Indiana continues to be an attractive state for employers seeking a stable and predictable labor law environment. With regulations that closely align with federal standards, the state offers a familiar compliance landscape for organizations operating across multiple U.S. jurisdictions.

For employers expanding into Indiana or relocating employees to the state, understanding how Indiana’s labor laws compare with those of other states can help support smoother transitions, clearer communication, and consistent workforce practices.

Indiana is also an at-will employment state, meaning either the employer or the employee may end the employment relationship at any time, provided the reason is lawful.

Minimum wage & pay requirements

Indiana follows the federal minimum wage rate rather than establishing a higher state-specific threshold.

Currently, employers in Indiana follow these standards:

• Minimum wage: $7.25 per hour.
• Tipped employees: $2.13 per hour, provided tips bring total earnings to at least $7.25 per hour.

Indiana law requires employers to comply with the highest applicable wage rate. In practice, this means employees covered by the federal Fair Labor Standards Act (FLSA) are ensured to receive no less than the federal minimum wage.

Overtime

Indiana follows federal overtime rules under the FLSA, which simplifies compliance for multi-state employers.

Key points include:

• Overtime is paid at 1.5 times the regular rate of pay
• Applies to hours worked over 40 in a workweek
• No daily overtime requirement under Indiana law
• Exemption classifications align with federal standards

When employees transfer from states with different overtime rules, early conversations about pay practices can help set clear expectations.

The MOVEPLUS™ platform helps companies and mobility teams centralize mobility decisions, support relocations, and ensure alignment with company compliance requirements and coordination with legal, tax, and payroll partners across states.

Youth employment

Indiana places specific requirements on the employment of minors, particularly for younger workers.

Employers hiring minors should be aware that:

• Minors under 16 are required to obtain an Employment Certificate issued through the Indiana Youth Employment System (YES) before beginning work.
• Restrictions apply to:
  • Hours worked
  • Time of day worked
  • Types of permitted work
• Certain hazardous occupations are prohibited for minors

For businesses with seasonal or part-time staffing needs, especially in retail or hospitality, early planning around youth employment requirements can help prevent administrative delays.

Wage payment timing & methods

Indiana law outlines clear expectations for wage payment practices.

In general:

• Employees are generally paid at least semi-monthly (or biweekly, where permitted)
• Wages should be paid on regular, scheduled paydays
• All earned wages are required to be paid in full and on time

Accepted payment methods include direct deposit, paper checks, cash, and payroll cards though some options require employee consent.

Permitted wage deductions

Indiana takes a structured approach to wage deductions.

Employers may make deductions only for specific, permitted reasons, such as:

• Taxes and court-ordered garnishments
• Union dues (when authorized)
• Voluntary deductions with written employee authorization, including insurance premiums or approved purchases

Deductions for items like cash shortages, equipment damage, or uniforms are generally not permitted unless specific statutory requirements are met.

Clear documentation and consistent processes can help reduce disputes in this area.

Workplace posting & recordkeeping

Indiana employers are required to display state-mandated labor posters in accessible locations.

Common postings include:

• Indiana Minimum Wage notice
• Equal Employment Opportunity information
• IOSHA safety postings
• Youth employment notices (if applicable)

Employers are expected to maintain accurate records of hours worked, wages paid, and employee details, consistent with both state and federal requirements.

When structuring compensation and benefits for employees moving into Indiana, employers may find it helpful to align pay practices with the legal requirements of the worksite location rather than relying solely on home-state or headquarters standards.