Gig Worker Rights in Indiana: Employee vs Independent Contractor

Federal law does not provide a specific gig worker protection statute, but the Fair Labor Standards Act (FLSA), 29 U.S.C. § 201 et seq., applies to all workers unless properly classified as independent contractors. The FLSA requires that covered employees receive at least the federal minimum wage ($7.25/hour) and overtime pay at time-and-a-half for hours over 40 per week. Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e, and the Americans with Disabilities Act, 42 U.S.C. § 12101 et seq., prohibit discrimination on the basis of protected characteristics. Misclassification of employees as independent contractors violates the FLSA and state employment law.

The Equal Employment Opportunity Commission (EEOC) enforces federal anti-discrimination statutes. The Department of Labor (DOL) Wage and Hour Division enforces FLSA wage and hour requirements. However, workers properly classified as independent contractors are not covered by the FLSA, meaning they do not receive minimum wage guarantees, overtime protections, or most federal employment law benefits. Federal law does recognize workers' compensation requirements in some states, but Indiana does not require independent contractors to be covered.

Federal law does not address platform accountability, benefits eligibility, scheduling flexibility, or other gig-specific issues that have become focal points of state and local regulation. The ABC test, derived from California's Assembly Bill 5 and the Restatement (Second) of Agency, has become the legal standard in many jurisdictions for determining worker status, but application varies by state and jurisdiction.

Indiana Code § 22-5-1-1 et seq. establishes the framework for determining whether a worker is an employee or independent contractor. Under Indiana law, a worker is presumed to be an employee unless the hiring entity demonstrates that the worker satisfies all three prongs of the ABC test: (A) the worker is free from control and direction in performing the work, (B) the worker performs work outside the usual course of the hiring entity's business, and (C) the worker is customarily engaged in an independently established occupation or business. This presumption significantly differs from federal law, which uses the economic reality test, giving Indiana workers stronger presumptions of employment status.

Under Indiana Code § 22-4-19-1, misclassification of employees as independent contractors is prohibited. Employers who intentionally misclassify employees face civil penalties and potential liability for unpaid wages, taxes, and benefits. However, Indiana has not enacted comprehensive gig worker protections similar to those in California, New York, or other states. Gig workers classified as independent contractors in Indiana do not receive the protections of minimum wage laws (Indiana Code § 22-2-1-1 et seq.), overtime requirements, paid leave, or unemployment insurance eligibility.

Indiana Code § 22-3-1-2 states that independent contractors are not required to be covered by workers' compensation insurance. This creates significant risk for gig workers who are injured while performing work. The state does not mandate that platforms provide health insurance, paid sick leave, or other benefits to independent contractors. Unlike California's Proposition 22, which created limited benefits for certain app-based drivers, Indiana has not enacted comparable legislation. Gig workers in Indiana have limited recourse unless they can successfully challenge their classification as independent contractors or demonstrate that the hiring entity violated the ABC test.

Indiana law provides several important exceptions and limitations on gig worker protections. First, if a worker is properly classified as an independent contractor under the ABC test, virtually all employment protections do not apply, including minimum wage, overtime, paid leave, workers' compensation, unemployment insurance, and anti-discrimination laws in certain contexts.

Second, Indiana recognizes narrow exceptions to employee status for certain occupations. Real estate agents and insurance agents may be classified as independent contractors if they meet specific statutory criteria, even if they might otherwise satisfy the ABC test. These occupations are carved out by Indiana Code § 22-5-1-1.

Third, joint employment doctrine creates ambiguity in the gig economy. If a platform is deemed a joint employer with another entity, liability and coverage obligations may shift, but Indiana courts have not definitively ruled on when platforms become joint employers of gig workers. Fourth, the ABC test presumes independent contractor status is unlawful unless all three prongs are met, but employers can rebut this by showing the worker was not actually classified as an employee at hire. Fifth, Indiana does not recognize a categorical right to flexible scheduling or algorithmic transparency for gig workers, even when classified as employees.

Sixth, gig workers may still face limitations in proving discrimination, harassment, or retaliation claims if platforms argue they are not sufficiently integrated into the business. Seventh, workers who enter into agreements that contain broad independent contractor language may face difficulty challenging their classification in arbitration or settlement agreements, even if misclassification occurred. Finally, the state provides no statutory right to data access, appeal procedures for deactivation, or notice requirements for algorithm changes affecting gig workers.

Step 1: Document Everything. Keep detailed records of all work performed, including dates, times, duration, tasks completed, communications with the platform, terms of service, payment records, and any evidence of control exercised by the hiring entity. Save screenshots of the app interface, worker agreement, performance metrics, messages from the platform indicating control (e.g., 'must complete shifts,' 'attendance requirements'), and any evidence that you perform work within the platform's usual business scope. Take photos of equipment, supplies, or training provided by the platform. Maintain a contemporaneous log showing hours worked and compensation received. This documentation is critical to establishing that you should have been classified as an employee.

Step 2: Attempt Internal Resolution. Contact the platform's support team or worker relations department in writing (email is best for documentation purposes) to raise concerns about your classification status or alleged employment violations. Clearly state the specific violation: misclassification, unpaid wages, wage deductions, or other issues. Request a written response within 14 days. Document all communications. For many platforms, this initiates a paper trail that strengthens a later claim. However, be aware that most gig platforms' terms of service require disputes to proceed to arbitration, which may limit your options for legal action.

Step 3: File with the Appropriate Agency. For wage and hour violations (unpaid minimum wage, improper deductions), file a complaint with the Indiana Department of Labor, Wage and Hour Division, at www.in.gov/dol or call 317-232-2655. You must file within the applicable statute of limitations (generally two years for unpaid wages, three years if the violation was willful). Provide your worker ID, dates of work, payment records, classification documents, and a detailed description of the violation. The DOL can investigate wage theft and misclassification. Alternatively, for discrimination or retaliation based on protected status, file with the Indiana Civil Rights Commission (ICRC) at www.in.gov/icrc or call 317-232-2600. ICRC charges must be filed within 180 days of the alleged violation. Provide evidence of the discriminatory conduct and its timing relative to your complaints.

Step 4: Expect the Investigation Process. After filing with the DOL or ICRC, the agency will assign an investigator who will contact the platform and you to gather evidence. The investigation typically takes 30-90 days, though complex cases may extend longer. The investigator will review your work records, communications, platform policies, and classification criteria. The platform will have an opportunity to respond and provide their version of events. You may be asked for additional documentation or to provide a witness statement. The investigator will determine whether misclassification or wage violations occurred. If violations are found, the agency may issue a citation, demand back wages plus penalties, or refer the case for enforcement action.

Step 5: Consult an Employment Attorney. Before signing any settlement agreement, attempting to challenge your classification in court, or if the platform retaliates against you for filing complaints, consult a licensed Indiana employment attorney. An attorney can review your classification status under the ABC test, identify violations the agency may have missed, and represent you in civil court or arbitration if necessary. Many employment attorneys work on contingency (no upfront cost) for misclassification and wage theft cases. If the agency's investigation did not result in adequate relief, a private lawsuit may recover additional damages, including liquidated damages equal to unpaid wages, attorney's fees, and costs. Retaliation claims (e.g., deactivation after filing a complaint) may also warrant legal action under Indiana Code § 22-5-2-11.