The Indiana Labor Law Guide

Minimum wage is the lowest hourly pay rate that employers are legally obligated to pay employees. The federal minimum wage is a wage baseline, but different states, cities, and regions can adopt their own rates.

$7.25 per hour for most employees (as of 2026)

• State vs. Federal: Indiana has a state minimum wage law (Ind. Code § 22-2-2-4), but it expressly adopts the federal minimum wage rate. Therefore, the rate is $7.25.

• Local Rates: Indiana state law generally prohibits local governments (cities/counties) from setting a minimum wage higher than the state rate.

Tipped minimum wage is the lowest hourly pay rate employers are legally obligated to pay employees who earn a significant portion of their income through tips.

$2.13 per hour for most tipped employees

• Tip Credit: Employers may claim a tip credit of up to $5.12 per hour.

• Requirement: If an employee’s tips combined with the cash wage of $2.13 do not equal at least the federal minimum wage of $7.25 per hour, the employer must make up the difference.

Indiana generally follows the federal Fair Labor Standards Act (FLSA) regarding overtime.

• Rule: Employers must pay non-exempt employees 1.5 times their regular rate of pay for all hours worked over 40 hours in a workweek.

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Meal and Rest Break Laws — Indiana (2026)

Adults (18+): Indiana law does not require employers to provide meal or rest breaks to adults. Under federal law (FLSA):

• Breaks under 20 minutes must be paid.

• Meal breaks (typically 30+ minutes) may be unpaid if the employee is fully relieved of duties.

Minors (Under 18): Indiana law requires that minors who work 6 or more consecutive hours must be given one or two breaks totaling at least 30 minutes.

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Vacation Leave: Indiana does not require employers to provide paid or unpaid vacation leave. Employers may offer vacation leave at their discretion.

• Note: If a company policy promises vacation pay, Indiana courts generally enforce the policy terms regarding 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.

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Youth Employment System (YES)

Indiana no longer issues traditional work permits. Instead, employers must register 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 law places specific limits on the hours and times minors aged 14 and 15 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 Restrictions

• 7:00 a.m. – 7:00 p.m.

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

Minors Ages 16–17

Minors aged 16 and 17 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 law does not require employers to provide meal or rest breaks to minors, regardless of the number of hours worked. Any breaks provided are governed by employer policy and applicable federal wage-and-hour rules.

Hiring
Hiring (Anti-Discrimination) The Indiana Civil Rights Law prohibits discrimination in employment based on:

• Race

• Color

• Religion

• National origin

• Ancestry (Specific to Indiana)

• Sex (including pregnancy, childbirth, and related medical conditions)

• Disability

• Age (specifically ages 40 to 75, applicable to employers with one or more employees)

• Status as a Veteran (Specific to Indiana)

Background Checks

• Expungement: Private employers generally cannot ask about, or use as a basis for rejection, criminal records that have been expunged or sealed.

• Compliance: Employers must comply with the federal Fair Credit Reporting Act (FCRA) when using third-party background checks.

Firing
Indiana supports “at-will” employment laws. All Indiana employers have the right to terminate employees at will for nearly any reason and no reason at all, as long as they’re not violating the law.