The wage, hour, break, and scheduling rules that apply when you employ people in Indiana.
Last updated · September 28, 2026
Minimum wage is the lowest hourly rate an employer can legally pay. The federal rate sets a floor, and states, cities, and regions can adopt their own.
Indiana has a state minimum wage law (Ind. Code 22-2-2-4), but it adopts the federal rate, so most employees earn $7.25 per hour.
State law generally bars local governments (cities and counties) from setting a minimum wage above the state rate.
Tipped minimum wage is the lowest hourly cash wage for employees who earn a big share of their pay through tips.
Employers may claim a tip credit of up to $5.12 per hour.
If an employee's tips plus the $2.13 cash wage do not reach the federal minimum of $7.25 per hour, the employer must make up the difference.
Indiana generally follows the federal Fair Labor Standards Act (FLSA) for overtime.
Employers must pay non-exempt employees 1.5 times their regular rate for all hours worked over 40 in a workweek.
Indiana law does not require meal or rest breaks for adults. Under federal law (FLSA):
Indiana no longer requires employers to give minors a meal or rest break, no matter how many hours they work. The Indiana Department of Labor recommends, but does not require, two 15-minute breaks or one 30-minute break for any minor who works more than 6 hours in a shift.
Indiana does not require paid or unpaid vacation leave. Employers may offer it at their discretion.
If a company policy promises vacation pay, Indiana courts generally enforce the policy terms on accrual and payout upon termination.
Indiana has no state law requiring private employers to provide paid or unpaid sick leave.
Indiana law does not require private employers to offer paid or unpaid holiday leave.
Indiana no longer issues traditional work permits. Employers must register the minors they hire through the Indiana Youth Employment System (YES) before employment begins, as required by the Indiana Department of Labor.
Indiana places specific limits on the hours and times 14- and 15-year-olds may work.
When school is in session:
When school is not in session:
Time of day:
16- and 17-year-olds may work the same hours and days as adults under Indiana law.
Indiana does not require meal or rest breaks for minors, no matter how many hours they work. Any breaks provided follow employer policy and applicable federal wage-and-hour rules.
This guide is for general information only and is not legal advice. Labor laws change often, and how they apply depends on your specific situation. Always confirm current requirements with the relevant state labor agency or your own legal counsel before you rely on them.
Set a weekly hours limit that warns you or blocks the schedule, and get flagged when someone has a short turnaround between shifts.
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