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Indiana employment rules for employers

Last verified Sep 24, 2026 · 5 verified rules · How we verify every rule

General information, not legal advice. This page is for general information only and isn’t legal, financial or tax advice. Laws vary by state and change; check the official source or talk to a qualified professional about your situation. Every rule on this page links to its official source.

Minimum wage

Indiana's minimum wage is $7.25 per hour for employers of 2 or more employees. (State Minimum Wage Laws (U.S. DOL Wage and Hour Division table, updated July 1, 2026))

What is the minimum wage?$7.25 per hourVerified Sep 24, 2026 · 2 official sources

Indiana's minimum wage is $7.25 per hour for employers of 2 or more employees. (State Minimum Wage Laws (U.S. DOL Wage and Hour Division table, updated July 1, 2026))

“Indiana Applicable to employers of 2 or more employees Basic Minimum Rate (per hour): $7.25”

State Minimum Wage Laws (U.S. DOL Wage and Hour Division table, updated July 1, 2026) · dol.gov

“Both the federal and Indiana state minimum wage increased from $6.55 per hour to $7.25 per hour, effective July 24, 2009.”

Indiana Department of Labor, Indiana Minimum Wage Law poster (PDF) · in.gov

dol.gov · in.gov

Minimum wage by state

Used in: How to hire your first employee

Paydays

How often do you have to pay?Not verified yetCheck the official source

We have not verified this rule for Indiana yet. Check the official source: dol.gov.

Payday laws by state

Used in: How to hire your first employee

Meal breaks

Do adult employees get a meal break?No state ruleVerified Sep 24, 2026 · 2 official sources

No state meal break requirement for adult employees in private employment in Indiana; Indiana's break rules apply to minors only. (Minimum Length of Meal Period Required under State Law for Adult Employees in Private Sector (U.S. DOL WHD table, January 1, 2023))

“1/ The following 35 jurisdictions also have separate provisions requiring meal periods specifically for minors (when minors are covered by two provisions, employer must observe the higher standard): Alabama, Alaska, California, Colorado, Delaware, Florida, Hawaii, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Nebraska, Nevada, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, Utah, Virginia, Washington, West Virginia, Wisconsin, Guam, and Puerto Rico.”

Minimum Length of Meal Period Required under State Law for Adult Employees in Private Sector (U.S. DOL WHD table, January 1, 2023) · dol.gov

“In general, Indiana law does not require employers to provide adult employees lunch breaks or other breaks.”

Indiana state FAQ: Is there any information regarding Indiana lunch or breaks laws? · faqs.in.gov

dol.gov · faqs.in.gov

Break laws by state

Rest breaks

Do adult employees get paid rest breaks?No state ruleVerified Sep 24, 2026 · 2 official sources

No state rest break requirement for adult employees in private employment in Indiana. (Minimum Paid Rest Period Requirements Under State Law for Adult Employees in Private Sector (U.S. DOL WHD table, January 1, 2023))

“1 States not listed do not require paid rest periods.”

Minimum Paid Rest Period Requirements Under State Law for Adult Employees in Private Sector (U.S. DOL WHD table, January 1, 2023) · dol.gov

“In general, Indiana law does not require employers to provide adult employees lunch breaks or other breaks.”

Indiana state FAQ: Is there any information regarding Indiana lunch or breaks laws? · faqs.in.gov

dol.gov · faqs.in.gov

Break laws by state

Final paycheck

If you fire someone, when is the last paycheck due?Not verified yetCheck the official source

We have not verified this rule for Indiana yet. Check the official source: faqs.in.gov.

If an employee quits, when is the last paycheck due?Not verified yetCheck the official source

We have not verified this rule for Indiana yet. Check the official source: faqs.in.gov.

Final paycheck laws by state · Final paycheck date calculator

Used in: How to fire an employee in your state · Employee no call, no show: what to do · An employee resigned: what to do next

Unused vacation (PTO) at separation

Do you have to pay out unused vacation when someone leaves?Not verified yetCheck the official source

We have not verified this rule for Indiana yet. Check the official source: faqs.in.gov.

PTO payout laws by state

Used in: How to fire an employee in your state · An employee resigned: what to do next

Do you have to give paid sick leave?Not verified yetCheck the official source

We have not verified this rule for Indiana yet. Check the official source: in.gov.

Paid sick leave laws by state

At-will employment

Yes. Indiana follows at-will employment, with these exceptions (Farr v. St. Francis Hospital & Health Centers, No. 1:06-cv-00779-SEB-JMS (S.D. Ind. Sept. 26, 2007), quoting Hamblen v. Danners, Inc., 478 N.E.2d 926, 929 (Ind. Ct. App. 1985)):

Public policy exception: recognized?Recognized, limitedVerified Sep 24, 2026 · 2 official pages from the same agency

Indiana recognizes only a narrow public policy exception: an employee fired for exercising a clear statutory right (Frampton, workers' compensation) or for refusing to commit an illegal act for which the employee would be personally liable (McClanahan) has a wrongful discharge claim. (Farr v. St. Francis Hospital & Health Centers, No. 1:06-cv-00779-SEB-JMS (S.D. Ind. Sept. 26, 2007), citing Montgomery v. Bd. of Trustees of Purdue Univ., 849 N.E.2d 1120, 1128 (Ind. 2006))

“The public policy exception to the at-will doctrine can be “generalized to the proposition that an employee who has been fired for exercising a statutory right or refusing to violate the law has a claim for wrongful discharge.””

Farr v. St. Francis Hospital & Health Centers, No. 1:06-cv-00779-SEB-JMS (S.D. Ind. Sept. 26, 2007), citing Montgomery v. Bd. of Trustees of Purdue Univ., 849 N.E.2d 1120, 1128 (Ind. 2006) · govinfo.gov

““On rare occasions,” Indiana Courts have recognized “narrow exceptions” to the at-will doctrine.”

Slinger v. Federal Express Corp., No. 1:11-cv-01482-JMS-MJD (S.D. Ind. Mar. 11, 2013), citing Meyers v. Meyers, 861 N.E.2d 704, 706 (Ind. 2007), and McClanahan v. Remington Freight Lines, 517 N.E.2d 390 (Ind. 1988) · govinfo.gov

govinfo.gov · govinfo.gov

Implied contract exception: recognized?Not verified yetCheck the official source

We have not verified this rule for Indiana yet. Check the official source: govinfo.gov.

Good faith and fair dealing exception: recognized?Not recognizedVerified Sep 24, 2026 · 2 official pages from the same agency

Indiana does not recognize a duty of good faith and fair dealing owed by an employer to an at-will employee. (Farr v. St. Francis Hospital & Health Centers, No. 1:06-cv-00779-SEB-JMS (S.D. Ind. Sept. 26, 2007), quoting Hamblen v. Danners, Inc., 478 N.E.2d 926, 929 (Ind. Ct. App. 1985))

“(“Indiana does not recognize that a duty of good faith and fair dealing is owed by an employer to an employee at will.”)”

Farr v. St. Francis Hospital & Health Centers, No. 1:06-cv-00779-SEB-JMS (S.D. Ind. Sept. 26, 2007), quoting Hamblen v. Danners, Inc., 478 N.E.2d 926, 929 (Ind. Ct. App. 1985) · govinfo.gov

“In addition, Farr’s state law claims were properly dismissed. He claims the employee handbook gave him the right to be treated fairly, but that he wasn’t—in breach of the covenant of fair dealing. Indiana, however, adheres to the employment-at-will doctrine, and Farr was an at-will employee.”

Farr v. St. Francis Hospital & Health Centers, No. 08-3203 (7th Cir. June 29, 2009) (affirming dismissal of the covenant claim) · govinfo.gov

govinfo.gov · govinfo.gov

At-will employment by state

Used in: How to write up an employee (the right way, in your state) · How to put an employee on a performance improvement plan · Employee no call, no show: what to do · Insubordination: what counts, and how to handle it

Service letter (reason for termination)

Do you have to give a written reason for the termination on request?Not verified yetCheck the official source

We have not verified this rule for Indiana yet. Check the official source: iga.in.gov.

Used in: How to write up an employee (the right way, in your state) · How to fire an employee in your state

Separation notice

Do you have to give a separation notice when someone leaves?Not verified yetCheck the official source

We have not verified this rule for Indiana yet. Check the official source: in.gov.

Used in: How to fire an employee in your state

Final pay after firing, neighbors

StateFinal pay after firing
IndianaNot verified
IllinoisNext regular payday
MichiganNext regular payday
OhioNot verified
KentuckyNext payday or 14 days, whichever is later

Only verified rules are shown. "Not verified" means we have not checked that state's rule yet; open its rulebook for the official source.

What an employee costs in Indiana

Beyond the salary, an employer pays these payroll taxes on each employee. Rates for 2026, from official sources:

A worked example: $40,000 salary

Estimate, before benefits and workers' comp; check with your payroll provider. It assumes a new employer, a full year of wages and the full FUTA credit.

Tax on a $40,000 salaryPer year
Social Security, 6.2% (Topic 751)$2,480
Medicare, 1.45% (Topic 751)$580
Federal unemployment (FUTA), 0.6% of the first $7,000 (Topic 759)$42
Indiana unemployment insurance, new-employer rate 2.50% of the first $9,500 (DOL, July 2026)$238
Estimated total employer taxes$3,340

Estimate: $3,340 is about 8.3% on top of the salary. It leaves out health insurance, retirement contributions, workers' compensation, state disability or paid leave programs and any local taxes.

Federal wage enforcement in Indiana

In FY2021 to FY2025, the U.S. Department of Labor's Wage and Hour Division concluded 821 cases in Indiana (n = 821), finding $12,278,801 in back wages owed to 11,035 employees (DOL enforcement data). Enforcement data is not a violation rate: it shows where federal investigators looked, and many states handle wage claims through their own agencies. Wage violations by industry.

Changes coming in 2027

We have not found an announced 2027 change for Indiana employers in official sources yet. All 2027 changes by state.

Changelog

Questions about Indiana employer rules

What is the minimum wage in Indiana?

Indiana's minimum wage is $7.25 per hour for employers of 2 or more employees. (State Minimum Wage Laws (U.S. DOL Wage and Hour Division table, updated July 1, 2026))

Is Indiana an at-will state?

Yes. Indiana follows at-will employment, with exceptions. Of the 3 common exceptions, we have verified 2, and 1 is recognized in Indiana (Farr v. St. Francis Hospital & Health Centers, No. 1:06-cv-00779-SEB-JMS (S.D. Ind. Sept. 26, 2007), quoting Hamblen v. Danners, Inc., 478 N.E.2d 926, 929 (Ind. Ct. App. 1985)).

Sources (14)

Checked Sep 24, 2026 · How we verify every rule · Report an error