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Indiana

Employment Law & Compliance

low
Overall Complexity
low
Wage & Hour
low
Leave Programs
low
Hiring Rules
low
Local Law Exposure
$7.25
Min Wage/Hr
Not Required
Paid Sick Leave
No
PFML Program
Not Required
Pay Transparency

Indiana maintains a low-complexity, business-friendly employment compliance environment that closely mirrors federal standards. The state minimum wage matches the $7.25 federal baseline, and broad state preemption statutes block local municipalities from creating independent mandates. Employers face no mandatory paid leave, pay transparency laws, or daily overtime requirements, reducing administrative burden.

Wage & Hour

State Minimum Wage$7.25/hr
Effective Date2009-07-24
Wage IndexedNo
Next Scheduled ChangeNone scheduled
Tipped Minimum Wage$2.13/hr
Tip Credit AllowedYes
Youth/Training Wage$4.25/hr
Local Minimum Wage PossibleNo

Indiana defaults to the federal minimum wage baseline of $7.25 per hour. State statute explicitly bars local municipalities from setting independent minimum wages or local employee benefits.

Leave Programs

Paid Sick Leave RequiredNo
Sick Leave LawN/A
Employer ThresholdN/A
Accrual RateN/A
Annual Use CapN/A
Carryover RequiredN/A
PFML ProgramNone
PFML Max WeeksN/A

Hiring & Workplace Rules

Pay Transparency RequiredNo
Job Posting DisclosureNot required
Salary History BanNo
Salary History RestrictedNo
Ban the BoxNo
Cannabis Off-Duty ProtectionNo
Worker Classification Testright to control
Harassment Training RequiredNo

Final Paycheck Rules

Termination: Involuntarily terminated employees must be paid by the next regular payday.
Resignation: Resigning employees must be paid by the next regular payday.
Vacation payout and policy terms depend entirely on company policy or written employment agreements.

Non-Compete Rules

Non-compete agreements are enforceable if reasonable in scope, duration, and protective of legitimate business interests.

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How Indiana Compares to Neighboring States

StateMin WagePaid Sick LeavePFMLComplexity
Indiana ★$7.25NoNolow
Illinois$15YesNovery high
Kentucky$7.25NoNolow
Michigan$12.48YesNohigh
Ohio$10.7NoNolow

Frequently Asked Questions — Indiana Employment Law

What is the minimum wage in Indiana?

The minimum wage in Indiana is $7.25 per hour as of 2009-07-24. Indiana defaults to the federal minimum wage baseline of $7.25 per hour. State statute explicitly bars local municipalities from setting independent minimum wages or local employee benefits.

Does Indiana require paid sick leave?

Indiana does not have a statewide paid sick leave law. Employers are not required by state law to provide paid sick leave, though some local jurisdictions may have their own requirements.

Does Indiana have a Paid Family and Medical Leave program?

Indiana does not have a state-administered Paid Family and Medical Leave program. Federal FMLA provides up to 12 weeks of unpaid, job-protected leave for qualifying employers and employees.

Does Indiana require pay transparency?

Indiana does not have a statewide pay transparency law requiring employers to disclose salary ranges.

When must employers pay final wages in Indiana?

Involuntarily terminated employees must be paid by the next regular payday. For resignations: Resigning employees must be paid by the next regular payday. Vacation payout and policy terms depend entirely on company policy or written employment agreements.

Are non-compete agreements enforceable in Indiana?

In Indiana, non-compete agreements are enforceable. Non-compete agreements are enforceable if reasonable in scope, duration, and protective of legitimate business interests.

Is Indiana an at-will employment state?

Indiana operates under the at-will employment doctrine, allowing terminations at any time for any legal reason, subject to narrow public policy exceptions.

Official Source

Indiana Department of Labor (IDOL)

View Agency →

More Indiana Resources

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Data Methodology

DataTactic researchers verify employment law data directly against official government sources — Indiana Department of Labor (IDOL) publications, state statutes, and agency websites. Each data point is cross-referenced against primary sources before publication. Records are reviewed and updated when laws or requirements change.

Last verified: 2026-09-18 · Statewide baseline only. Local rules may impose additional requirements. This is not legal advice.