Indiana employees navigating the complexities of hourly wages are primarily impacted (legally-speaking) by two considerations. They need to understand the state’s minimum wage rate and the overtime requirements.
Employers in Indiana must comply with applicable minimum wage and overtime rates to ensure employees receive what they’re due. Both sides must completely understand what’s required.
Minimum wage pay
The federal minimum wage is the benchmark for hourly employees in Indiana. It’s currently established at $7.25 per hour and hasn’t been increased at all since July 24, 2009. This rate applies to most workers, with specific exceptions outlined by federal and state laws.
There is an exception for tipped workers. These individuals make $2.13 per hour plus tips. If the employee’s tips plus base pay don’t make at least minimum wage, the employer has to make up the difference so the employee makes the equivalent of minimum wage.
Another exception to the law is that people who are under 20 years old can be paid a training wage for the first 90 days they work for an employer. These are 90 consecutive calendar days, not only work days. For that period, they must make at least $4.25 per hour.
Overtime pay requirements
Overtime pay applies to many hourly workers who work more than 40 hours in a work week. The rate of pay is 1.5 times the person’s normal hourly rate for every hour after 40.
There are certain individuals who are exempt from overtime pay. These include:
- Executives and administrators
- Minors under 16 years old
- People who work for commission
- People working for a parent, spouse or child
- Licensed, ordained or commissioned religious professionals
- Certain student nurses
- Student workers working for their school
- Certain farm workers
- Specific people in the insurance industry
- Disabled individuals working for certain nonprofit organizations
Other employees may also be exempt from overtime pay, so it’s critical to find out if a specific position qualifies for it.
Employees who haven’t received their due pay can potentially take legal action to get their pay. Seeking legal assistance can help workers to prepare a case and get the process moving forward.