Indiana Wage and Hour FAQs

Indiana Overtime, Minimum Wage Questions

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Am I entitled to receive the Indiana minimum wage or overtime pay?

Most employers in Indiana must comply with the Fair Labor Standards Act (FLSA), which is a federal law that establishes regulations for minimum wage and overtime pay. Companies that are not covered by the FLSA may still be subject to Indiana minimum wage law.

Are waiters and waitresses entitled to minimum wage?

Waiters and waitresses who earn tips must receive at least the minimum wage per hour. Indiana employers must pay tipped employees a direct hourly wage of at least $2.13. If the tipped employee’s tips plus direct wage does not equal at least the Indiana minimum wage, the employer must make up the difference. Under Indiana wage and hour law, a tipped employee is defined as a worker who regularly and customarily makes more than $30 per month in tips.

What is the overtime law in Indiana?

The FLSA states that employers must pay 1.5 times their regular rate for hours worked in excess of 40 in a single workweek. However, certain employees are exempt from overtime pay under federal and Indiana overtime law.

When should an employee receive their final paycheck?

Final wages must be provided by the next regular payday on which the worker would have been paid had they not been separated from the company.

Can an employer change a worker’s pay rate?

Unless an employer-employee agreement states otherwise, an employer can change a worker’s pay rate as long as the new rate of pay does not fall beneath the Indiana minimum wage. The employer, however, must notify the worker before changing the rate. The employee has the right to accept the new wage or quit. If an employee is not notified of a change in pay, they may be able to file an unpaid wage claim for the difference in wages for hours worked before the notification.

Can an employer fine a worker and take the money out of their wages?

No. Indiana employers cannot fine employees and take the amount from their paycheck.

Should I be paid for “on call” time?

In general, employees should be compensated for time spent under the direction or control of the company. Employees who must remain “on call” at home are not required to be compensated. However, employees who remain on the employer’s premises should be paid for this time spent “on call.”

Should I be paid for sick days, personal days and holidays?

Indiana employers are not required to pay employees for sick days, personal days or holidays. Indiana wage and hour law only requires employers to pay their workers for actual time worked.

How can I determine if I am an employee or independent contractor?

Worker classification determines how you are paid, the benefits you receive and your rights under Indiana wage and hour law. It can also determine whether or not you are eligible for overtime. If you are unsure of whether you are an employee or independent contractor, or if you feel you have been misclassified, contact an Indiana overtime attorney for advice.

Are Indiana employers required to give breaks?

In general, Indiana wage and hour law does not require employers to provide breaks to workers ages 18 or older. Minors who work six or more hours must be given at least a 30-minute break, which may be divided into two 15-minute breaks. These breaks can be taken at any point during the worker’s shift. Under Indiana wage and hour law, employers are required to keep a log of each minor employee’s breaks.

Other workers, such as pilots, truck drivers and employees covered by a union agreement may also be entitled to rest breaks.