be used during:
- The 30 days before active duty orders take effect,
- During the time the service member is on leave while under active duty orders, or
- The 30 days following the termination of active duty.
Indiana law provides leave for employees who are members of the Indiana Wing of the Civil Air Patrol to participate in emergency service operations.
This unpaid leave allows employees to respond to emergencies without facing penalties at work, as long as they follow the necessary procedures.
Indiana provides unpaid Emergency Response Leave to employees who are volunteer firefighters, members of a volunteer emergency medical services (EMS) association, or similar emergency service volunteers. This leave allows them to respond to emergencies without fear of job termination or other adverse employment actions.
Read more about state-specific labor laws:
- Louisiana Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More (2025)
- Maine Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More (2025)
- Colorado Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More (2025)
- South Dakota Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More (2025)
- Tennessee Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More (2025)
- Georgia Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More for 2025
- Kansas Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More (2025)
- Maryland Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More (2025)
- Texas Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More for 2025
- Utah Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More for 2025
- Mississippi Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More (2025)
- Pennsylvania Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More (2025)
Indiana Wages and Overtime
$7.25/hourMinimum Wage
Indiana’s minimum wage is $7.25 per hour, which matches the federal minimum wage rate under the Fair Labor Standards Act (FLSA).
1.5x HourlyOvertime Rate
Employees must be paid 1.5 times their regular hourly rate for any hours worked beyond 40 hours in a workweek.
Starting January 1, 2025, the salary threshold for overtime eligibility will increase to $58,656 annually, expanding overtime protection to a larger number of salaried employees.
$2.13/hourTipped Minimum Wage
Employers are required to pay tipped employees a minimum of $2.13 per hour as long as the employee earns enough tips to reach the regular minimum wage of $7.25 per hour.
If an employee’s combined hourly wage and tips do not equal this amount, the employer must make up the difference.
FlexiblePay Frequency
Indiana law allows employers to pay their employees on a weekly, bi-weekly, semi-monthly, or monthly basis. Employers and employees can agree on the specific pay schedule, giving businesses flexibility in how they structure payments.
Indiana does not have any local minimum wage laws that exceed the state or federal minimum wage. This means that across all cities and counties in Indiana, the minimum wage remains at the state rate of $7.25 per hour, which is aligned with the federal minimum wage.
- Tipped Employees: Employers can pay tipped employees a base wage of $2.13 per hour. The employee’s combined hourly wage and tips must equal at least $7.25 per hour.
- Training Wages: Employees under the age of 20 may be paid a training wage of $4.25 per hour for the first 90 consecutive days of employment.
- Student Learners: High school or college students working in a bona fide vocational education program can be paid no less than 75% of the federal minimum wage, which comes to $5.44 per hour.
- Workers with Disabilities: Under Section 14(c) of the FLSA, employers may pay workers with disabilities a commensurate wage, which is based on their productivity in comparison to workers without disabilities performing the same tasks.
Indiana follows both federal and state guidelines for minimum wage exemptions.
- Executive, Administrative, and Professional Employees: Exempt from both minimum wage and overtime pay if they meet specific criteria related to their job duties and salary, such as managing personnel or performing specialized tasks.
- Agricultural Workers: May be exempt from minimum wage requirements, especially if they work for small farms or perform seasonal tasks like cultivating or harvesting.
- Outside Sales Employees: Employees whose primary duty involves making sales or obtaining contracts outside the employer’s place of business are exempt from minimum wage and overtime pay requirements.
- Workers Paid on a Commission Basis: May also be exempt from minimum wage if their compensation is entirely commission-based.
- Family Employment and Religious Exemptions: Employees working for their parents, spouse, or children, as well as members of religious orders performing services for their organization, are exempt from minimum wage requirements.
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Indiana Prevailing Wages
Indiana no longer enforces a state-specific prevailing wage law, as the Common Construction Wage Act was repealed effective July 1, 2015.
However, contractors working on public works projects awarded prior to that date are still required to comply with the established wage and fringe benefit rates for the duration of those projects.
For all other public works projects initiated after the repeal, there is no state-mandated prevailing wage, except in cases where federal funding applies. These projects are governed by the Davis-Bacon and Related Acts, which set locally prevailing wage rates for federally funded projects.
Key Resources on Prevailing Wages:
- Indiana Department of Labor – Common Construction Wage Overview: This page offers an overview of Indiana’s Common Construction Wage Act, including details on compliance for projects awarded before the July 1, 2015, repeal and requirements for contractors after the repeal.
- Davis-Bacon and Related Acts – U.S. Department of Labor: A comprehensive resource explaining the Davis-Bacon Act, which applies to federally funded or assisted construction projects, including requirements for contractors to pay prevailing wage rates and ensure compliance with wage standards.
Indiana Child Labor Laws
Indiana has specific regulations in place to protect minors in the workforce, ensuring their health, safety, and education are not compromised by employment.
<14 Years
Laws in Indiana for children under 14:
Children under 14 are generally prohibited from working, except in limited situations such as family businesses or certain agricultural tasks. These exemptions are designed to ensure that minors are not exposed to hazardous work or overly demanding job conditions.
14-15 Years
Laws in Indiana for minors under 16:
Minors aged 14 and 15 can work under tightly regulated conditions, with restrictions on the number of hours they can work, especially during school terms, and the types of jobs they can perform.
Working Hours:
- 3 hours per school day; 8 hours per non-school day.
- 18 hours per school week; 40 hours per non-school week.
- No work before 7:00 a.m. or after 7:00 p.m. (until 9:00 p.m. during the summer).
Type of Work: Limited to non-hazardous roles like retail or food service.
16-17 Years
Laws in Indiana for minors aged 16 and 17:
Older minors, ages 16 and 17, have fewer restrictions but still must balance work with school commitments. They face specific limits on their working hours and certain workplace conditions.
Working Hours:
- 8 hours per school day; 9 hours on non-school days.
- 40 hours per school week; 48 hours during vacations.
- Can work until 10:00 p.m. on school nights, and up to 12:00 a.m. on non-school nights.
Supervision: Workers under 18 must be accompanied by someone 18 or older if working between 10:00 p.m. and 6:00 a.m. in establishments open to the public.
Child Labor Law Amendments: In 2025, Indiana will allow older teens (ages 16 and 17) to work longer hours and later into the evening than previously allowed, giving them more flexibility in balancing work and school.
Other Essential Indiana Labor Laws
Health and Safety Standards in Indiana
Indiana has established health and safety standards to ensure that employers provide safe and hazard-free working environments. These regulations are primarily governed by the Indiana Occupational Safety and Health Administration (IOSHA), which enforces safety guidelines in the workplace.
Both employers and employees play a role in maintaining these safety standards, and reporting mechanisms are in place for violations or unsafe conditions.
In Indiana, employers must…
- Ensure a Safe Workplace: Employers are required to provide a working environment free from recognized hazards that could cause serious harm or death to employees.
- Comply with IOSHA Standards: Follow state and federal OSHA guidelines for safety protocols, including providing personal protective equipment (PPE), safety training, and hazard communication.
- Maintain Records: Keep accurate records of workplace injuries and illnesses, as mandated by IOSHA
- Post Notices: Display labor law posters, including health and safety standards, in a visible area for employees.
In Indiana, employees should…
- Report Unsafe Conditions: Employees must inform their employers if they notice any hazardous conditions or safety concerns. They also have the right to refuse work if they believe their work environment poses a serious and imminent danger.
- Follow Safety Procedures: Adhere to all safety training and use personal protective equipment (PPE) as required by their job.
- Participate in Training: Complete safety and health training programs provided by the employer to minimize workplace risks.
Report health and safety violations (unsafe working conditions) in Indiana to…
Employees:
Report complaints to IOSHA by calling the Indiana Department of Labor’s Complaint Office or submitting a complaint online:
- Indiana IOSHA Complaint Form
- Call IOSHA: 1-800-321-6742
Employers:
Employers can seek guidance on maintaining compliance through the IOSHA Consultation Program, which helps identify potential safety hazards before they lead to violations:
Hiring and/or Firing Employees in Indiana
Indiana is an at-will employment state, meaning that employers can terminate employees at any time, for any reason, or no reason, as long as the reason isn’t illegal (e.g., based on discrimination or retaliation). Employees can also leave the job without notice or reason.
Indiana is a right-to-work state, which means that employees are not required to join a union or pay union dues as a condition of employment, even in unionized workplaces.
- Background Checks: Indiana allows employers to conduct pre-employment background checks, but they must comply with federal laws such as the Fair Credit Reporting Act (FCRA), which requires employee consent and proper disclosure of findings.
- Ban-the-Box Law: Indiana does not have a statewide ban-the-box law that restricts when an employer can inquire about an applicant’s criminal history. However, individual cities may have their own regulations.
- Drug Testing: Employers in Indiana can implement drug testing policies, but they must ensure they comply with state and federal privacy laws. Drug testing may also be required for jobs related to safety-sensitive industries, such as transportation.
Indiana employers are prohibited from discriminating against employees based on protected categories such as race, color, religion, sex, age, national origin, disability, genetic information, or veteran status, under both federal and state laws.
Anti-Discrimination Laws in Indiana
Indiana, like other states, prohibits discrimination in employment under both state and federal law. Employers in Indiana are not allowed to discriminate against job applicants or employees based on certain protected categories. These protections apply to hiring, firing, promotions, pay, benefits, and other terms and conditions of employment.
Employers in Indiana may not discriminate against job applicants based on…
- Race, color, or national origin: Employers must treat all applicants and employees equally, regardless of their racial or ethnic background.
- Religion: Employers cannot treat individuals differently based on their religious beliefs and must make reasonable accommodations for religious practices unless doing so would cause undue hardship.
- Sex and gender: Discrimination based on sex, gender identity, or sexual orientation is prohibited, including any differential treatment related to pay or job assignments.
- Disability: Under the Americans with Disabilities Act (ADA), employers must provide reasonable accommodations to employees with disabilities unless doing so would impose an undue hardship.
- Age: Indiana enforces federal laws, like the Age Discrimination in Employment Act (ADEA), protecting workers aged 40 and older from age-based discrimination.
- Veteran status: Employers are required to offer equal opportunities to veterans and cannot discriminate based on military service.
Employee Resignation or Termination in Indiana
In Indiana, employment relationships typically fall under the at-will employment doctrine. This means that either the employer or the employee can terminate the employment relationship at any time, with or without cause or notice, provided the reason is not illegal (e.g., discrimination or retaliation).
Employers are not required to provide advance notice of termination, and employees are also free to resign without giving notice, though doing so professionally is generally recommended.
For cases involving termination, employers must ensure that the decision is not based on any discriminatory or retaliatory practices. Severance pay is not mandated in Indiana but may be offered if outlined in the employment contract.
Unemployment Benefits in Indiana
Workers in Indiana are eligible for unemployment benefits if they meet certain criteria set by the Indiana Department of Workforce Development (DWD). Unemployment benefits are available to individuals who have lost their job through no fault of their own and are actively seeking new employment.
- Involuntary job loss: Workers must have been laid off, had their hours reduced, or were terminated without misconduct.
- Sufficient work history: Applicants must have earned sufficient wages in the past 12 to 18 months to qualify, based on the DWD’s criteria.
- Able and available for work: Workers must be physically able to work, available to accept new employment, and actively searching for jobs.
Use this website to start your application for unemployment benefits in Indiana:
COBRA Benefits in Indiana
Separated employees in Indiana may extend employer-provided health care coverage through the Consolidated Omnibus Budget Reconciliation Act (COBRA). This federal law allows employees to temporarily continue their health insurance after leaving employment under certain conditions. Indiana employers with 20 or more employees must offer COBRA coverage.
- Eligibility: Employees who have lost their jobs (voluntarily or involuntarily) for reasons other than gross misconduct, or who experience a reduction in work hours, are eligible for COBRA benefits.
- Coverage Duration: COBRA allows former employees, spouses, and dependents to continue health insurance coverage for up to 18 months, with extensions available in certain situations, such as disability or death of the covered employee.
- Costs: While employees can continue their coverage, they are typically required to pay the full premium for the insurance, including the portion previously paid by the employer, plus a 2% administrative fee.
COBRA offers a critical bridge in health care coverage for those transitioning between jobs or undergoing major life changes, ensuring continued access to medical services during the interim period.
Final Paychecks in Indiana
Separated employees in Indiana must receive their final paychecks according to state law, which mandates that employers follow specific timelines for delivering all owed wages. The timing of the final paycheck depends on whether the employee was terminated or resigned voluntarily.
- Terminated Employees: If an employee is terminated, the employer must issue the final paycheck by the next scheduled payday for the pay period during which the separation occurred.
- Resigned Employees: If an employee voluntarily resigns, the same rule applies—the final paycheck must be paid on or before the next regularly scheduled payday.
- Contents of Final Pay: The final paycheck must include all unpaid wages, including any earned commissions, overtime, and accrued vacation pay (if the employer’s policy provides for it).
Indiana law requires that employers comply with these timelines to avoid potential penalties or wage disputes.
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Indiana Recordkeeping Requirements
Under the Fair Labor Standards Act (FLSA) and other federal regulations, employers in Indiana must maintain various employment and payroll records for specified periods. These requirements ensure compliance with wage and hour laws, employee benefits, and workplace safety regulations.
1 Year
Employers must retain these documents for at least one year:
Equal Employment Opportunity (EEO) Records: The Equal Employment Opportunity Commission (EEOC) requires employers to keep all employment records, such as hiring decisions and terminations, for one year after the employee’s termination.
2 Years
Employers must retain these documents for at least two years:
- Timecards and Work Schedules: Employers must maintain timecards, work schedules, and records showing the start and end times of work shifts.
- Wage Rate Tables and Job Evaluations: These records must show the basis for wage calculations, including job classifications, seniority systems, and merit systems, particularly to explain any wage differences between employees.
- Records of Additions or Deductions: This includes any changes made to employee pay, such as wage deductions or bonuses.
3 Years
Employers must retain these documents for at least three years:
- Payroll Records: These include records of wages paid, hours worked, overtime earnings, and other payroll information such as wage deductions.
- Employment Contracts and Agreements: This covers employment contracts, collective bargaining agreements, and any certificates or notices related to pay.
- I-9 Forms: Employers must retain each employee’s completed I-9 form for three years after the employee is hired or for one year after the employee leaves, whichever is later.
- Family and Medical Leave Act (FMLA) Records: If an employer is subject to FMLA, they must keep documentation related to leaves, notices, and employee eligibility for at least three years.
5 Years
Employers must retain these documents for at least five years:
Injury and Illness Logs: OSHA Form 300 (Log of Work-Related Injuries and Illnesses) and Form 301 (Incident Reports) must be kept on file for at least five years from the date of the incident.
6 Years
Employers must retain these documents for at least six years:
Benefits Plans and Documents: Documentation related to employee benefit plans, including retirement and health insurance plans.
Penalties for Labor Law Noncompliance in Indiana Wages
Up to $10,000Unlawful Termination
Employers who unlawfully terminate employees within four weeks of hiring and replace them without halting work may face a fine of up to $10,000 for committing a Class A infraction.
Up to $5,000Minimum Wage Violations
Employers who intentionally violate the minimum wage laws or fail to post required wage information may face fines of up to $5,000. Repeated violations can result in a Class B misdemeanor, which may include up to 180 days in jail.
$1,000Overtime Violations
A civil penalty of $1,000 can be imposed for overtime violations, especially if the violation is identified during an investigation into wage-related complaints.
Up to $400Child Labor Law Violations
Employers who violate Indiana’s child labor laws face escalating fines based on the number of violations:
- First violation: Warning letter.
- Second violation: Fine of $50 to $100.
- Third violation: Fine of $75 to $200.
- Fourth and subsequent violations: Fine of $100 to $400, depending on the severity of the violation.
Up to $132,598Health and Safety Violations (IOSHA)
Under Indiana Occupational Safety and Health Administration (IOSHA), penalties for workplace safety violations are as follows:
- Non-serious violations: Fines up to $7,000 per violation.
- Serious violations: Fines up to $7,000 per violation.
- Repeat violations: Fines up to $70,000 per violation.
- Knowing violations contributing to a fatality: Fines range from $9,472 to $132,598 per violation.
In Indiana, labor law violations are investigated and addressed by…
- Indiana Department of Labor (IDOL): The IDOL enforces state labor laws, including those related to wage and hour compliance, child labor, and workplace safety. They also oversee IOSHA investigations.
- Indiana Occupational Safety and Health Administration (IOSHA): IOSHA ensures that workplaces comply with federal and state safety standards. They investigate reports of unsafe working conditions and accidents, issuing fines or corrective orders when violations are identified.
- Equal Employment Opportunity Commission (EEOC): The EEOC investigates complaints related to workplace discrimination under federal laws, such as Title VII, the Americans with Disabilities Act (ADA), and the Age Discrimination in Employment Act (ADEA).
- U.S. Department of Labor (Wage and Hour Division): The Wage and Hour Division (WHD) of the U.S. Department of Labor investigates violations of federal labor laws, including those related to minimum wage, overtime, and family medical leave.
Indiana’s minimum wage is $7.25 per hour, matching the federal minimum wage. Employers must ensure that employees are paid at least this rate, except for tipped employees, who must be paid a base wage of $2.13 per hour, as long as tips bring their total earnings to at least $7.25. If tips do not cover the gap, employers must compensate for the difference. There are no local variations of the minimum wage in Indiana, meaning the rate remains consistent across the state.
Indiana follows federal Fair Labor Standards Act (FLSA) guidelines for overtime pay. Non-exempt employees are entitled to 1.5 times their regular pay rate for any hours worked beyond 40 hours in a workweek. However, certain employees, such as those in executive, administrative, and professional roles, may be exempt from overtime based on their duties and salary.
Yes, Indiana is a right-to-work state, meaning employees cannot be required to join a union or pay union dues as a condition of employment. This law applies to private-sector workers and ensures that union membership or financial support is entirely voluntary.
Indiana follows an at-will employment doctrine, allowing employers to terminate employees at any time for any legal reason. However, employers cannot fire workers for discriminatory reasons, such as race, gender, religion, or age, nor in retaliation for whistleblowing or reporting unsafe working conditions. Violations can lead to legal consequences.
Indiana law does not require employers to provide meal or rest breaks for employees aged 18 and older. However, minors aged 14 to 17 must receive a 30-minute break when scheduled to work six or more consecutive hours. While not required, short rest breaks (typically under 20 minutes) must be paid if provided.
