State Labor Law Guide

Indiana
Labor Laws

What workers in Indiana need to know about minimum wage, overtime, breaks, final pay, and their rights when an employer has not paid them fairly.

IN INDIANA
$7.25
Minimum Wage
$10.88
Overtime Rate
No
Mandated Breaks
2-3 Years
Claim Deadline
FLSA
Governing Law

Minimum Wage $7.25 PER HOUR

Indiana's minimum wage is $7.25 per hour, the same as the federal minimum wage. Most Indiana employers are covered by the federal FLSA, but Indiana's minimum wage law may apply to some employers not covered by federal law.

Indiana allows a tip credit for tipped employees. Employers may pay a direct cash wage of at least $2.13 per hour, but tips must bring the worker's total pay to at least $7.25 per hour. If tips do not cover the difference, the employer must make up the shortfall.

No Local Rate: Indiana does not have a higher statewide minimum wage or automatic annual increase. The practical floor remains $7.25 per hour for most covered workers.

Overtime Laws 1.5X RATE

Most non-exempt Indiana employees must receive overtime at one and a half times their regular rate for hours worked over 40 in a workweek. At Indiana's $7.25 minimum wage, that equals $10.88 per hour.

Overtime is calculated by workweek. Working more than eight hours in one day does not automatically create overtime if total hours for the week do not exceed 40. Bonuses, commissions, and other pay may need to be included when calculating the regular rate.

Exempt Employees: A salary does not automatically remove overtime rights. Exempt status depends on pay, duties, and the actual work performed, not job title alone.

Meal & Rest Breaks NO MANDATE

Indiana does not generally require employers to provide meal or rest breaks for adult employees. Break rights may still come from an employment agreement, collective bargaining agreement, or workplace policy.

When an employer provides short rest breaks, those breaks are usually paid. A meal period may be unpaid only when the employee is fully relieved of duty and the time qualifies as a bona fide meal period.

Working Lunches: If an employee must keep working, answer calls, help customers, watch equipment, or remain on duty during a meal period, that time may need to be paid.

Final Paycheck NEXT PAYDAY

When an Indiana employee leaves a job, final wages generally must be paid on or before the next regularly scheduled payday when the employee would normally have been paid. This applies to unpaid wages that were already earned.

Regular Paydays: Indiana wage-payment rules also require covered employers to pay wages at regular intervals. Late or withheld final pay may support a wage claim.

Filing a Claim 2-3 YEAR WINDOW

Indiana workers may file certain wage claims with the Indiana Department of Labor, including claims involving nonpayment, overtime, deductions, or a withheld final paycheck. The Department may limit the claims it accepts based on amount and other requirements.

Federal FLSA claims generally have a two-year limitations period, extended to three years for willful violations. Indiana minimum-wage claims may also involve a separate three-year action period under state law, so the deadline can depend on the claim being brought.

Important: Each unpaid paycheck can affect the amount of wages recoverable. Waiting too long can reduce or eliminate a claim.

Employee Misclassification COMMON VIOLATION

Some Indiana employers label workers as independent contractors or exempt employees to avoid paying overtime, payroll taxes, or other wage obligations. A job title, contract, or salary does not automatically decide whether wage protections apply. The actual working relationship, economic realities, and day-to-day duties matter.

This article is provided for informational and educational purposes only and does not constitute legal advice. Reading this content does not create an attorney-client relationship with Josephson Dunlap LLP. Wage and hour laws vary by state, and the application of these laws depends on the specific facts of each situation. The figures and information cited above are current as of the date of publication and are subject to change. Prior results in other matters do not guarantee or predict a similar outcome in any future matter. If you believe your wages were not paid correctly, consult a qualified, licensed employment attorney.

Think You May Be Owed Back Wages?

Josephson Dunlap reviews wage claims for Indiana workers at no cost. There is no fee unless wages are recovered. A case manager will go through your situation and tell you where you stand.