Indiana Labor Laws: Compliance Guide 2025

If you’re an Indiana employer, knowing the state’s labor laws is essential to keeping your business on the right path. Simply put, they govern how your employees work, ensuring fairness and safety in the workplace. However, with Indiana labor law having so many rules and regulations, it can make business owners feel like they’re decoding a complex puzzle. Thankfully, Mosey is here to guide you through that puzzle.

Key Takeaways

Indiana labor laws cover a wide range of employment issues, including wages, hours, and safety issues
Employers need to comply with both state and federal regulations to avoid legal issues
There were several key changes to Indiana labor laws in 2025, particularly regarding child labor

Understanding Indiana Labor Laws

Indiana labor laws address everything from wages and hours to child labor and safety regulations. Understanding these laws not only helps in ensuring compliance but also empowers employees to advocate for their rights. At their core, these laws dictate how businesses operate within state borders. Employers must align with both state and federal labor regulations, ensuring they meet the required standards.

HR professionals play a vital role in keeping organizations up-to-date on any changes to these laws. In doing so, they help guarantee compliance for employers while fostering a positive work environment for employees. Therefore, staying informed isn’t just a best practice for companies; it’s an operational necessity that plays a massive role in determining if a business sinks or swims.

Changes to Indiana Employment Laws in 2025

Staying informed in 2025 means understanding several key changes to Indiana labor laws, most involving child labor.

Child Labor Laws for 16- and 17-year-olds:

As of January 1, 2025, all restrictions on the number of hours and times that 16- and 17-year-olds can work have been removed. They can now work the same shifts as adults without parental permission or adult supervision.
This change allows these minors to work the same hours and days as adults, largely but not entirely mirroring federal child labor laws.

Child Labor Laws for 14- and 15-year-olds:

While restrictions for younger teens remain, they can now work until 9 p.m. from June 1 through Labor Day. Outside of summer months, they cannot work before 7 a.m. or after 7 p.m.
They are still limited to three hours of work on school days and up to 18 hours per week during the school year.

Agricultural Employment:

Prohibitions against 16- to 18-year-old farm workers handling hazardous materials have been repealed. Indiana law now defers to the Fair Labor Standards Act (FLSA) for specific prohibitions.

Employer Requirements:

Employers must register minors in the Youth Employment System (YES) if they employ five or more minors.
Employers are no longer fined for minor time violations of 10 minutes or less, though federal inspectors may impose stricter penalties.

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Indiana Child Labor Laws

Obviously, Indiana’s laws governing child labor are designed with protection in mind and are always changing, 2025 being no exception. Together, these laws ensure minors can work in a safe environment that doesn’t compromise their education or well-being. Thus, in addition to the changes discussed above, employers must understand the following regulations to avoid potential legal pitfalls.

Restrictions and Regulations for Minors in the Workplace

Exemptions: Minors employed by their parents, legal guardians, or in family-owned businesses are exempt from certain child labor laws. Additionally, minors involved in work-based learning courses, acting, newspaper delivery, or making evergreen wreaths are also exempt.
Hazardous Occupations: Minors are prohibited from working in hazardous occupations as defined by federal law. This includes jobs involving dangerous machinery or toxic substances. As previously stated, Indiana defers to the Fair Labor Standards Act (FLSA) for specific prohibitions.
Break Requirements: Minors under 18 must receive breaks totaling 30 minutes when working six or more consecutive hours.

Work Permits and Age Restrictions for Minors in Indiana

Age Restrictions:
- Under 14: Generally, minors under 14 cannot be employed in gainful occupations except as farm laborers, domestic service workers, caddies, or newspaper carriers.
- Under 16: Cannot work during school hours on school days.
Work Permits: Indiana has eliminated traditional work permits for minors. Once again, employers with five or more minor employees must register these employees through the Indiana Department of Labor’s Youth Employment System (YES)
Employer Responsibilities: Employers must post the maximum number of hours minors can work each day in a conspicuous place. They must also comply with all other federal and state laws to ensure a safe and compliant work environment for minors. To reiterate, employers are responsible for ensuring minors are not working in prohibited occupations or exceeding allowed work hours.

Indiana Wage and Hour Laws

Indiana wage and hour laws are important for employers and employees in Indiana. These laws ensure workers receive fair compensation for their time and effort, while providing guidelines for employers to follow.

Indiana Minimum Wage Requirements

The minimum wage floor is crucial for maintaining a baseline standard of living. As of 2025, the Indiana minimum wage remains at $7.25 per hour, aligning with the federal minimum wage. For employees who earn tips, the wage calculations can differ. Tipped employees must receive a minimum of $2.13 per hour, with tips making up the difference to reach the $7.25 hourly wage.

Employee Overtime Pay Regulations in Indiana

Employees who work over 40 hours in a week are entitled to overtime pay, calculated at 1.5 times their regular rate. This rule ensures employees are adequately compensated for their extra efforts. To comply with these regulations, employers must accurately categorize their employees as exempt or non-exempt. Starting January 1, 2025, the salary threshold for overtime increased to $58,656 annually, potentially affecting more salaried employees.

Accurate record-keeping is crucial in this area. Employers should maintain detailed records of hours worked to avoid disputes and ensure timely payment. In the bigger picture, following overtime rules means employers meet legal obligations and demonstrate a commitment to fair labor practices. Put differently, following Indiana employment laws enhances employee satisfaction and trust, driving more success for the organization.

Payroll and Record-Keeping Requirements in Indiana

Employers must maintain detailed payroll records in general, not just overtime. This includes hours worked, wages paid, and deductions made, retaining these payroll records for at least three years along with employment contracts and I-9 forms for specified periods. Indiana law also mandates that employers provide itemized wage statements to employees.

Additionally, employers should be aware of regulations regarding deductions from pay, making sure they’re authorized and don’t reduce wages below the minimum wage. Employers must also provide final paychecks to terminated employees by the next regular payday, ensuring timely payment of wages owed. While Indiana does not mandate meal breaks, employers should consider providing them to enhance employee well-being and productivity.

Indiana Leave Requirements

Understanding employee leave requirements helps businesses manage absences effectively while ensuring employees can take necessary time off.

Family and Medical Leave Act (FMLA) in Indiana

The Family and Medical Leave Act (FMLA) allows eligible employees to take unpaid leave for specific family or medical reasons. Employees must have worked for at least 12 months to be eligible, but not necessarily consecutively. They also need at least 1,250 hours of service in the 12 months preceding the start of leave. This act offers job protection, ensuring employees can return to their positions after their leave period.

This is yet another area where HR professionals are crucial in educating employees about their rights under the FMLA. By fostering an understanding of these provisions, businesses can support employees during critical times without disrupting operations. This balance is key to maintaining a harmonious workplace that values both productivity and employee well-being.

Paid Time Off (PTO) Policies in Indiana

While Indiana doesn’t mandate Paid Time Off (PTO), many employers choose to offer it as a valuable benefit. Clearly defined PTO policies in employee handbooks help set expectations and maintain fairness in the workplace. Consistent application of these policies contributes to a positive work culture. To make life easier, you can automate handbook updates with Mosey. Apply timely, lawyer-written policies to your handbook in a few clicks to take any guesswork out of the process of keeping your handbook always up-to-date.

Sick Leave and Vacation Policies in Indiana

In Indiana, there’s no state-mandated sick leave law, leaving it up to employers to implement their own policies. Transparent documentation of these policies ensures employees are aware of their rights to use accrued sick leave and vacation time. Employers benefit from clear policies that support employee well-being and foster a trusting work environment.

Similarly, vacation policies can vary significantly between employers, emphasizing the need for clear documentation and communication. By understanding their rights and responsibilities, employees can plan their time off effectively, while employers can manage absences without disrupting business operations.

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Safety Regulations for Employers in Indiana

Safety regulations in Indiana create a secure work environment and reduce the risk of accidents.

Occupational Safety and Health Administration (OSHA) Standards in Indiana

Compliance with Indiana Occupational Safety and Health Administration (IOSHA) and OSHA standards is non-negotiable for employers in Indiana. These guidelines provide a framework for maintaining a safe and healthy work environment, safeguarding employees from potential hazards. Regular safety inspections help identify and mitigate risks, preventing accidents before they occur. Employers must also keep accurate workplace injury and illness records using OSHA’s Form 300.

Workplace Safety Training and Compliance in Indiana

Further, regular safety training is essential for preventing workplace injuries and ensuring compliance with safety regulations. Employers should tailor training programs to the specific needs of their workplace, addressing potential hazards and promoting a culture of safety awareness. Encouraging employee participation in safety committees or programs can further enhance safety culture by providing a platform for feedback and suggestions.

Ongoing education and awareness are crucial for maintaining compliance with safety regulations. Employees should feel empowered to report unsafe conditions to management, knowing their concerns will be addressed. This proactive approach to safety fosters a secure work environment where employees can thrive.

Reporting Workplace Accidents and Injuries in Indiana

Prompt reporting of workplace accidents and injuries ensures employees receive necessary medical attention and benefits. Employers must document these incidents accurately, as this information helps prevent future occurrences and resolve disputes. Employees should be aware of their rights to report workplace injuries without fear of retaliation.

Hiring Practices and Laws in Indiana

Indiana also has several regulations in place to promote fairness and equality in hiring practices.

Equal Employment Opportunity (EEO) Laws in Indiana

EEO laws in Indiana prohibit discrimination in hiring, protecting job applicants from biases based on race, gender, and other characteristics. To comply with these regulations, employers must implement fair hiring practices, ensuring a diverse and inclusive workplace. Indiana also provides protections against discrimination based on sexual orientation and gender identity in specific contexts.

HR professionals play a key role in fostering a culture of respect and equality. Businesses that follow EEO laws enhance their reputation and attract a wider pool of talent. The result—companies can create a far more dynamic and innovative work environment.

Background Check Regulations in Indiana

Conducting background checks is a common practice for employers, but it must occur in compliance with state and federal regulations. Background checks should be relevant to the job and conducted fairly for all candidates, with consent obtained beforehand. Employers should also ensure they comply with the Fair Credit Reporting Act (FCRA) when using consumer reports for employment purposes.

Non-Discrimination Laws in Indiana

Likewise, Indiana’s non-discrimination laws protect employees from workplace biases to create a fair and equitable work environment. To comply with these laws, employers must foster a culture of respect and equality, implementing policies that address and prevent discrimination. Additionally, employers must comply with the Americans with Disabilities Act (ADA) by providing reasonable accommodations for applicants and employees with disabilities.

Legal professionals can provide guidance on implementing non-discrimination policies, helping businesses create a positive workplace culture. Employers should also maintain transparency throughout the hiring process, ensuring all candidates are treated fairly and consistently.

Employer Responsibilities for Compliance in Indiana

Employers in Indiana must stay informed about labor laws to avoid penalties and ensure a compliant workplace, an area where Mosey can be especially helpful with compliance monitoring. In addition, regular audits and reviews help identify areas for improvement, while training programs educate managers and employees about compliance requirements. This includes understanding and adhering to IOSHA standards to maintain a safe work environment, as well as complying with child labor laws and wage regulations.

Consequences of Non-Compliance with Indiana Labor Laws

Non-compliance with labor laws can lead to fines, penalties, and legal action, posing significant risks to businesses. Employers may face civil penalties for safety violations, with fines of up to $7,000 per serious violation and higher penalties for repeated or severe infractions. Violating child labor laws can result in additional penalties, such as fines for minor time violations.

Remember, employers may also damage their reputation and lose employee trust, affecting morale and productivity. Once again, legal professionals can help businesses navigate compliance challenges, offering guidance on best practices and potential pitfalls.

Resources for Employers to Ensure Compliance with Indiana Labor Laws

Employers in Indiana have access to various resources for guidance on labor law compliance. Legal counsel, HR services, and government websites provide valuable information and support for navigating compliance issues. Professional organizations offer training and support, helping businesses stay informed and engaged with industry developments. By leveraging these resources, employers can maintain compliance and foster a positive work environment supporting business success and employee satisfaction.

Mosey: Compliance Made Easy

It’s an understatement to say Indiana’s employment and labor laws have many moving parts. From minimum wage and occupational safety rules to overtime and EEO, Indiana employers are perpetually walking a legal gauntlet. Couple that with the demands of running an actual business, and it’s almost too much for an employer to handle. That is, if that employer doesn’t use Mosey.

Mosey is Indiana employers’ secret weapon against compliance complexities. In fact, Mosey makes multi-state compliance a breeze, automating once tedious manual tasks like updating handbooks, tracking legislative changes, and even providing the right set of required notices and posters. Book a Mosey demo today and see how you can turn compliance into an actual advantage.

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