Wage & Hour FAQs
Wages
Minimum Wage
Q: Is my employer required to pay minimum wage or overtime?
A: Most Indiana employers and employees are covered by the minimum wage and overtime provisions of the federal Fair Labor Standards Act (FLSA); however those not covered under federal law may still be covered by the Indiana Minimum Wage Law.
For more information on differences between Federal and Indiana State Minimum Wage, please visit http://www.in.gov/dol/files/Explanation_of_Minimum_Wage.pdf .
Q: If I am a waiter or waitress and earn tips, is my employer still required to pay me minimum wage?
A: Tipped employees must be paid at least the minimum wage. The employer is required to pay a base hourly wage of $2.13 an hour. If the employee is not compensated at a rate equal to the minimum wage after adding any tips he/she received to the base hourly wage of $2.13 an hour, the employer must pay the employee the difference. If the employee earns more than the minimum wage after adding the tips he/she received to the hourly wage of $2.13 an hour, the employer has fulfilled his/her obligation. A tipped employee means any employee engaged in an occupation in which he/she customarily and regularly receives more than $30 a month in tips.
Overtime
Q: Is my employer required to pay minimum wage or overtime?
A: Most Indiana employers and employees are covered by the minimum wage and overtime provisions of the federal Fair Labor Standards Act (FLSA); however those not covered under federal law may still be covered by the Indiana Minimum Wage Law. For more information on differences between Federal and Indiana State Minimum Wage, please visit http://www.in.gov/dol/files/Explanation_of_Minimum_Wage.pdf .
Q: What is the overtime law?
A: Both the federal Fair Labor Standards Act (FLSA) and the Indiana Minimum Wage Law generally require employers to pay employees 1½ times their regular rate of pay (“overtime compensation”) when employees work more that forty (40) hours during a work week. However, there are many exceptions to the overtime pay requirements of both federal and state law. Most of the exceptions to Indiana state law can be found at Indiana Code § 22-2-2-3 (a) – (p). Overtime claims should be made directly to the federal U.S. Department of Labor, Wage and Hour Division at the nearest regional office, or at the Indianapolis District Office. If you have specific questions, contact the U.S. Department of Labor at (317) 226-6801 or the Indiana Department of Labor at (317) 232-2655.
Underpayment/Non-payment of Wages
Q: I didn’t get paid. What can I do?
A: First, ask your employer why you haven’t received your paycheck and document any reason the employer gives for not paying you. If the employer refuses to give you your paycheck, you can file an Application for Wage Claim with the Indiana Department of Labor or consult a private attorney about your rights and how you should proceed. Employees who have been involuntarily separated from employment (laid off or fired) must file a wage claim with the Indiana Department of Labor before proceeding to file a civil lawsuit to recover wages. An employee who is still employed or separates from employment voluntarily (quits) may either file a wage claim or file a private lawsuit to seek recovery of wages. The Indiana wage claim form may be completed online at http://www.in.gov/dol/2734.htm, by visiting the Indiana Department of Labor office or by printing the form from the Indiana Department of Labor website. Please read all instructions and information provided with the form. This form must be completed in its entirety and printed forms must be returned to the address shown in the upper right corner of the form.
Q: Is there a limit to the amount of a wage claim the Department of Labor will accept?
A: Yes, the minimum amount is $30 and the maximum amount is $6,000. Indiana law establishes these limits. If you believe you are owed more than $6,000 in wages, you should consult a private attorney about your rights and how you should proceed.
Q: How long does it take to resolve a wage dispute (wage claim)?
A: Most wage disputes are resolved within 180 days. However the actual time required may vary, depending upon the parties’ cooperation and the volume of claims filed. Filing a wage claim does not guarantee payment.
Q: When is an employee’s final paycheck due?
A: Final wages must be paid on or before the next regularly scheduled payday on which the employee would have been normally paid had the employee remained employed.
Q: Can an employer change an employee’s rate of pay?
A: Unless covered by a collective bargaining agreement or other form of pay guarantee, an employer can change an employee's rate of pay as long as the reduction does not bring an employee's wage below the applicable federal or state minimum wage. The employer must notify the affected employee prior to his/her working at the reduced rate. The employee has the right to accept the lower wage rate or quit.
If you have already performed work without first being notified of the reduction, you could file a claim for wages for the difference in wages for work performed prior to the notification.
If you have further questions, e-mail the Indiana Department of Labor, Wage and Hour Division at customerservice@dol.in.gov .
Deductions
Q: Can an employer fine an employee and take it out of his or her paycheck?
A: No. An employer is not permitted under Indiana law to fine an employee and deduct the amount from his/her pay.
Q: If I am overpaid, can my employer deduct the amount of the overpayment from my paycheck?
A: Indiana law permits employers to deduct the amount of overpayment from an employee's paycheck. However, the employer must notify you in advance and there is a limit to the amount that can be deducted from each paycheck.
Q: Can my employer make deductions from my paycheck?
A: Indiana law requires three conditions to be met in order for a wage deduction to be valid:
- The agreement for the deduction must be in writing, signed by the employee, by its terms revocable at any time by the employee upon written notice, and agreed to in writing by the employer.
- A copy of the deduction agreement must be delivered to the employer within ten days of its execution.
- Only certain categories of deductions are allowed, including:
- premiums on an insurance policy;
- contributions to a charitable organization;
- purchase price of bonds, securities or stock of the employing company;
- labor union dues;
- purchase price of merchandise sold by the employer to the employee;
- amount of loan made to the employee by the employer;
- contributions of the employee to a hospital service or medical expense plan;
- and payment to an employee's direct deposit account.
Q: Can my employer deduct the cost of uniforms from my paycheck?
A: Indiana law does not allow employers to deduct the cost of mandatory uniforms from an employee's paycheck. However, it does allow employers to deduct the purchase price of merchandise sold by the employer to an employee if it is at the request of the employee. With this said, if the uniform is optional and the employee makes a written request for the deduction, the cost may be deducted from the employees wages.
Payroll Practices
Q: When is an employee’s final paycheck due?
A: Final wages must be paid on or before the next regularly scheduled payday on which the employee would have been normally paid had the employee remained employed.
Q: Can an employer change an employee’s rate of pay?
A: Unless covered by a collective bargaining agreement or other form of pay guarantee, an employer can change an employee's rate of pay as long as the reduction does not bring an employee's wage below the applicable federal or state minimum wage. The employer must notify the affected employee prior to his/her working at the reduced rate. The employee has the right to accept the lower wage rate or quit.
If you have already performed work without first being notified of the reduction, you could file a claim for wages for the difference in wages for work performed prior to the notification.
If you have further questions, e-mail the Indiana Department of Labor, Wage and Hour Division at customerservice@dol.in.gov .
Q: When I leave my employment, is my former employer required to pay me for any accrued vacation time?
A: Accrued vacation pay is considered a form of compensation. An employee may be entitled to a pro rata share of his/her accrued vacation at the time of termination. If there is a company policy or employment contract stipulating that certain conditions must be met before accrued vacation pay will be paid, these conditions must be met in order to receive accrued vacation pay. Vacation policies are generally left to the discretion of the employer.
Q: Does my employer have to pay me for mandatory meetings?
A: Generally, yes. An employer must compensate employees for time spent on the job when the employee is subject to the employer's control and direction.
Q: Is my employer required to pay me for sick days, personal days and holidays?
A: No. Indiana law only requires that employers must pay employees for actual time worked. As a result, employers are not required to pay for sick days, personal days, or holidays.
Q: How can I determine if I am an employee or an independent contractor?
A: This is an important distinction. Worker classification effects how you are paid and your rights under wage & hour laws. It also effects your eligibility for benefits and your tax responsibility. If you are unsure whether you are an employee or an independent contractor you may want to consult an attorney for advice. You may also contact the Internal Revenue Service and request Form SS-8. Complete the form and return it to the Internal Revenue Service at the address listed on the form. Based on the information provided, they will make a determination as to your status as an employee or independent contractor. You may contact the IRS at (800) 829-3676 or access their website at http://www.irs.gov/ .
Q: Can an employer require an electronic direct deposit?
A: Yes. Indiana Code § 22-2-5-1(a) states, “Every person, firm, corporation, limited liability company, or association, their trustees, lessees, or receivers appointed by any court, doing business in Indiana, shall pay each employee at least semimonthly or biweekly, if requested, the amount due the employee. The payment shall be made in lawful money of the United States, by negotiable check, draft, or money order, or by electronic transfer to the financial institution designated by the employee. Any contract in violation of this subsection is void.”
Q: Do I have to be paid for "on-call" time?
A: Generally, you are only required to be paid for time while you are under the direction and control of your employer. An employee who is required to remain "on-call" at home, or who is allowed to leave a message where he/she can be reached, is not considered to be working while "on-call." However, an employee who is required to remain "on-call" on the employer's premises is considered to be working while "on-call."
Q: May an employer provide pay statements to its employees electronically?
A: Yes. Indiana Code § 22-2-2-8 requires employers to provide employees with statements of their hours worked, wages paid, and deductions taken therefrom. However, the method of provision is not specified. Therefore, in and of itself, an electronic method would not violate Indiana’s wage and hour statutes.
Hours
Hours of work
Q: How can I determine if I am an employee or an independent contractor?
A: This is an important distinction. Worker classification effects how you are paid and your rights under wage & hour laws. It also effects your eligibility for benefits and your tax responsibility. If you are unsure whether you are an employee or an independent contractor you may want to consult an attorney for advice. You may also contact the Internal Revenue Service and request Form SS-8. Complete the form and return it to the Internal Revenue Service at the address listed on the form. Based on the information provided, they will make a determination as to your status as an employee or independent contractor. You may contact the IRS at (800) 829-3676 or access their website at http://www.irs.gov/ .
Q: How do I know if I qualify for Family Medical Leave?
A: Covered employers are required to post a notice explaining the rights and responsibilities under the federal Family Medical Leave Act (FMLA) and general written information about employee rights and obligations. For further information, contact the U.S. Department of Labor at the office nearest you or access their website at http://www.dol.gov/esa/whd/fmla/ .
- Indianapolis District Office
US Dept. of Labor
ESA Wage and Hour Division
U.S. Courthouse
46 E. Ohio Street
Room 413
Indianapolis, IN 46204
Phone: (317) 226-6801
1-866-4-USWAGE (1-866-487-9243)
Q: Is my employer required to pay me for sick days, personal days and holidays?
A: No. Indiana law only requires that employers must pay employees for actual time worked. As a result, employers are not required to pay for sick days, personal days, or holidays.
Mandatory overtime
Discipline/Suspension/Termination
Q: Can my employer terminate me for no reason?
A: Generally, yes. In the absence of a collective bargaining agreement or contract providing otherwise, Indiana employers may hire, fire, promote, demote, layoff, suspend, set their own work hours and policies at their discretion. Employers may not discriminate against their employees because of their age, sex, race, religion, national origin, or disability.
Q: Can I be fired even if I have a doctor's note?
A: Generally, yes. Indiana employers may hire, fire, promote, demote, layoff, suspend, set their own work hours and policies at their discretion. The federal Family and Medical Leave Act, however, offers some protection for employees taking time off for illness. If you have questions concerning Family and Medical Leave and whether it applies, please contact the U.S. Department of Labor, Wage and Hour Division in Indianapolis at (317) 226-6801.
Q: Can I do anything about untrue statements that my former employer has made about me to a potential employer?
A: Indiana has a Blacklisting law which permits employers to disclose only truthful facts about an employee's termination. If you believe your former employer has made untrue statements about you, you must request copies of any written correspondence from a former employer to a potential employer within 30 days of applying for a job with the potential employer. You may wish to consult a private attorney about any remedies for violation of the Blacklisting law.
Breaks/Lunches
Q: Are employers required to provide breaks to employees?
A: Indiana state law does not generally require employers to provide rest breaks, meal breaks, or breaks for other purposes to adult employees. Minor employees (under 18 years of age) who work six or more hours in a shift must be given one or two breaks totaling at least 30 minutes. These breaks may be taken at any point during the minor's shift. Indiana Administrative Code 610 IAC 10-3-1 requires break logs to be maintained by the employer to document all breaks provided to minor employees.
Certain other categories of workers, such as airline pilots, truck drivers, and workers covered by a union collective bargaining agreement may be entitled to mandatory breaks under other applicable regulations or by contract. Check with the appropriate regulatory agency or with your union representative.
Vacation
Q: Can my employer mandate when I use my vacation time?
A: Yes. Vacation time is considered a fringe benefit and is up to the discretion of the employer.
Q: Is my employer required to pay me for sick days, personal days and holidays?
A: No. Indiana law only requires that employers must pay employees for actual time worked. As a result, employers are not required to pay for sick days, personal days, or holidays.
Common Construction Wage
Q: Where are the Frequently Asked Questions for Common Construction Wage?
A: Due to recent changes in the Common Construction Wage Act, the Frequently Asked Questions are currently being revised. For information about changes in the Act and the role of the Indiana Department of Labor in the process, please visit http://www.in.gov/dol/2723.htm . If you have specific questions, please call (317) 232-2655 or e-mail ccw@dol.in.gov .
Scheduling a Hearing
Q: Where are the Frequently Asked Questions for Common Construction Wage?
A: Due to recent changes in the Common Construction Wage Act, the Frequently Asked Questions are currently being revised. For information about changes in the Act and the role of the Indiana Department of Labor in the process, please visit http://www.in.gov/dol/2723.htm . If you have specific questions, please call (317) 232-2655 or e-mail ccw@dol.in.gov .
Hearing Procedures
Q: Where are the Frequently Asked Questions for Common Construction Wage?
A: Due to recent changes in the Common Construction Wage Act, the Frequently Asked Questions are currently being revised. For information about changes in the Act and the role of the Indiana Department of Labor in the process, please visit http://www.in.gov/dol/2723.htm . If you have specific questions, please call (317) 232-2655 or e-mail ccw@dol.in.gov .
Application of the Law
Q: Where are the Frequently Asked Questions for Common Construction Wage?
A: Due to recent changes in the Common Construction Wage Act, the Frequently Asked Questions are currently being revised. For information about changes in the Act and the role of the Indiana Department of Labor in the process, please visit http://www.in.gov/dol/2723.htm . If you have specific questions, please call (317) 232-2655 or e-mail ccw@dol.in.gov .
Enforcement
Q: Where are the Frequently Asked Questions for Common Construction Wage?
A: Due to recent changes in the Common Construction Wage Act, the Frequently Asked Questions are currently being revised. For information about changes in the Act and the role of the Indiana Department of Labor in the process, please visit http://www.in.gov/dol/2723.htm . If you have specific questions, please call (317) 232-2655 or e-mail ccw@dol.in.gov .
Other Helpful Links
Unemployment
Q: Who do I contact with questions about unemployment compensation or unemployment insurance?
A: The Department of Workforce Development (DWD) is the regulatory agency that deals with unemployment and unemployment related issues. For all unemployment questions, please contact the DWD by phone at (800) 891-6499 or visit their website at www.in.gov/dwd .
Workers Compensation
Q: Who do I contact with questions about Workers Compensation issues?
A: The Worker's Compensation Board is the regulatory agency that deals with all issues related to Worker's Compensation. For all questions related to Worker's Compensation, please contact the Workers Compensation Board by phone at (800) 824-COMP or visit their website at http://www.in.gov/wcb/ .
Federal Overtime/Minimum Wage Issues
Q: Who do I contact with questions about federal minimum wage or overtime issues?
A: Questions concerning federal Minimum Wage and Overtime should be directed to the United States Department of Labor. They may be contacted by phone at (317) 226-6801.
- File a complaint with IOSHA.
- Report an accident or fatality to IOSHA.
- Obtain a safety poster.
- Issue an Online Work Permit.
- Schedule a Common Construction Wage Hearing.
- Request training by the Child Labor Bureau at my place of business.
- Order a minimum wage poster.
- Order a child labor poster.
- Some statistics on fatalities, injuries or illnesses here in Indiana or nationwide.
- Learn a company's citation history.
- Learn more about the Voluntary Protection Program (VPP)
- Find out about signing up for a mine certification examination.
- Schedule an INSafe consultation.
- Contact INSafe Customer Service
- Speak to an occupational safety or health expert.
- Review current work related injury/illness statistics.
- Get updated OSHA Recordkeeping Forms.
- Calculate injury/illness rates and compare with other industries.
