Indiana Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More for 2026

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.

Indiana now requires every employer to provide one unpaid, job-protected leave per calendar year for employees attending their child’s school conference or IEP meeting.

Senate Enrolled Act 409, signed April 24, 2025, applies to all employers with at least one employee. No minimum tenure or hours threshold applies.

The leave covers two qualifying events: a school attendance conference related to truancy proceedings, and a case conference committee meeting for a child’s Individualized Education Program (IEP).

Leave terms: one per calendar year, unpaid, five days’ advance notice required (except in emergencies), employer may require documentation after the meeting, and leave may be limited to the time reasonably necessary including travel.

Employers cannot demote, fire, or discipline an employee for taking this leave. The law sunsets July 1, 2029.

For a framing crew or electrical subcontractor with parents on staff: expect these requests. Document them. Get advance notice in writing. You cannot penalize anyone for attending an IEP meeting.

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.

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​.