Indiana Labor Laws
An employer guide for 2026

Indiana labor laws at a glance

Indiana keeps its wage rules close to the federal baseline. Here is a quick summary drawn from the Indiana Department of Labor (IDOL) and the Indiana Code.

EZTime labor rule alerts flag overtime and missed rest periods before payroll.

Indiana minimum wage

Indiana's minimum wage is $7.25 per hour. The IDOL minimum wage poster explains that both the federal and state minimums rose to $7.25 on July 24, 2009, and the state has not raised its rate since. Nothing on the IDOL site announces a different rate for January 1, 2027.

The IDOL explains that most Indiana employers and employees are already covered by the federal Fair Labor Standards Act (FLSA). The state law fills gaps for workers the FLSA does not reach; the U.S. Department of Labor's state minimum wage table lists Indiana's law as applying to employers of 2 or more employees. In practice, the dollar figure is the same either way, so your attention is better spent on tipped pay, training wages and overtime.

Tipped employees

According to the IDOL's explanation of the minimum wage law, employers generally must pay tipped employees at least $2.13 per hour if they claim a tip credit. If the employee's tips plus the cash wage do not add up to $7.25 for every hour worked, the employer must make up the shortfall. Because the tip credit depends on real tip income, track reported tips every shift and check each pay period that every tipped worker reached the full minimum.

Training wage for young workers

Indiana allows a $4.25 per hour training wage for employees under 20 years old. It may only be used for the first 90 consecutive calendar days after the employee is first hired. Once that window closes, or once the employee turns 20, the full minimum applies. If you use the training wage, record each eligible worker's hire date and birth date so the rate switches on time.

Overtime in Indiana

Indiana uses weekly overtime only. Employers generally must pay one and one-half times the regular rate of pay for hours worked beyond 40 in a workweek. A long single shift does not create overtime on its own. The IDOL notes there are many exceptions to the overtime requirement and points employers to Indiana Code § 22-2-2-3 for most of them. If your business is covered by the FLSA, the federal exemption tests for executive, administrative and professional employees also apply. See our FLSA overtime guide or run the numbers with the overtime calculator.

Meal and rest breaks

Indiana does not require private employers to give adult employees meal periods or rest breaks. The state is not listed in the U.S. DOL's rest period table, and its meal period table mentions Indiana only for minors. That minors' rule has since changed: the IDOL's Youth Employment page now states that employers are no longer required to provide a minor with a break or lunch, regardless of hours worked.

Even without a mandate, many Indiana businesses schedule breaks for productivity and retention. Build your break policy in writing and apply it the same way for everyone in a role.

Paid sick leave and other leave

The IDOL does not publish any Indiana requirement for private employers to provide paid sick leave or paid vacation. Paid time off is generally governed by your own written policy or employment agreement. Because wages owed under a policy can become part of a wage dispute, be specific about how time accrues, whether there is a cap and what happens to unused time when someone leaves. The PTO accrual calculator can help you model accrual rates. If you are unsure whether a particular leave law applies to you, check with the Indiana Department of Labor.

Paydays and final paychecks

Under Indiana Code § 22-2-5-1, every employer doing business in Indiana must pay each employee at least semimonthly, or biweekly if requested. Pay may be made in cash, by negotiable check, draft or money order, or by electronic transfer to the employee's chosen financial institution. Each payment must cover all wages earned up to a date no more than 10 business days before the payday, so a pay lag longer than two business weeks is not allowed.

Final paychecks

Indiana's rules depend on how the job ends:

• Employer separates the employee: Under IC 22-2-9-2, unpaid wages become due and payable at the regular payday for the pay period in which the separation occurred.
• Employee quits: Under IC 22-2-5-1, the employer does not have to pay until the next usual and regular payday. If the employee left without a known address, the employer's penalty exposure does not start until 10 business days after the employee demands the wages or provides an address.

Late payment carries real cost. The IDOL's Wage and Hour Division explains that an employer who fails to pay wages on time or withholds them must pay the wages due plus reasonable attorney fees and court costs, and if the failure was not in good faith, the court may order liquidated damages of two times the amount of wages due. Employees can file an online wage claim with the IDOL.

Pay statements

The IDOL's guidance says employers must furnish each employee a statement of the hours worked, the wages paid and any deductions made. A clear, itemized pay stub each payday satisfies this and reduces disputes.

Child labor hours and permits

Indiana updated its youth employment rules effective January 1, 2025, to more closely mirror federal law. Under IC 22-2-18.1-17, minors who are 14 or 15 years old:

• May not work before 7:00 a.m. or after 7:00 p.m., except that they may work until 9:00 p.m. from June 1 through Labor Day
• May not work more than 3 hours on a school day or 18 hours in a school week
• May not work more than 8 hours on a non-school day or 40 hours in a non-school week

The IDOL states that 16- and 17-year-olds may work the same hours and days as an adult, with no parental permission needed for longer or later hours. Prohibited and hazardous occupation rules still apply to all minors and continue to mirror federal law; see the IDOL's list of prohibited and hazardous occupations.

Registration rules also changed. The IDOL's Youth Employment page says the online Youth Employment System (YES) database has been decommissioned and that, under House Enrolled Act 1302, Indiana employers are no longer required to report, register or track minor employees through a state portal. Older IDOL pages still describe registration for employers with five or more minors, so treat the current Youth Employment home page as the controlling guidance and confirm with the Youth Employment Division if in doubt.

Recordkeeping and posters

Keep accurate daily and weekly hour records, pay rates, tips and deductions for every non-exempt employee, and keep hire and birth dates for anyone paid the training wage. For posters, the IDOL's Posters and Helpful Links page provides the Indiana Minimum Wage poster, IOSHA safety posters and the Work Restrictions for Youth Employees poster, which the IDOL says is required for any business employing 14- or 15-year-olds. The minimum wage poster states that it must be displayed in a conspicuous place where employees work.

How EZTime helps Indiana employers

Indiana gives you flexibility on breaks, but pay timing rules are strict and overtime is weekly. EZTime gives you a GPS mobile time clock with geofencing, NFC tags, a tablet kiosk and biometric clocks, so every punch is tied to the right person and place. Build schedules with shift templates and let staff request swaps, get overtime and break alerts before a shift goes long, and track PTO and sick-leave balances automatically. When the pay period closes, export payroll-ready Excel or PDF reports that work with any payroll software. See the attendance clock and scheduling software, or check pricing: plans start at $2 per employee per month with a 14-day trial.

This guide is general information, not legal advice. Laws change; check the Indiana Department of Labor or an employment attorney. Last reviewed November 2026.