Like many other states, hourly workers in Indiana are subject to specific wage and hour laws that govern how they are compensated for their work. Employees and employers should understand these regulations to ensure they’re complied with.
As of January, 2024, these are the primary regulations that govern hourly pay in Indiana.
Minimum wage requirements
The minimum wage in Indiana is set at the federal minimum wage rate of $7.25 per hour. This rate applies to most workers, but there are exceptions, such as for younger workers and those in training positions. Employers must adhere to this minimum wage, which means all eligible employees are compensated at least at this rate for their standard work hours.
In Indiana, hourly employees are typically entitled to overtime pay for working more than 40 hours in a workweek. Overtime pay is 1.5 times the employee’s regular hourly rate. This means if an employee’s standard hourly wage is $10, their overtime rate would be $15 per hour. There are exemptions to this rule, so employees should check if their job category is exempt from overtime under the Fair Labor Standards Act.
Tipped wage specifics
Indiana law allows employers to pay a lower minimum wage for employees who receive tips, such as waitstaff in restaurants, as long as the combination of tips and wages equals at least the standard minimum wage.
The minimum cash wage for tipped employees is $2.13 per hour. If an employee’s tips combined with the cash wage don’t reach the standard minimum wage, the employer must make up the difference.
Meal and rest break guidelines
Indiana doesn’t have a specific law requiring meal or rest breaks for adult workers. If an employer chooses to provide breaks, there are federal guidelines to consider. Breaks lasting less than 20 minutes are generally considered part of the workday and must be paid. Meal breaks, typically lasting at least 30 minutes during which the employee is relieved of all work duties, don’t need to be paid.
Any worker who isn’t paid according to state law has the right to take legal action. Seeking legal guidance concerning wage and hour laws may make it easier to accomplish this important goal.