Labor Rights in Indiana
Indiana offers among the leanest protections in the region: the $7.25 federal-level minimum wage, no paid sick or family leave, no adult break laws, and local governments are barred from setting higher standards. Its main worker protection is strict wage-payment enforcement with penalties for late pay.
Data last verified 2026-10-12
Workplace rights in Indiana at a glance
| Minimum wage (2026) | $7.25. Indiana law ties its floor to the federal FLSA rate, which has not changed since 2009. Local minimum wages are preempted, so $7.25 applies everywhere in the state. |
|---|---|
| Tipped minimum wage (2026) | $2.13 cash wage. Tips must bring total pay to $7.25 per hour; the employer must cover any shortfall in a pay period. |
| Overtime | 1.5x the regular rate after 40 hours in a workweek. No daily overtime. |
| Paid sick leave | No statewide mandate (local mandates are preempted). |
| Paid family and medical leave | No state program. |
| Meal breaks | No state requirement for adults beyond federal. Workers under 18 get one or two breaks totaling 30 minutes when working shifts of 6 or more hours. |
| Rest breaks | No state requirement beyond federal. |
| Right-to-work law | Yes |
| At-will employment | public policy |
| Final paycheck | Due on the next scheduled payday. If the employee has not provided a forwarding address, the employer may wait until 10 days after the employee demands wages or provides an address (IC 22-2-9-2). |
How Indiana compares to federal law
Indiana uses the federal minimum wage of $7.25 an hour, with no higher state rate. Overtime follows the federal Fair Labor Standards Act: time-and-a-half after 40 hours in a workweek. There is no state paid sick leave or paid family leave mandate, so the federal Family and Medical Leave Act (unpaid leave for eligible workers) is the only baseline.
Neighboring states
- Michigan$13.73 minimum wage, paid sick leave yes, right-to-work no.
- Ohio$11.00 minimum wage, paid sick leave no, right-to-work no.
- Kentucky$7.25 minimum wage, paid sick leave no, right-to-work yes.
- Illinois$15.00 minimum wage, paid sick leave yes, right-to-work no.
Compare all 50 states and DC side by side
Workplace laws change. This summary reflects state law as verified on 2026-10-12; confirm details with your state labor department before acting on it.
Frequently asked questions
Why is Indiana's minimum wage only $7.25?
Indiana law ties its minimum wage to the federal floor, which has not changed since 2009. State law also bars cities and counties from setting a higher local minimum wage.
Can my boss pay me $2.13 an hour in Indiana?
Only if you are a tipped employee and your tips bring your total pay to at least $7.25 per hour. If tips fall short in a pay period, your employer must make up the difference.
Does Indiana require paid sick leave?
No. Indiana has no statewide paid sick leave or paid family leave law, and local governments are barred from creating their own mandates.
When must I get my final paycheck in Indiana?
By the next scheduled payday. If you have not given your employer a forwarding address, they may wait until 10 days after you demand your wages or provide an address.