Indiana HR laws for employers (2026)
The Indiana rules employers ask about most: minimum wage, overtime, final pay, unused vacation, paid sick leave and breaks.
Indiana employment law at a glance
| Minimum wage | $7.25 per hour (federal minimum applies) |
|---|---|
| Tipped cash wage | $2.13 per hour |
| Overtime | No daily overtime. Time and a half after 40 hours in a workweek (state law mirrors the FLSA). |
| Final pay when fired | Next regular payday for the pay period in which the separation happened. Verify |
| Final pay when an employee quits | Next regular payday for the pay period in which the separation happened. Verify |
| Unused vacation / PTO at separation | Generally required. Indiana DOL treats accrued vacation as compensation owed at separation, subject to conditions in the employer's written policy or contract. |
| Paid sick leave | No statewide mandate, and state law bars local governments from requiring paid leave beyond state or federal law. |
| Meal breaks | No state requirement for adult employees (minors only). |
| Rest breaks | No state requirement. |
Minimum wage note: Indiana's minimum wage equals the federal $7.25 and covers employers of 2+ employees. No increase is scheduled. Workers under 20 may be paid $4.25 for their first 90 days.
Verify means we could not confirm that item from an official Indiana or US Department of Labor source, so check it with the state before relying on it.
Other Indiana rules to know
- Local preemption: cities and counties cannot require benefits, leave or working conditions beyond state or federal law (Ind. Code 22-2-16-3).
- Unpaid wage claims can bring liquidated damages of up to twice the unpaid wages, plus attorney's fees, if the employer did not act in good faith.
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Frequently asked questions
What is the minimum wage in Indiana in 2026?
$7.25 per hour (federal minimum applies), effective July 24, 2009. Indiana's minimum wage equals the federal $7.25 and covers employers of 2+ employees. No increase is scheduled. Workers under 20 may be paid $4.25 for their first 90 days.
When is a final paycheck due in Indiana?
If the employer ends employment: Next regular payday for the pay period in which the separation happened. If the employee quits: Next regular payday for the pay period in which the separation happened.
Does Indiana require paying out unused vacation?
Generally required. Indiana DOL treats accrued vacation as compensation owed at separation, subject to conditions in the employer's written policy or contract.
Is paid sick leave required in Indiana?
No statewide mandate, and state law bars local governments from requiring paid leave beyond state or federal law.
Sources
- Indiana DOL - Minimum wage poster
- Indiana FAQ - Accrued vacation pay at separation
- US DOL - State Minimum Wage Laws (updated July 1, 2026)
- US DOL - Minimum Wages for Tipped Employees (July 1, 2026)
- US DOL - State Meal Break Requirements
- Ezel - Indiana final paycheck deadlines (secondary)
- Ezel - Indiana paid sick leave requirements (secondary)
HR laws in other states
This page is general information for employers, not legal advice. Employment laws change and can vary by city and county. Confirm details with the state labor department or an employment attorney. Read our disclaimer.