The Indiana Labor Law Guide

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.

Adults (18+)

Indiana law does not require meal or rest breaks for adults. Under federal law (FLSA):

• Breaks under 20 minutes must be paid.
• Meal breaks (typically 30 minutes or more) may be unpaid if the employee is fully relieved of duties.

Minors (under 18)

Minors who work 6 or more consecutive hours must be given one or two breaks totaling at least 30 minutes.

Vacation leave

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.

Paid sick leave

Indiana has no state law requiring private employers to provide paid or unpaid sick leave.

Holidays

Indiana law does not require private employers to offer paid or unpaid holiday leave.

Youth Employment System (YES)

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.

Minors ages 14-15

Indiana places specific limits on the hours and times 14- and 15-year-olds may work.

When school is in session:

• Maximum 3 hours per school day
• Maximum 18 hours per school week
• May not work during school hours

When school is not in session:

• Maximum 8 hours per day
• Maximum 40 hours per week

Time of day:

• 7:00 a.m. to 7:00 p.m.
• Extended to 9:00 p.m. from June 1 through Labor Day

Minors ages 16-17

16- and 17-year-olds may work the same hours and days as adults under Indiana law.

• No daily or weekly hour limits
• No time-of-day restrictions
• No parental consent required for extended or late hours
• Federal hazardous occupation restrictions still apply

Breaks

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.