Indiana Labor Laws

In the US, there are federal laws in place to manage the time spent by employees in the workplace, safeguarding their rights and guaranteeing fair pay for their efforts. These laws act as directives for employers, keeping them in check, and minimizing any forms of abuse or exploitation.

The Fair Labor Standards Act (FLSA), which dates back to 1938, is a critical federal law for time management, setting hourly wage rates and overtime pay, and requiring employers to keep an accurate record of their employees’ working hours. Overtime is pegged at 1.5 times the regular hourly rate for workers who exceed 40 hours a week. However, certain job categories, including executives, professionals, and administrative employees, are exempt from overtime pay depending on their job description and salary.

The Family and Medical Leave Act (FMLA) is another essential federal law that governs time management in the workplace, entitling eligible employees to up to 12 weeks of unpaid leave for specific family and medical reasons, such as the birth or adoption of a child or caring for a family member with a serious health condition. This act also requires employers to maintain employees’ health benefits during their leave and restore them to their previous or equivalent positions upon their return to work.

Employers who contravene federal time management laws face severe legal ramifications, including fines, back pay, and damages. If workers feel that their employer has violated federal time management laws, they can file complaints with the Department of Labor’s Wage and Hour Division for investigation and legal action.

Overall, federal time management laws are instrumental in ensuring that workers are compensated fairly for their time and effort in the workplace, protecting them from abuse and exploitation by employers. The Fair Labor Standards Act and the Family and Medical Leave Act are vital federal laws that govern time management and worker compensation, ensuring fair labor practices across various sectors, including non-profit, public, and private organizations.

The Indiana Civil Rights Act applies to employers with at least six employees and prohibits discriminatory hiring practices based on:

• Race or color
• Religion
• Sex
• National origin or ancestry
• Disability
• Military veteran status
• Age (for individuals over the age of 40)

In 28 US states, including Indiana, there are laws that aim to control the impact of union organizations. These laws are called “Right-to-Work” legislations, and their principal objective is to make it unlawful to demand union membership as a prerequisite to employment. Moreover, under Indiana law, unions must obtain written consent from employees before charging any representation fees.

Indiana is also among the states in the US that observe the “employment-at-will” rule. This means that the working arrangement can be terminated by either the employee or employer for any reason, at any time, without notice or explanation. Upon termination, the employer must provide the employee with their final payment on the next scheduled payday. If the employee leaves the job and the employer is unaware of their whereabouts, the employer is obligated to either pay the employee within ten days of being demanded for final payment, or once they receive an address where the wages can be sent.

Now, we will discuss some key labor laws in Indiana that may not be related to the categories we have previously explored. Some of these regulations include:

• Cobra Law – When an employee’s time with a company comes to an end, they may have the option to continue their health insurance coverage through the Consolidated Omnibus Budget Reconciliation Act (COBRA). To qualify, certain major life events must occur such as termination, a significant reduction in work hours, legal separation, divorce, or loss of dependent child status. If an individual is found to be eligible, they may extend their health insurance coverage for a period of 18 to 36 months. It’s important to note that while individuals and their families can opt to continue their coverage during this time, they will be responsible for paying the full premium amount.
• OSHA Laws – The Indiana Occupational Safety and Health Administration (IOSHA) oversees how hazardous substances are managed in work environments and sets training standards for handling dangerous conditions. If you are worried about safety practices at your workplace, you can contact IOSHA, and they will investigate the issue.
• Whistleblower Protection Laws – It is illegal for employers to take negative actions against workers who engage in activities protected by the Indiana Whistleblower Protection Unit. Such negative actions may include termination, demotion, denial of overtime or promotions, denial of benefits, disciplinary action, harassment, or intimidation.
• Background Check Laws – To provide applicants with a “fair chance” at being hired, employers in Indiana are required to follow certain guidelines. Specifically, during the initial job application process, employers cannot ask applicants about their criminal history. However, there are certain instances in which an employer may be permitted to do so. To determine whether or not inquiries into criminal history are permitted, it is advisable to examine the relevant Indiana code or speak with local authorities. Keep in mind that certain professions, such as childcare workers, home health agency personnel, personal services agency employees, and school teachers, may require background checks as a condition of employment.
• Recordkeeping Laws – In Indiana, employers are required by law to maintain employee records for up to three years. The format or form that these records are kept in is left up to the employer. Important employee information that should be included in these records are:
  • Employee’s name
  • Occupation
  • Home address
  • Sex
  • Date of birth if under 19
  • Hour and day workweek begins
  • Total hours worked each workday and workweek
  • Total daily or weekly straight-time earnings
  • Regular hourly pay rate
  • Total amount of overtime pay per workweek
  • Any wage deductions
  • Total wages for each pay period
  • Date of wage payment
  • Pay period covered

Indiana lawmakers have utilized the guidelines provided by the federal Fair Labor Standards Act (FLSA) in determining the minimum wage for the state. As a result, the current minimum wage rate in Indiana is equivalent to the federal minimum wage at $7.25 per hour.

The tipped minimum wage in Indiana is also consistent with the federal guidelines at $2.13 per hour for employees who regularly earn over $30 a month in tips. In cases where an employee’s total earnings (including both tips and direct wages) do not meet the minimum wage requirements, the employer is required to compensate the difference. Additionally, it is the responsibility of the employer to accurately track all tips received by employees.

For employees who are under 20 years of age or in their first 90 calendar days of employment, a subminimum “training wage” of $4.25 per hour may be paid by employers in Indiana.  

Indiana has established precise regulations to determine which workers are bound by minimum wage laws. However, several exemptions to these laws must be considered. These exemptions include:

• Minors under the age of 16
• Employees working for close family members
• Those with commission-based wages
• Student nurses
• Outside salespeople
• Insurance producers and solicitors
• Individuals performing agricultural labor
• Executives, administrators, and professionals making over $150 a week

Employers in Indiana have a legal obligation to pay their employees at least twice a month. Moreover, they must make sure to schedule regular paydays no later than ten days after the close of a pay period for which salaries are owed.

In Indiana, the state enforces overtime laws by drawing from the guidelines provided in the Fair Labor Standards Act (FLSA). Essentially, the FLSA mandates that employees be given overtime pay at the rate of 1.5 times their regular wage for any hours worked beyond 40 hours in a workweek – of course, with some exemptions available under certain circumstances. One thing worth noting is that, in Indiana, “workweek” is a term that refers to a regularly recurring 168-hour period, one that may or may not fall within the confines of a typical calendar week.  

Under federal FLSA overtime regulations, the state of Indiana has specific exemptions and exceptions with regards to overtime requirements. Essentially, if a worker earns a minimum of $684 each week, they might not be entitled to overtime pay if they fall under certain categories, such as:

• Executives and Administrative personnel
• Educators
• Computer workers
• Outside salespersons
• Seasonal amusement and recreation establishment staff
• Commissioned workers
• Taxi drivers

In Indiana, during workday breaks, the state follows the federal laws for employee breaks. According to these laws, it is not mandatory for employers to provide rest or meal breaks. But if the employer decides to offer breaks as a benefit then all breaks that last for less than 20 minutes must be paid for by the employer.

In Indiana, laws for meal breaks apply only to minors. These regulations state that any employee under the age of 18 who works continuously for six or more hours must receive one or two breaks, amounting to at least 30 minutes. Thus, other employees may not be entitled to meal breaks under Indiana law.

Indiana law requires employers to make accommodations for lactating employees. Specifically, they must provide a private location (not a bathroom stall) for employees to express milk, as well as offering cold storage for the milk during the workday. If the employer can’t meet this standard, they must permit the employee to bring their own portable storage device.

Indiana provides two types of leaves – required and non-required leaves.

The following are the required type of leaves that employers must provide in Indiana:

• Jury Duty Leave – In the state of Indiana, workers have the option of taking unpaid time off for jury duty without fear of repercussions from their employer. However, it’s important for employees to inform their boss ahead of time about their need for jury duty leave, and they may also be asked to provide their jury summons.
• Family and Medical Leave – As per the Family and Medical Leave Act of 1993, Indiana workers can avail up to 12 weeks of leave without pay, following some significant life events. If an employee is unable to work due to health issues or needs to care for a sick family member, they could be eligible for this leave. Additionally, adopting a child or taking in a foster child also qualifies for this type of leave. It’s important to note that while the leave is unpaid, an employee can’t be terminated from their job as a result of taking it.
• Family Military Leave – As an employee, you can take up to 10 days of unpaid leave in a calendar year if you have a family member who is serving in the military. This leave can be taken 30 days before their active duty orders start, while they are on a leave of absence from active duty, or 30 days after their active duty orders end. However, you must have worked for the same employer for at least 12 months and clocked at least 1,500 hours in the 12 months preceding your leave request to be eligible for this military family leave.

• Sick Leave – Employers are not required to provide Sick Leave
• Bereavement Leave – Unless their agreement specifically includes it, employers in Indiana are not obligated to offer bereavement leave to their employees.
• Voting Time Leave – Indiana does not have any regulations at the federal or state level that require employers to provide time off for voting.
• Vacation and Holiday Leave – In order to go on leave, employees must have it specifically stated in their contract, otherwise they are not entitled for it.

The following are the official federal holidays observed in the US:

There are state-mandated laws for Child Labor in Indiana that have been put in place to ensure the safety and well-being of young employees in the workplace. We will describe these below.

Please find the table below describing the working hours for minors:

In Indiana, minors are prohibited by law from working in certain occupations that are deemed dangerous. These occupations include:

• Manufacturing goods
• Mining
• Working with power-driven machinery
• Working in boiler or steam rooms
• Operating a motor vehicle
• Preparing meats for sale
• Construction

These laws have been put in place to ensure the safety and well-being of young employees in the workplace.