Minimum Wage Law Summaries
Indiana, Minimum Wage Law Summaries
Indiana's minimum wage law is codified in the Indiana Statutes Annotated at Title 22, Article 2, Chapter 2. The full text of the law is available beginning at Wages-Hours ¶15-41,001 .
DEFINITIONS
“Employer” means any individual, partnership, association, limited liability company, corporation, business trust, the state, or other governmental agency or political subdivision during any workweek in which they have two or more employees. However, the term does not include employers that are subject to the minimum wage provisions of the federal Fair Labor Standards Act (Sec. 22-2-2-3).
“Employee” means any person employed or permitted to work or perform any service for remuneration or under any contract of hire, written or oral, express or implied, by an employer in any occupation, but does not include (Sec. 22-2-2-3):
minors less than 16 years of age;
persons engaged in an independently established trade, occupation, profession, or business who, in performing the services in question, are free from control or direction both under a contract of service and in fact;
persons performing services not in the course of the employing unit's trade or business;
employees paid on a commission basis;
persons employed by their own parent, spouse, or child;
members of religious orders performing services for that order; ordained, commissioned, or licensed ministers, priests, rabbis, sextons, or Christian Science readers; or volunteers performing services for religious or charitable organizations;
student nurses in the employ of hospitals or approved nurses' training schools while enrolled and regularly attending classes, or student funeral directors and embalmers as a part of their school or apprenticeship requirements to secure an embalmer's or funeral director's license from the state, or during their attendance at any schools required by law for securing an embalmer's or funeral director's license;
medical school graduates when employed as interns or resident physicians by any accredited hospital;
students performing services for any school, college, or university in which they are enrolled and are regularly attending classes;
persons with physical or mental disabilities performing services for nonprofit organizations organized primarily for the purpose of providing employment for persons with disabilities or for assisting in their therapy and rehabilitation;
insurance agents, insurance solicitors, and outside salespersons, if all their services are performed for remuneration solely by commission;
persons performing services for any camping, recreational, or guidance facilities operated by a charitable, religious, or educational nonprofit organizations;
persons engaged in agricultural labor (as broadly defined);
executive, administrative, or professional employees who have the authority to employ or discharge employees and who earn at least $150 a week;
outside salespersons;
employees who are not employed for more than four weeks in any four consecutive three-month periods;
employees whose qualifications and maximum hours of service may be established by the Interstate Commerce Commission under the federal Motor Carrier Act or employees of carriers regulated by state law.
COVERAGE
All employers with two or more employees during any workweek, including the state of Indiana and its political subdivisions, are covered by Indiana's minimum wage law. However, employers subject to the minimum wage provisions of the federal Fair Labor Standards Act are not covered, and certain workers are not “employees” (see DEFINITIONS above) as defined in the minimum wage law (Sec. 22-2-2-3).
EXCEPTIONS
Minors less than 16 years of age; independent contractors; commissioned salespersons; employees of immediate family members; members, clergy, and volunteers of religious or charitable organizations; interns and residents; students; employees with disabilities working in sheltered workshops; insurance salespersons working on a commission basis; nonprofit camp employees; certain agricultural workers; executive, administrative, or professional employees; outside salespersons; certain casual employees; motor carriers, as fully defined above, are not covered by Indiana's minimum wage law (Sec. 22-2-2-3).
Domestics.- Indiana's minimum wage law does not apply if an employee (Sec. 22-2-2-4, as amended by H. 1027, L. 2007, effective July 1, 2007):
provides companionship services to the aged and infirm; and
is employed by an employer or agency other than the family or household using the companionship services.
WHAT THE EMPLOYER MUST DO
Every employer employing at least two employees during a workweek must, in any workweek in which the employer is subject to Indiana's minimum wage law, pay each of its employees in any workweek beginning on or after June 30, 2007, wages of not less than the minimum wage payable under the federal Fair Labor Standards Act of 1938, as amended, except as provided below (Sec. 22-2-2-4, as amended by H. 1027, L. 2007, effective July 1, 2007). Note: Effective July 24, 2008, the federal minimum wage is $6.55 per hour. Effective July 24, 2009, the federal minimum wage will be $7.25 per hour (H.R. 2206, signed into law May 25, 2007). Since Indiana law provides that the state's minimum wage must not be less than the federal minimum wage rate, effective for any workweek beginning on or after June 30, 2007, Indiana's minimum wage rate will increase in accordance with these federal changes on the dates detailed just above.
Subminimum wages.- This subsection applies only to an employee who has not attained the age of 20 years. Instead of the rates prescribed just above, an employer may pay an employee of the employer, during the first 90 consecutive calendar days after the employee is initially employed by the employer, a wage that is not less than (1) $4.25 per hour, effective March 1, 1999; and (2) the amount payable under the federal Fair Labor Standards Act of 1938, as amended, during the first 90 consecutive calendar days after initial employment to an employee who has not attained 20 years of age, effective July 1, 2007. However, no employer may take any action to displace employees (including partial displacements such as reduction in hours, wages or employment benefits) for purposes of hiring individuals at the subminimum wage (Sec. 22-2-2-4, as amended by H. 1027, L. 2007, effective July 1, 2007).
Tipped employee.- An employer may apply a “tip credit” in determining the amount of cash wage paid to tipped employees. In determining the wage an employer is required to pay a tipped employee, the amount paid the employee by the employee's employer will be an amount equal to (Sec. 22-2-2-4, as amended by H. 1027, L. 2007, effective July 1, 2007):
the cash wage paid the employee, which for purposes of the determination will be not less than the cash wage required to be paid to employees covered under the federal Fair Labor Standards Act ($2.13 an hour); and
an additional amount on account of the tips received by the employee, which amount is equal to the difference between the wage specified in item (1) just above and the current minimum wage.
An employer is responsible for supporting the amount of tip credit taken through employees' reported tips (Sec. 22-2-2-4, as amended by H. 1027, L. 2007, effective July 1, 2007).
Gary living wage.- A Gary city ordinance requires employers that receive a city project funded by industrial revenue bonds, tax abatements, urban development action grants or any future economic development incentive to pay for each class of work on the project a scale of wage that is no less than the prevailing scale of wage in Lake County. Further, any contractor or subcontractor on a project may not make a payment of wages for skilled, semi-skilled or unskilled labor that is less than the minimum provided for in the applicable nation code of fair competition or regional agreement (Municipal Code of Gary, Ordinance No. 6336, approved and effective June 22, 1997).
Bloomington living wage.- The City of Bloomington and all covered employers who are beneficiaries of assistance from the city either in the form of a service contract or subcontract or a subsidy are subject to this chapter and must pay all covered employees a living wage. For all covered employees (defined as persons who are employed in a part-time, share time, temporary, or full-time status who meet specified conditions), except tipped employees, the living wage is $11.25 per hour, for year 2009, of which up to 15 percent ($1.69 for year 2009) may be in the form of the covered employer's contribution to health insurance available to covered employees, regardless of whether the covered employee elects to receive the employer's health insurance. The living wage for covered employees who are tipped employees of a covered employer shall be the living wage for other covered employees minus 10 percent of the annual sales for the employer prorated on an hourly basis per employee. An LWO certification form must be completed, which is available from the Contract Compliance Officer ((812) 349-3429). In addition, notice must be posted at the worksite (Source: http://bloomington.in.gov/livingwage, see “Living Wage Information for Employers”).
“Covered employer” means an employer who must pay at least some of its employees a living wage and includes (1) the City of Bloomington; and (2) a beneficiary who is a for-profit entity with at least 10 employees or a not-for-profit entity with at least 15 employees. Several types of waivers exist for exemption from the city's living wage: (a) a general waiver, where application of the living wage would violate specific state or federal law because of assistance received; (b) a special waiver, where payment of a living wage is shown to (1) significantly curtail services provided by an employer, or (2) have an adverse financial impact on the city, or (3) is not in the best interest of the city; or (c) a hardship waiver, for non-profits or recipients of tax abatements, in certain situations where there would be undue harm; or (d) an emergency waiver, when an emergency is declared by the Mayor or Common Council. Application must be made in the first quarter of the year following in which the living wage rate would apply. Contact the Director of Economic Develoment at alanod@bloomington.in.gov in the Mayor's Office for more information.
The living wage shall be increased at the beginning of each calendar year by the same percentage that the Consumer Price Index for All Urban Consumers increases during the year ending the previous June 30 (Ord. 05-08, 2005, effective January 1, 2006; City of Bloomington Municipal Code, Title 2, Ch. 2.28).
NOTICE
Every employer covered by Indiana's minimum wage law, rule or order must keep a copy of them posted in a conspicuous place in the area where employees are employed. The Commissioner of Labor will furnish copies of the law, rules and orders to employers without charge (Sec. 22-2-2-8).
ENFORCEMENT
Court actions.- An employer that violates Indiana's minimum wage provisions is liable to the employee or employees affected in the amount of their unpaid minimum wages and in an equal additional amount as liquidated damages. An action to recover this liability may be maintained within three years after the cause of action arises. The court in the action will, in addition to any judgment awarded, allow recovery of a reasonable attorney's fee and costs of the action. No contract or agreement between the employee and the employer, nor any acceptance of a lesser wage by the employee, is a defense to the action (Sec. 22-2-2-9).
WHO TO CONTACT
Contact the Commissioner of Labor at 402 W. Washington St., Room W195, Indianapolis, IN 46204. Telephone: (317) 232-2378. Fax: (317) 233-3790. For information on living wages in the City of Bloomington, contact the Contract Compliance Officer at (812) 349-3429 or human.rights@bloomington.in.gov.
RECORDKEEPING
Every employer covered by Indiana's minimum wage law, rule or order issued must furnish a statement of the hours worked, wages paid, and deductions made each pay period to each employee. On demand, a sworn statement of these records must be furnished to the Commissioner of Labor (Sec. 22-2-2-8).
Open records.- The employer's minimum wage records must be open to inspection by the commissioner, his or her deputy, or an authorized agent of the department at any reasonable time (Sec. 22-2-2-8).
POSTING
Every employer covered by Indiana's minimum wage law, rule or order must keep a copy of them posted in a conspicuous place in the area where employees are employed. The Commissioner of Labor will furnish copies of the law, rules and orders to employers without charge (Sec. 22-2-2-8).
PENALTIES
Wage violations.- An employer that pays or agrees to pay any employee less than the minimum wage prescribed by law commits a Class C infraction (Sec. 22-2-2-11).
An employer that knowingly or intentionally violates Indiana's minimum wage law commits a Class A infraction (Sec. 22-2-2-11).
An employer that violates these minimum wage provisions, having a prior unrelated judgment for a violation of the provision, commits a Class B misdemeanor (Sec. 22-2-2-11).
Records violations.- An employer or its agent that fails to keep records required by the minimum wage law commits a Class C infraction (Sec. 22-2-2-11).
An employer or the employer's agent who knowingly or intentionally violates the recordkeeping and posting provisions of the minimum wage law commits a Class A infraction (Sec. 22-2-2-11).
An employer or the employer's agent that violates the recordkeeping and posting provisions of the minimum wage law, having a prior unrelated judgment for a violation of the provision, commits a Class B misdemeanor (Sec. 22-2-2-11).
Discrimination.- An employer or its agent that discharges or otherwise discriminates in regard to tenure or condition of employment against an employee because the employee has instituted or participated in the institution of any action to recover wages, or demanded the payment of minimum wages, commits a Class C infraction (Sec. 22-2-2-11).
<p>Discrimination.— An employer or its agent that discharges or otherwise discriminates in regard to tenure or condition of employment against an employee because </p>