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Employers and employees in Indiana must stay updated with the state’s latest developments in labor laws.
These laws play a vital role in promoting a safe and healthy work environment, ensuring fair treatment of employees, and fostering a harmonious employer-employee relationship. Staying abreast of labor laws also helps organizations remain compliant and avoid unnecessary legal issues.
As part of our 50-state series focusing on labor laws across the United States, this post aims to equip employers and employees with the necessary knowledge to navigate the ever-evolving workplace landscape in Indiana.
Let’s dive right in.
Meals and Breaks in Indiana
Indiana does not require private employers to provide meals to employees. The state follows federal break laws regarding rest breaks and meal periods during work. According to these laws, private employers are not required to provide rest breaks and meal periods.
However, if the employer provides these breaks as an employee benefit, all breaks lasting less than 20 minutes must be paid at the normal rate. As for breaks longer than 20 minutes, employers do not have to pay as long as employees are relieved of their duties during these breaks.
Minors are usually an exception to these federal break laws in Indiana. The state labor laws require employers to provide one or two breaks totaling at least 30 minutes to minor employees scheduled to work six or more consecutive hours. Workers like truck drivers and airline pilots may also be entitled to mandatory breaks per their contracts or under other applicable regulations.
Meal and Break Laws in Indiana
Meal Breaks For Adults
No Requirements
Meal Breaks for Minors
30-minute breaks for minors working six consecutive hours
Lactation Breaks
No duration
Leave and Paid Time Off (PTO) in Indiana
States across the country have different leave laws and requirements. However, the Hoosier State has no comprehensive labor laws governing leave or paid time off (PTO).
In other words, employers in Indiana are not required by the law to provide employees with paid or unpaid time off for state holidays or bereavement, sick, or voting leaves.
However, an employer must comply with the established employee handbook or employment contract policies if they provide these benefits. Most importantly, the terms of these benefits must be well-defined and understood by all parties involved.
Here are the various types of leaves required by Indiana labor laws and their terms:
Vacation Time
Although employers are not required to provide paid or unpaid vacation time, they’re free to establish a vacation policy that provides their employees with such benefits. If the employer implements such a policy, they must ensure the vacation leave benefits comply with the established policy or employment contract. Additionally, employers must provide a written notice of all the details in their vacation policies to all employees.
In Indiana, employers can decide how they want their employees to accrue vacation time, whether biweekly, semi-monthly, or monthly.
Family and Medical Leave
Unlike some states, Indiana does not have its own comprehensive family and medical leave laws. Therefore, employers in the Hoosier State are not legally required to offer leave rights beyond those stipulated by the federal Family and Medical Leave Act (FMLA). According to FMLA, employees in Indiana are entitled to up to 12 weeks of unpaid leave following various major life events.
Some of these events include the adoption of a new child, the birth and care of a newborn, a health condition that prevents an employee from working as they used to, and caring for a loved one with a serious health condition.
Employees can qualify for FMLA benefits only if:
- They have been working for the same employer for at least 12 months or worked at least 1,250 hours in the past 12 months preceding the leave request; and
- They work in a company that employs at least 50 people in a 75-mile area
Military Family Leave
The Indiana Military Family Leave Law applies to employers with at least 50 employees on any given workday. This law allows employees with family members in the military to take up to 10 days of unpaid leave per year during any of the following periods:
- Thirty days before the family member’s active duty orders go into effect;
- Thirty days after the family member’s active duty orders end; or
- When the family member is on a leave of absence from active duty
An employer may be eligible for the Indiana military family leave if:
- They have worked for the same employer for at least a year or at least 1,500 hours in the past 12 months preceding the leave request; and
- They have a spouse, parent, sibling, child, or grandparent who has served in the U.S. Armed Forces or the National Guard for at least 90 days
Most of the time, employers may require employees to take this leave as a substitute for another paid leave, except for medical or sick leave.
Jury Duty Leave
In Indiana, employers do not have to pay employees for the time spent serving on a jury. However, an employee cannot be penalized for responding to a jury summon in the state. Employers are prohibited from forcing employees to use their accrued vacation leave to serve on a jury.
Civil Air Patrol Leave
An employer in Indiana may not discipline an employee who is a member of the Civil Air Patrol for leaving work or not reporting to work to take part in an emergency service operation. If the operation begins after the employee has reported to work, they must obtain authorization from their supervisor or employer before leaving.
Employers may also request a written statement from a high-ranking Indiana Civil Air Patrol officer confirming the employee’s involvement in an emergency service operation during their absence.
Emergency Response Leave
An Indiana employer must refrain from disciplining an employee who is a volunteer firefighter or a Volunteer Emergency Medical Services Association member for being absent from work while responding to a fire or any other emergency call received before reporting to work. The employee may also request leave from the employer or supervisor if they need to respond to a fire or any other emergency call during work hours.
Employers should also not discipline an employee who is a volunteer firefighter or a Volunteer Emergency Medical Services Association member for missing work to take care of an injury sustained while responding to an emergency call or engaging in volunteer work.
Overtime Regulations in Indiana
Indiana’s overtime regulations are derived from the federal Fair Labor Standards Act (FLSA). According to the provisions of the FLSA, any employee who works more than 40 hours in a workweek is entitled to 1.5 times their regular pay rate in overtime pay.
However, various categories of workers are exempt from Indiana’s overtime requirements. Exceptions are outside salespersons, taxi drivers, seasonal staff at recreational facilities, and professional/administrative/executive staff.
Wages and Benefits in Indiana
Regarding laws governing wages, working hours, and benefits, Indiana mostly relies on the provisions provided by the federal FLSA. Currently, the minimum wage in Indiana is $7.25 per hour, which is the same as the federal minimum wage. All employers with at least two employees must adhere to this minimum wage, which has remained unchanged since 2009.
On the other hand, Indiana’s minimum wage for tipped employees is $2.13 per hour. The employer must cover the difference if a tipped employee’s total earnings are lower than the minimum wage. Plus, the employer’s also responsible for keeping track of all tips their employees receive.
Indiana also allows a subminimum or training wage of $4.25 per hour. This wage can be given to employees younger than 20 during their first 90 days. Indiana employers can also pay full-time college and high school students 85% of the current minimum wage ($6.16) if they work at most 20 hours a week or engage in a work-study program.
Exceptions to the Minimum Wage in Indiana
People exempted from minimum wage laws in Indiana are as follows:
- Student nurses
- Persons under the age of 16
- People employed by their spouses or close relatives
- Executive/professional/administrative employees making more than $150 a week
- Insurance brokers and solicitors
- Outside salespersons
- Agricultural laborers
- Hospital interns
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Laws Related to Pay Frequency, Pay Stubs, and Final Paychecks in Indiana
Employers in Indiana are required to pay wages to their employees at least twice a month or weekly if requested by an employee. Additionally, all payments must be scheduled within 10 business days of a given pay period.
Most importantly, employers in Indiana must provide employees with detailed pay stubs indicating the total number of hours worked, the rate of pay, and all deductions made.
When it comes to final paychecks, the state of Indiana requires that employers issue final paychecks to recently terminated employees on or before the next regularly scheduled payday.
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💡Did You Know?
Benefits Employers May Offer to Employees in Indiana
Indiana has no specific laws governing employee benefits. However, federal labor laws require employers in Indiana to provide their employees with various types of benefits. Some of these benefits are mandatory, while others are optional.
Benefits in Indiana
Medicare
Mandatory
Unemployment Insurance
Mandatory
Workers' Compensation Insurance
Mandatory
Dental Insurance
Optional
Vision Insurance
Optional
Disability Insurance
Optional
Retirement Savings
Optional
Mandatory benefits include social security, Medicare, unemployment insurance, and workers’ compensation insurance. On the other hand, the optional benefits include dental insurance, vision insurance, disability insurance, paid time off (PTO), and retirement savings.
Prevailing Wages in Indiana
Prevailing wage laws are ideally designed to ensure all employees working on public works are paid fair wages. In Indiana, prevailing wages usually apply to public projects funded by the state, counties, cities, and public schools.
In 2015, Indiana repealed the state’s Common Construction Wage law to help increase the wages paid to workers in various trades. The state’s main argument for adopting prevailing wages is to increase the workers’ income and stimulate economic growth.
The prevailing wage rates in the state are determined by the Indiana Department of Labor (IDOL) with the help of surveys of union and non-union wages in the construction industry.
For more information about the current prevailing wage rates in Indiana, check out the following resources:
Hiring Practices in Indiana
Indiana’s Regulations Regarding Job Postings, Interviews, and Hiring Decisions
- JOB POSTINGS: According to Indiana labor laws, employers should ensure their job postings are accurate and clearly state the responsibilities of a particular position, as well as the qualifications required. Most importantly, all job postings should disclose accurate salary ranges to prevent wage disparities.
- INTERVIEWS: Indiana employers must ask interview questions relevant to the respective positions. Indiana Civil Rights Law (ICRL) prohibits employers from asking job applicants questions that are discriminatory or unrelated to the job.
- HIRING DECISIONS: Indiana employers’ hiring decisions should always be merit-and-skill-based. Employers must not make hiring decisions based on protected characteristics, such as age, race, religion, gender, disability, or sexual orientation.
Indiana Laws Related to Background Checks and Drug Testing
- BACKGROUND CHECKS: Before hiring a new employee, employers can perform background checks that do not revolve around criminal histories. These background checks are deemed necessary, especially when the potential employee works in a childcare facility or as a teacher.
- DRUG TESTING: Indiana is one of the few states that allows employers to carry out drug testing on employees. That said, employers can drug test applicants and employees, provided the testing is not discriminatory.
Anti-Discrimination Laws and Equal Employment Opportunities in Indiana
Indiana has many laws prohibiting discrimination in employment. These laws apply to both private and public employers. Most importantly, anti-discrimination laws exist in the state to protect employees from discrimination based on protected characteristics, such as sex, gender, age, religion, sexual orientation, color, disability, national origin, ancestry, and even veteran status.
When making hiring decisions, employers must comply with all applicable Equal Employment Opportunity (EEO) laws in the state. These laws are ideally designed to ensure every Indiana resident has an equal opportunity to succeed in the workplace regardless of their protected characteristics.
Health and Safety Standards in Indiana
Indiana is one of the states that operates its own Occupational Safety and Health Administration (OSHA)-approved state plan.
The Indiana Occupational Safety and Health Administration (IOSHA) usually covers private-sector employers and employees in the state. On the other hand, the federal OSHA covers certain employers and employees not covered by IOSHA.
Although IOSHA follows the same safety standards as OSHA, it puts more emphasis on local programs in Indiana. IOSHA’s main objective is to ensure the safety of employees involved in potentially dangerous jobs. It does this by setting and enforcing health and safety standards that all employers and employees must adhere to.
Indiana also has a Smoke-Free Air Law that prohibits people from smoking in the following places:
- Areas of employment
- Restaurants
- Most public places
- Areas within 8 feet of public entrances to public buildings
- Inside vehicles owned, leased, or operated by the state of Indiana, especially if the vehicle is used for governmental functions
According to Indiana’s Smoke-free Air Law, people are allowed to smoke in bars and taverns, hookah bars, licensed horse track facilities, cigar bars, membership clubs, and tobacco retail shops.
If you’d like to report unsafe working conditions in Indiana, you can file a complaint with IOSHA and wait for them to investigate.
Employee Termination and Resignation in Indiana
Termination
Indiana is an at-will employment state, meaning employers can discharge employees for any reason. Employers are also not required by the state’s labor laws to provide employees with a written notice of termination.
Moreover, Indiana employers are not required to provide severance pay to employees who have been terminated. However, some employers may offer terminated employees severance pay per company policy.
There are some exceptions to the at-will employment doctrine. For example, employers cannot discharge an employee for discriminatory reasons or to retaliate against the employee for engaging in rightful action.
Resignation
Indiana labor laws do not require employees to provide a written notice of resignation to employees before leaving their jobs. However, it’s widely considered courteous and professional for employees to provide their employer with advance notice of intent to resign.
This way, the employee can leave in good standing while allowing their employer enough time to prepare for their departure and make the necessary arrangements to fill the job vacancy. In most cases, employees must provide at least two weeks’ notice of intent to resign to ensure they receive all their accrued wages and benefits.
Right-to-Work Laws
Indiana is a right-to-work state, meaning employees should not be required by their employers to remain members of a particular labor organization or pay dues to a labor organization as a condition of employment.
Unemployment Benefits in Indiana
Indiana’s employment insurance program provides temporary financial assistance to residents who have recently lost their jobs. To qualify for unemployment benefits in Indiana, you must meet the following requirements:
- You must be unemployed through no fault of your own;
- You must have earned at least $4,200 in wages during your base period; and
- Most public placesYou must be available for work and actively looking for a job
Here are some resources to help employers understand their role in the unemployment process in Indiana:
Penalties for Noncompliance in Indiana
Employers who fail to comply with Indiana labor laws are subject to penalties, civil lawsuits, fines, and even imprisonment. Here are the maximum monetary penalties employers may face for willful violation of various Indiana labor laws:
- Minimum wage violations: $2,074
- Recordkeeping violations: $1,084
- Overtime violations: $2,074
- Child labor violations: $11,000
- Employee misclassification violations: $1,000
Indiana labor law violations can be reported online or by phone to the following authorities:
- THE OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION (OSHA): Responsible for enforcing safety and health standards in workplaces.
- THE INDIANA DEPARTMENT OF LABOR (IDOL): Responsible for enforcing labor laws throughout the state.
- THE INDIANA CIVIL RIGHTS COMMISSION (ICRC): Responsible for enforcing laws prohibiting employment and housing discrimination.
- THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION (EEOC): laws that protect Indiana residents against employment discrimination.
Other Essential Information About Labor Laws in Indiana
Indiana also has several other labor law categories that intend to protect employee rights and provide guidelines regarding employers’ obligations and responsibilities in the workplace. They include the following:
- WHISTLEBLOWER PROTECTION LAWS: These laws protect whistleblowers when they file a complaint regarding workplace safety or report a violation of Indiana labor laws.
- SOCIAL MEDIA REGULATIONS: Employers can access content posted by employees on social media platforms and even use it as grounds for termination.
- RECORDKEEPING LAWS: Indiana employers must keep employee records for up to three years.
Under the National Labor Relations Act (NLRA), Indiana employees have the right to:
Other Essential Information About Labor Laws in Indiana
Indiana also has several other labor law categories that intend to protect employee rights and provide guidelines regarding employers’ obligations and responsibilities in the workplace. They include the following:
- Form or join a labor union;
- Collectively bargain for their wages and benefits;
- Discuss their wages and employment terms with their coworkers; and
- Take the necessary action to improve their working conditions.
The Bottom Line on Indiana Labor Laws
While federal laws exist, different states and cities across the U.S. create their own legal protections for workers. Generally, Indiana’s labor laws are considered less strict than most states, but this doesn’t mean that employers and employees are off the hook. They still need to understand and abide by state laws.
Besides providing an in-depth review of the wage structures, overtime policies, and break entitlements in Indiana, the above guide also equips employers and employees with much-needed knowledge of their rights and responsibilities in the workplace.
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