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Indiana has less restrictive labor laws compared to some other states and is mostly in line with federal regulations. But that does not mean employers can necessarily ignore them either. Comprehension of wage rules, overtime regulations, scheduling needs, and employee rights is critical to avoiding fines and creating a favorable work environment.
Labor Laws in Indiana are intended to protect employees and ensure safe, fair workplaces. Whether they work for the local electric company or a technology firm with its headquarters in the state, workers in Indiana have state laws they must follow. Because these Indiana labor laws may be updated frequently, it’s an ongoing requirement for businesses to comply with.
Standard Working Hours & Wages
As per the State of Indiana Labor Laws, the rules defer to federal labor standards as set in the Fair Labor Standards Act (FLSA). But there are a few crucial pieces of information that employers and employees need to understand.
Minimum Wages
Indiana adopts the federal minimum wage of $7.25 an hour. The statute covers employers with two or more employees, although it exempts those already subject to the federal FLSA.
Certain groups are exempt, including:
- Employees under 16.
- Commission-based employees.
- Agricultural workers.
Employers can pay workers under 20, regardless of how much experience they have, a wage of $4.25 an hour during their first 90 days of employment.
Overtime Laws
Non-exempt employees must be paid 1.5 times their regular rate for hours worked beyond 40 hours per week.
Exemptions include:
- Workers employed by a parent, spouse, or child.
- Employees under 16.
- Executive, administrative, and professional employees earning at least $150 per week with hiring/firing authority.
Employers can require overtime unless a contract or union agreement states otherwise. The State of Indiana Labor Laws do not set a minimum notice period for scheduling overtime.
Tipped Minimum Wages
The tipped minimum wage is $2.13 per hour.
Employers must ensure that wages plus tips equal at least the federal minimum wage of $7.25 per hour.
Only employees who regularly earn more than $30 per month in tips qualify as tipped employees.
Tip pooling is allowed, but:
- Employers cannot take any portion of tips.
- Only service-chain employees may participate.
- Tips must be divided fairly and reasonably.
Meal And Rest Breaks
Indiana does not have specific Indiana labor laws on breaks requiring meal or rest breaks for adult employees. Instead, workplace breaks are generally governed by federal rules under the Fair Labor Standards Act (FLSA).
Under the FLSA:
- Short breaks of 20 minutes or less must be counted as paid work time.
- Meal breaks, typically 30 minutes or longer, do not have to be paid as long as the employee is completely relieved of all job duties during that time.
While Indiana labor laws lunch break is silent on mandatory breaks for adults, it’s worth noting that minors under 18 must receive a 30-minute break if they work 6 or more consecutive hours.
Employee Compensation
There is a growing trend of pay transparency throughout the US as a number of states now require employers to publish salary ranges to job candidates.
California, Washington, and Colorado are among the states that have already enacted Indiana labor laws salary employees, and others are weighing the legislation. But Indiana does not currently have any pay transparency laws on the books, and there is no pending legislation on the matter either.
But as you can see, many companies are actively implementing internal practices to ensure fair pay. This subsequently enables businesses to implement fair, equitable pay practices in the absence of legislative demands.
Leave Laws
Whether an employer is required to provide leave and pay employees, they need to follow the Indiana Labor Laws 2025. Below is a table to know:
| Leave Type | Description |
| Vacation Leave | Indiana does not require employers to provide paid or unpaid vacation leave. |
| Holiday Leave | Indiana does not require employers to provide paid or unpaid holiday leave. |
| Severance Leave | Indiana does not require employers to provide paid or unpaid severance leave. |
| Sick Leave | Indiana does not require employers to provide paid or unpaid sick leave. |
| Jury Duty Leave | If an employee is summoned to appear for jury service, their employer is required to allow them to take time off for this purpose, with no fear of being penalized or terminated. |
| Military Leave | Eligible employees who have family members in the military may take up to 10 unpaid days off during: – 30 days prior to the issuance of active duty orders.
Because those were not in military service periods, there with some breaks – 30 days after release from active duty orders. |
| Family and Medical Leave (FMLA) | The federal Family and Medical Leave Act (FMLA) allows employees up to 12 weeks of unpaid leave for significant events, like the birth or adoption of a child, critical illness, or caregiving for a family member. |
| Pregnancy Disability Leave | Indiana does not have a statute specifically addressing pregnancy disability leave. Pregnant workers can also take time off work, unpaid, under the FMLA. |
| Pregnancy Accommodations Law | Enacted in 2021, covering employers with 15 people or more. It permits pregnant workers to ask their employers for reasonable accommodations. |
| Paid Sick Leave | Indiana has no laws requiring paid or unpaid sick leave; as such, it is left up to the employer to implement their own policy. |
Child Labor Laws
As per the Indiana labor laws for minors, unless there is a special exception, employers are allowed to hire 14-year-old workers and older.
Penalties for Violations
As per the Indiana labor laws minors, employers who do not comply with other child labor regulations risk civil penalties of at least $50, but not to exceed $400.
| Usage Guidelines | Restricted Restrictions on 14 and 15-year-olds | 16 and 17-year-olds |
| Limits on types of work | Minors are prohibited from working in occupations classified as hazardous by the federal FLSA.
A full list of prohibited and hazardous occupations for minors and provisions can be found on the Indiana Department of Labor’s website. |
Same restrictions apply. |
| When school is in session |
|
As of January 1, 2025, 16 and 17-year-olds have no limitations to working hours during the school period. |
| When school isn’t in session |
|
Same as above (no additional changes mentioned). |
Taxes in Indiana
Filing taxes in Indiana is a relatively easy process compared to many other states. As per the Indiana Work Labor Laws, Indiana has a flat state income tax rate of 3.05%. Some local jurisdictions add income taxes to their take from resident paychecks, depending on where you live.
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Curious Minds Also Ask
What are the labor laws in the state of Indiana?
Indiana adopts the Federal Law of the FLSA. Employees need to work 40 hours a week, and if it exceeds that, then employees will get overtime pay.
How many hours straight can you legally work in a day in Indiana?
In Indiana, adult employees are not limited to a maximum number of hours on a daily basis.
How many breaks do you get in an 8-hour shift in Indiana?
Indiana law does not mandate breaks for adults. Children younger than 18 are entitled to a 30-minute rest if they work for 6 or more hours.
What constitutes wrongful termination in Indiana?
A wrongful dismissal can involve being fired because of discrimination, retaliation, a contract violation, or whistleblowing.
How much notice does an employer have to give for a schedule change in Indiana?
Employers do not have to give notice when shifts are changed.
What is the maximum shift length in Indiana?
There is no cap on the length of a shift for adults in Indiana.
Can my employer force me to take a lunch break in Indiana?
Concerning adults, employers do not have to give lunch breaks, however, workers who are minors under the age of 18 need to get a 30 minute break when they work for more than 6 hours at a shift.
How many breaks are in an 8-hour shift in Indiana?
It is against the law to give adults rest periods at all in an 8 hour shift. Minors need one 30-minute break.
How many hours straight can you legally work in a day in Indiana?
No state law caps the number of hours of straight work that adults can work in a day.
What are Indiana’s labor laws?
Indiana labor laws generally adhere to federal guidelines: a $7.25 minimum wage, overtime pay after 40 hours, and at-will employment, with protection against discrimination.
How long does an employer have to pay you in Indiana?
Employers must pay at a minimum of semi-monthly, no later than 10 business days following the end of the payroll period.
Can you sue your employer in Indiana?
Yes, workers can sue an employer for wrongful termination, unpaid wages, discrimination, harassment, retaliation or safety violations.
How many breaks are there in an 8-hour shift, according to Indiana law?
Adults do not receive breaks in an 8-hour shift, though minors do have 30 minute meal breaks.
What are my rights as an employee in Indiana?
Workers are entitled to minimum wage, overtime, a safe workplace, freedom from discrimination, prompt pay, family leave, and protection from retaliation.
FAQ's
What is the minimum wage in Indiana in 2025?
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As of 2025, Indiana follows the federal minimum wage, which is $7.25 per hour. However, employers should monitor any updates, as federal or state legislation could change wage requirements.
Are employers in Indiana required to provide paid sick leave?
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Currently, Indiana does not mandate paid sick leave for private-sector employees. However, employers may voluntarily offer it, and some may be required to under federal laws such as the Family and Medical Leave Act (FMLA).
How many hours can an employee work in a day or week in Indiana?
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Indiana does not have a daily overtime limit. Employees are entitled to overtime pay (1.5x their regular rate) if they work more than 40 hours in a workweek, unless they are classified as exempt.
What are Indiana’s laws on meal and rest breaks in 2025?
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Indiana law requires employers to provide one or two rest periods totaling at least 30 minutes to employees under age 18 who work 6 or more consecutive hours. For adults, there is no state requirement, but federal law encourages reasonable breaks, and many employers provide them as part of company policy.
