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.
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.
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.
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.
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.
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.