Indiana

$7.25 / hour

An Indiana employer not subject to the FLSA must pay the state minimum wage of $7.25 per hour.

Effective

2009-07-24

Checked

2026-08-10

1.5%

Indiana employers not subject to the FLSA must pay overtime at time and one-half for hours worked over 40 during the workweek.

Checked

2026-08-10

Worker misclassification occurs when a worker who meets the statutory or common-law definition of an employee is treated as self-employed or as an independent contractor; an employer does not avoid its obligations by failing to acknowledge the worker as an employee.

Checked

2026-08-10

The State of Indiana operates on a biweekly payroll cycle consisting of two calendar weeks starting Sunday and ending Saturday; pay dates are Wednesday in the second calendar week of each pay period and compensate the last completed pay period.

Checked

2026-08-10

Final wages must be paid on or before the next regularly scheduled payday on which the employee would normally have been paid if employment had continued.

Checked

2026-08-10

An Indiana withholding agent should provide each employee with a statement of the amount of state and county tax withheld.

Checked

2026-08-10

5%

An employee may assign wages for permitted purposes, including uniforms or necessary equipment, education or skills training, payroll or vacation advances, and employer merchandise or food; the assignment must follow Indiana's written-request rules and equipment deductions are capped at the lesser of $2,500 per year or 5 percent of weekly disposable earnings.

Checked

2026-08-10

Indiana Code permits employers to pay by direct deposit, and an employer is not required to provide multiple payment options and may offer only direct deposit.

Checked

2026-08-10

There are no general break laws in Indiana, and employers are not required by state law to provide breaks or meal periods.

Checked

2026-08-10

An employer generally must compensate an employee for time spent at mandatory meetings because it is time spent on the job under the employer's control.

Checked

2026-08-10

No general predictive scheduling requirement for private employers was located in IN's official sources as of 2026-08-13. This records the result of a documented search of 2 official sources, not a statement that no such law exists. Federal requirements continue to apply where applicable.

Checked

2026-08-13

No general expense reimbursement requirement for private employers was located in IN's official sources as of 2026-08-13. This records the result of a documented search of 2 official sources, not a statement that no such law exists. Federal requirements continue to apply where applicable.

Checked

2026-08-13

If an employee entitled to an accumulated commission payment owes child-support arrears, the employer must withhold from the lump sum up to the arrearage and the maximum percentage of disposable earnings permitted by the CCPA.

Checked

2026-08-10

If an employee entitled to a bonus payment owes child-support arrears, the employer must withhold from the lump sum up to the arrearage and the maximum percentage of disposable earnings permitted by the CCPA.

Checked

2026-08-10

If an employee entitled to severance pay owes child-support arrears, the employer must withhold from the lump sum up to the arrearage and the maximum percentage of disposable earnings permitted by the CCPA.

Checked

2026-08-10

Eligible state employees required to work on a designated holiday are compensated for the hours worked and may shift the holiday observance within the pay period, receive holiday pay, or bank compensatory time; hours actually worked count toward overtime.

Checked

2026-08-10

Effective July 1, 2015, Indiana repealed the Common Construction Wage Act, its state prevailing-wage law; federally funded projects covered by Davis-Bacon were not affected.

Effective

2015-07-01

Checked

2026-08-10

Indiana law requires payment for actual time worked and does not generally require employers to pay benefits such as sick or personal days when no work was performed.

Checked

2026-08-10

No general paid family medical leave requirement for private employers was located in IN's official sources as of 2026-08-13. This records the result of a documented search of 2 official sources, not a statement that no such law exists. Federal requirements continue to apply where applicable.

Checked

2026-08-13

When a summoned employee gives reasonable notice, the employer may not take adverse employment action because of jury service and may not require or request use of annual vacation or sick leave for responding to the summons, jury selection, or jury service.

Checked

2026-08-10

2.95%

The Indiana individual adjusted gross income tax rate for 2026 is 2.95 percent, and employers withhold state tax from employee wages subject to withholding.

Effective

2026-01-01

Checked

2026-08-10

Employees should complete Form WH-4, Employee's Withholding Exemption and County Status Certificate, providing exemptions and residence and work counties; both employer and employee should retain a copy and update it when information changes.

Checked

2026-08-10

When an employee receiving severance, accumulated sick pay, vacation pay, accumulated commissions, a bonus, or another lump-sum payment owes child-support arrears, the employer must withhold up to the arrearage and applicable CCPA maximum.

Checked

2026-08-10

Indiana reciprocity covers residents of Kentucky, Michigan, Ohio, Pennsylvania, and Wisconsin for state wage withholding; qualified nonresidents working in Indiana for 30 days or less may avoid withholding when the employer has a time-and-location system and the employee provides a proper WH-4AFF.

Checked

2026-08-10

For county income-tax withholding, an employee's county of residence and county of principal business or employment are determined on January 1; the employer applies the corresponding current county rate from Departmental Notice #1.

Effective

2026-01-01

Checked

2026-08-10

2.5% · wage base $9,500

Indiana employers pay the assigned unemployment premium rate on the first $9,500 of wages per employee per year; the general new-employer rate is 2.5 percent, with distinct construction and government rates.

Checked

2026-08-10

No general disability insurance requirement for private employers was located in IN's official sources as of 2026-08-13. This records the result of a documented search of 2 official sources, not a statement that no such law exists. Federal requirements continue to apply where applicable.

Checked

2026-08-13

Every covered Indiana employer, except statutory exemptions, must insure and keep insured its workers' compensation liability through an authorized carrier or furnish proof of financial ability and receive approval to self-insure.

Checked

2026-08-10

Indiana withholding filers use WH-1 filing deadlines based on their assigned schedule; early filers have greater than $1,000 average monthly withholding liability for the prior calendar year, while monthly filers have less than $1,000, and qualifying annual returns are due January 31.

Checked

2026-08-10

All covered employers must file quarterly wage reports by April 30, July 31, October 31, and January 31; contributory and reimbursable employers file electronically unless granted an electronic-filing waiver.

Checked

2026-08-10

All employers must file annual Form WH-3 by January 31; a business filing more than 25 W-2, W-2G, or 1099-R statements must file them electronically.

Checked

2026-08-10

All employers employing persons within Indiana must electronically report all newly hired or rehired employees to the state directory within 20 days of the hire or rehire date.

Checked

2026-08-10

25%

Indiana income withholding for child support applies to all employers and income payors regardless of size; child-support orders take priority over other claims except current taxes, and ordinary business garnishments are limited to 25 percent of disposable income.

Checked

2026-08-10

For Indiana employers with six or more employees, employment discrimination can include paying employees differently for the same work because of race, color, religion, sex, disability, national origin, ancestry, age, or military or veteran status.

Checked

2026-08-10

No general pay transparency requirement for private employers was located in IN's official sources as of 2026-08-13. This records the result of a documented search of 2 official sources, not a statement that no such law exists. Federal requirements continue to apply where applicable.

Checked

2026-08-13

No general salary history requirement for private employers was located in IN's official sources as of 2026-08-13. This records the result of a documented search of 2 official sources, not a statement that no such law exists. Federal requirements continue to apply where applicable.

Checked

2026-08-13

2%

If a court finds that an employer's failure to pay wages was not in good faith, it shall order payment of an amount equal to two times the wages due as liquidated damages, in addition to applicable fees and costs.

Effective

2015-07-01

Checked

2026-08-10

Covered employers must post Indiana unemployment information, and applicable official notices also include IOSHA, minimum wage, teen work-hour restrictions, workers' compensation, and equal employment rights.

Checked

2026-08-10

Indiana child-labor requirements apply to minors ages 14 through 17, and every employer of those teens must post the Notice of Teen Worker Hour Restrictions and follow the applicable maximum work hours.

Checked

2026-08-10

Indiana public-contract provisions require covered contractors to enroll in E-Verify, verify the work eligibility of newly hired employees, and require covered subcontractors to comply, while affirming that they do not knowingly employ unauthorized aliens.

Checked

2026-08-10

An entity must register with Indiana DWD in the first quarter it qualifies for an unemployment account, beginning the process after the first Indiana payroll is issued and before the first quarterly wage report deadline.

Checked

2026-08-10

Indiana employers must keep accurate payroll and employment records open for inspection and retain them for at least five years, including separate worker payment records, wage statements, quarterly reports, tax forms, and supporting disbursement documents.

Checked

2026-08-10

10%

Indiana DWD may assess $25 for a missing or inadequate quarterly wage report and a 10 percent penalty on unpaid unemployment contributions for negligence or intentional disregard of authorized rules.

Checked

2026-08-10

The Indiana Department of Labor cannot accept an administrative wage claim for work performed more than two years before the claim is filed.

Checked

2026-08-10