Indiana employment law overview

Indiana has some laws that provide greater protections to employees than federal law, including broader antidiscrimination coverage and emergency responder leave, but generally follows federal law with respect to topics such as the minimum wage, overtime pay and occupational safety. 

Select Indiana employment requirements are summarized below to help an employer understand the range of employment laws affecting the employer-employee relationship in the state. An employer must comply with federal, state, and local law. Where there is overlap, complying with the law that offers the greatest rights or benefits to the employee will generally apply. 

Equal Employment Opportunity (EEO) and worker protections 

Indiana employers may be required to comply with requirements related to EEO and worker protections.   

Fair employment practices 

The Indiana Civil Rights Law (ICRL), which applies to private employers that have six or more employees within the state, prohibits employers from discriminating against employees on the basis of protected characteristics including, but not limited to: 

• Race; 
• Religion; 
• Color; 
• Sex; 
• Disability; 
• National origin; 
• Ancestry; and 
• Veteran status. 

The Indiana Employment Discrimination Against Disabled Persons Act (IEDADPA) applies to employers with 15 or more employees. The IEDADPA prohibits discrimination against qualified individuals with disabilities and requires a covered employer to provide reasonable accommodations for such individuals. 

The Indiana Age Discrimination Act (IADA) applies to employers with one or more employees, but does not apply to employers that are subject to the federal Age Discrimination in Employment Act (ADEA), which covers employers with 20 or more employees. The IADA applies to individuals ages 40 to 74. 

Equal pay 

Indiana’s Minimum Wage Law prohibits pay discrimination on the basis of sex for equal work on jobs that require equal skill, effort and responsibility and that are performed under similar working conditions. An employer is permitted to base differences in pay on other legitimate, nondiscriminatory factors (e.g., seniority or merit). The law applies to employers with two or more employees and that are not covered by the federal Fair Labor Standards Act. 

Be aware that where there is overlap between federal, state and/or local law, complying with the law that offers the greatest rights or benefits to the employee will generally apply. 

Pay transparency 

Indiana does not have a pay transparency law applicable to private employers. 

Salary history inquiry restrictions 

Indiana does not restrict an employer from inquiring into or relying upon an applicant’s salary history. 

Employee wage disclosure rights  

Indiana does not have a wage disclosure law applicable to private employers. 

Pregnancy accommodation 

An employee may request an accommodation relating to their pregnancy, childbirth or related medical conditions. An employer with 15 or more employees must respond to the employee’s request within a reasonable time. The employer is not required, however, to provide the accommodation unless existing federal or state law requires that accommodation be made. 

Breastfeeding breaks 

An Indiana employer with 25 or more employees must provide breaks for employees who need to express breast milk. To the extent reasonably possible, the employer must: 

• Provide a private location (other than a toilet stall) where an employee can express breast milk during any period away from the employee’s assigned duties; and 
• Provide a refrigerator or other cold storage space or allow the employee to provide her own portable cold storage device for keeping milk that has been expressed until the end of the workday. 

Access to personnel files 

Indiana law does not require private employers to provide employees with access to their personnel files. 

Whistleblower protections 

Indiana law protects employees who have engaged in protected activities from retaliation and has a statutory law that protects employees of public contractor who engage in whistleblowing. 

Scheduling 

Indiana does not have a scheduling law applicable to private employers.   

Recruiting and hiring 

Indiana employers may be required to comply with requirements related to recruiting and hiring.  

Credit checks 

Indiana does not have requirements for private employers related to credit checks.   

Ban the Box and Fair Chance 

Indiana does not have a state ban-the-box or fair chance law applicable to private employers. 

E-Verify 

Indiana law requires state and local government contractors and businesses receiving grants of more than $1,000 from a state agency or subdivision to enroll in the E-Verify program.  

Wage and hour 

Indiana employers may be required to comply with certain wage and hour requirements.   

Minimum wage 

Indiana’s minimum wage rate is $7.25 per hour, the same as the federal rate. There are certain exemptions (e.g., tipped employees). Indiana’s Minimum Wage Law applies to employers that have two or more employees and that are not covered by the federal Fair Labor Standards Act. 

Overtime 

Indiana employers must pay nonexempt employees one and-one-half times the employee’s regular rate of pay for any hours worked over 40 in a workweek. 

Meal and rest breaks 

Employees are not entitled to meal or rest breaks under Indiana law. However, the Indiana Department of Labor recommends that if any minor works or is scheduled to work more than six hours in a shift, the employer provides the minor with at least two 15-minute rest breaks or one 30-minute rest break. 

Child labor 

Child labor laws in Indiana restrict the occupations in which minors may be employed and the number of hours and times during which they may work. 

A child aged under 14 may not be employed in any occupation except as a farm laborer, domestic service worker, golf caddie or newspaper carrier. 

Indiana prohibits minors between 16 and 18 years of age from working in any occupation that is dangerous to life or limb or injurious to health or morals. 

Indiana restricts the times a minor under age 18 can work, which vary depending on the employee’s age. All minors who are scheduled to work six or more consecutive hours are entitled to one or two rest breaks totaling at least 30 minutes. 

Pay and benefits 

Indiana employers may be required to follow certain requirements with respect to employee pay and benefits.   

Wage payment methods  

Wages must be paid in cash or by negotiable check, draft or money order. Employees may also be paid by electronic transfer of funds to a financial institution designated by the employee. 

Pay frequency and lag time 

Indiana law requires that employees be paid at least semimonthly, or biweekly if requested by the employee. Employees must be paid no later than 10 business days after the regular pay period ends. 

Pay deductions 

An employer may make deductions from an employee’s wages if required by state or federal law or court order, including but not limited to child support withholding, creditor garnishments and tax levies. 

Indiana allows voluntary wage assignments only in limited circumstances. Any direction given by an employee to an employer to make a wage deduction constitutes an assignment of wages. An assignment of wages is valid only if it is: 

• Written; 
• Signed by the employee; 
• Revocable at any time upon the employee’s written notice to the employer; 
• Agreed to in writing by the employer; and 
• Delivered to the employer within 10 days after its execution. 

Only certain categories of deductions are allowed, including, but not limited to: 

• Insurance premiums; 
• Charitable contributions; 
• Labor union dues; and 
• Employee contributions to a hospital service or medical expense plan. 

Pay statements 

Every employer subject to Indiana’s Minimum Wage Law must furnish each employee with a pay statement each pay period showing the following: 

• Hours worked; 
• Wages paid; and 
• Itemized deductions. 

Wage theft 

Indiana does not have a wage theft law applicable to private employers. 

Health care continuation 

Indiana does not have a state health care continuation law applicable to private employers.

Temporary disability insurance 

Indiana does not have requirements for private employers related to temporary disability insurance. 

Time off and leaves of absence 

Indiana employers may be required to follow certain requirements with respect to time off and leaves of absence.

Family and medical leave 

Indiana does not have a state family and medical leave law applicable to private employers. 

Paid sick leave 

Indiana does not have a state paid sick leave law applicable to private employers. 

Other time off requirements 

Indiana has laws related to time off and leaves of absence, including but not limited to: 

• Military family leave; 
• Military leave; 
• Civil air patrol leave; 
• Emergency responder leave; 
• Mobile support unit leave; 
• Jury duty leave;
• Witness leave; and 
• School conference leave. 

Health and safety 

Indiana employers may be required to follow certain requirements with respect to employee health and safety.   

Occupational safety and health 

The Indiana Occupational Safety and Health Division of the Indiana Department of Labor administers the Indiana Occupational Safety and Health Act (Indiana OSH Act) pursuant to a State Plan that has been submitted to, and approved by, the federal Occupational Safety and Health Administration. The Indiana OSH Act is mostly identical to the federal OSH Act and expressly incorporates by reference the federal regulations 

Drug and alcohol testing 

Indiana does not have a law that specifically governs workplace drug and alcohol testing by private sector employers, except for child care centers and contractors for certain government-funded projects. Employers may establish their own drug and alcohol testing policies and require employees and job applicants to submit to drug and alcohol tests, as long as the testing program complies with the ADA, the Indiana Employment Discrimination Against Disabled Persons Law, collective bargaining agreements and other laws that protect workers from discrimination or violations of privacy. 

Smoke-free workplace 

Indiana law prohibits smoking in enclosed areas of places of employment and within eight feet of any public entrance to a place of employment. Exceptions apply. 

An employer is required to inform employees of the smoking prohibition and post proper signage. 

Weapons in the workplace 

An Indiana employer may not prohibit employees from keeping a legally possessed firearm or ammunition in any of the following places in his or her vehicle: 

• The locked trunk; and 
• The glove compartment or otherwise out of plain sight, if the vehicle is locked. 

An employer may prohibit an employee from carrying a firearm or ammunition elsewhere on its property. 

An employer generally is prohibited from requiring an employee to disclose whether he or she owns, possesses, uses or transports a firearm or ammunition. 

Safe driving practices 

Indiana prohibits holding or using a telecommunications device while driving. However, the device may be used in conjunction with hands-free or voice operated technology or to call 911 to report a bona fide emergency. 

Organizational exit 

Indiana employers may be required to follow certain requirements when employees exit the organization.   

Final pay 

An Indiana employer generally must pay an employee’s final wages by the next regular payday, whether the employee voluntarily quit or was involuntarily terminated. 

Mass layoffs 

Indiana does not have its own version of the federal WARN Act. 

AI in employment 

Indiana does not have a law related to AI in employment applicable to private employers.