Indiana Minimum Wage: Current Rate & Scheduled Increases

The Fair Labor Standards Act (FLSA), 29 U.S.C. section 201 et seq., establishes the federal minimum wage at $7.25 per hour. This applies to most employers engaged in interstate commerce or with gross annual revenues of at least $500,000. The FLSA covers virtually all private sector employers, including small businesses, with limited exceptions for certain agricultural operations, family businesses, and specific industries.

The law prohibits employers from paying covered employees less than the federal minimum wage for all hours worked. The U.S. Department of Labor (DOL) enforces the FLSA and investigates violations. Covered employees include hourly workers, salaried employees paid below minimum wage thresholds, and tipped employees who must receive at least $7.25 per hour before tips are credited.

Remedies for FLSA violations include back pay for all unpaid wages, an equal amount in liquidated damages, and in some cases, penalties. Employees can file complaints with the DOL Wage and Hour Division or pursue civil litigation. The statute of limitations is two years for unpaid wages (three years if the violation is willful), measured from the date of the violation.

Indiana has not enacted a state minimum wage law that exceeds the federal minimum wage. Therefore, Indiana employers are governed entirely by the Fair Labor Standards Act and the federal minimum wage of $7.25 per hour. Indiana Code does not provide a separate or higher minimum wage requirement, meaning the federal floor is the effective wage floor in the state.

This means Indiana employers face no additional state-level minimum wage obligations beyond federal law. Any employer subject to the FLSA must comply with the $7.25 federal minimum; Indiana imposes no stricter requirement. Conversely, Indiana provides no additional protections or categories of workers beyond what federal law covers.

Inclusion of tipped employees under the state law follows the federal FLSA model: employers may credit tips toward the minimum wage only if the employee receives enough tips to reach $7.25 per hour, and the employer must make up any shortfall. Indiana does not modify the tip credit rules or create a separate state tipped minimum wage.

Because Indiana relies on federal law, the state provides no enhanced remedies or recovery mechanisms beyond those available under the FLSA. Workers must file complaints with the federal DOL Wage and Hour Division or pursue private litigation under federal law. Indiana employers are not subject to separate state wage enforcement or state-specific penalties.

The FLSA contains several exceptions to minimum wage coverage that apply in Indiana. Certain agricultural workers, domestic employees, and employees of family-owned businesses may fall outside the scope of the law. Casual babysitters and companions for elderly or infirm individuals are often exempt. Employees of nonprofit organizations organized and operated exclusively for charitable, educational, religious, or scientific purposes may have limited coverage, depending on the nature of work.

Intern and trainee positions may be exempt if specific Department of Labor criteria are met: the internship must be similar to academic classroom instruction, primarily for the intern's benefit, not displace regular employees, not provide immediate advantage to the employer, and the intern must not be entitled to a job at the end. However, many unpaid internships violate the FLSA even if labeled as such, particularly in for-profit settings.

Executive, administrative, and professional employees earning above certain salary thresholds may be classified as exempt salaried employees not entitled to hourly minimum wage. However, misclassification is common and creates liability. Commissioned salespeople in retail or service establishments may have different wage treatment if paid primarily on commission.

At-will employment is the default rule in Indiana; employees can be terminated for any lawful reason or no reason. However, minimum wage protections cannot be waived by at-will status—employers cannot pay below minimum wage even for at-will employees. Collective bargaining agreements do not override the federal minimum wage floor. Indiana courts recognize very narrow exceptions for gross negligence or willful misconduct in wage disputes, but these do not excuse minimum wage violations.

**Step 1: Document All Wage Records.** Keep detailed records of all hours worked, dates, wage rates, and amounts paid. Screenshot or photograph paystubs, timecards, email communications about pay, and any written agreements about compensation. Save bank statements showing deposits. If you were not given a paystub, document the dates and amounts you recall being paid and note that no pay stub was provided. Document the job title, duties performed, and whether you were classified as hourly, salaried, or tipped. Create a timeline showing when wage violations occurred and how much money is owed.

**Step 2: File an Internal Complaint if Possible.** If your employer has an HR department or formal complaint process, submit a written complaint requesting that your wages be corrected immediately. Use email so you have a record. State clearly that you are owed back pay due to being paid below minimum wage. Note the specific dates, hours, and shortfalls. Keep a copy for your records. This step creates internal documentation and may prompt corrective action, though it is not required before filing with an agency.

**Step 3: File a Complaint with the U.S. Department of Labor.** Contact the DOL Wage and Hour Division, which investigates FLSA violations in Indiana. Visit www.dol.gov/agencies/whd or call the nearest field office. You can also file online at www.dol.gov/agencies/whd/contact. Provide your name, employer name, address, job title, dates of employment, wage rates paid, hours worked, and how much you believe you are owed. Include a summary of the violation and copies of documentation. There is no filing fee and no statute of limitations imposed by the agency for filing (though litigation has a 2- or 3-year window). The investigation typically takes 2-6 months.

**Step 4: Understand the Investigation Process.** The DOL will contact your employer and request wage and hour records. The agency investigates whether your employer violated the FLSA by underpaying you. Investigators may interview you and your employer. The process is confidential, though some protection against retaliation is available. If the DOL finds a violation, it will attempt to reach a settlement requiring your employer to pay back wages and penalties. The investigation does not result in a judgment; instead, the agency mediates resolution.

**Step 5: Consider Private Litigation or Consult an Attorney.** If the DOL investigation does not resolve the claim or you prefer faster action, you can file a private lawsuit under the FLSA in federal district court. You do not need to exhaust the DOL complaint process first. Many wage and hour attorneys work on contingency (no upfront cost). An attorney experienced in FLSA cases can demand back pay, liquidated damages (equal to back pay), and attorney fees and costs. Class action suits may be possible if multiple employees were underpaid. Consult an employment attorney in Indiana who has experience with wage disputes.