Overtime Pay Rules in Indiana: Who Qualifies & What You Earn

The Fair Labor Standards Act (FLSA), 29 U.S.C. § 207, is the primary federal overtime law. It requires covered employers to pay employees at least 1.5 times their regular rate of pay for all hours worked over 40 in a workweek. The FLSA covers private employers engaged in interstate commerce with annual gross sales of $500,000 or more, as well as individual employees who are engaged in interstate commerce. All public sector employers (federal, state, and local governments) are also covered.

The FLSA defines several overtime exemptions under 29 U.S.C. § 213, primarily for employees in executive, professional, administrative, computer, and outside sales roles. To qualify for an exemption, employees must earn at least the federal minimum salary (currently $684 per week or $35,568 annually) and perform job duties that align with the exemption category. Employers bear the burden of proving that an employee qualifies for an exemption.

Federal remedies for overtime violations include unpaid overtime wages plus an equal amount in liquidated damages, reasonable attorney fees, and court costs. The statute of limitations for FLSA claims is generally two years for routine violations (three years for willful violations). The U.S. Department of Labor (DOL), Wage and Hour Division, enforces the FLSA and investigates employer violations. Employees may also file a private lawsuit in federal or state court without first filing with the DOL.

Indiana does not have a separate overtime statute. Instead, Indiana Code § 22-2-2-2 explicitly adopts the federal Fair Labor Standards Act (FLSA) as state law. This means the FLSA overtime standard of 1.5 times the regular rate for hours over 40 per workweek applies identically in Indiana as a matter of state law.

Because Indiana relies entirely on the FLSA, the federal exemptions (executive, professional, administrative, outside sales, computer professional, and others under 29 U.S.C. § 213) apply in Indiana without modification. The federal minimum salary threshold of $684 per week ($35,568 annually, as of 2024) also applies directly under Indiana law. Employers covered by the FLSA—generally those with $500,000+ in annual revenue or engaged in interstate commerce—must comply with these federal overtime rules in Indiana.

However, Indiana does provide a state-law remedy mechanism for wage claims. Under Indiana Code § 22-2-12, employees may file wage claims with the Indiana Department of Labor. A key advantage is that Indiana provides a three-year statute of limitations for wage claims filed with the state, compared to the two-year federal FLSA standard (or three years for willful violations under federal law). This means an Indiana employee has up to three years from the date of the violation to file a state wage claim seeking unpaid overtime. The Department of Labor can investigate, hold hearings, and order back pay and penalties. Employees retain the right to pursue federal FLSA litigation in court in addition to or instead of filing a state wage claim.

Overtime eligibility: Hours worked over 40 in a single workweek trigger overtime pay at 1.5× regular rate.

Employer coverage: Private employers with $500,000+ in annual gross revenue; all public employers (federal, state, local).

Salary threshold for certain exemptions: $684 per week ($35,568 annually, adjusted 2024) to qualify for executive, professional, or administrative exemption.

Filing deadline for Indiana wage claim: Three years from the date of the overtime violation.

Federal FLSA filing deadline: Two years for routine violations, three years for willful violations.

Overtime exemptions under the FLSA, adopted by Indiana, are narrow and construed against the employer. The primary exemptions are: (1) Executive employees who manage others, earn at least $684/week, and spend less than 20% of time on non-managerial duties; (2) Professional employees (learned or artistic) who earn at least $684/week and perform work requiring advanced knowledge; (3) Administrative employees who earn at least $684/week and perform non-manual office work directly related to management or general business operations; (4) Outside sales employees who make sales away from the employer's place of business; and (5) Computer professionals in specific roles earning at least $684/week.

The "duties test" and "salary test" both must be satisfied for most exemptions. A salaried employee earning $50,000 annually does not automatically qualify for overtime exemption—the employer must prove the employee's actual job duties meet the exemption category. Many employers misclassify employees as salaried exempt when they should be paid overtime. For example, a manager who spends more than 20% of time on non-managerial tasks (filling orders, stocking shelves) may lose exempt status and become entitled to overtime.

Other limited exemptions apply to employees in certain industries (agricultural workers, some seasonal workers, certain domestic workers, and outside professional service providers). Sales commissions and bonuses do not reduce the overtime obligation; overtime is calculated on the "regular rate" of pay, which includes commissions averaged over the relevant period. Compensatory time off ("comp time") in lieu of overtime payment is illegal in the private sector under the FLSA and Indiana law—employers must pay overtime wages in money, not time off.

Step 1: Document the Violation. Keep detailed records of all hours worked each day and week, including start and end times, breaks, and total hours. If your employer does not provide pay stubs showing hours worked, request them in writing (email is best). Save any written communications from your employer regarding your classification as exempt or overtime-ineligible. Take screenshots or photos of time clock records, scheduling systems, or work logs. Note the dates when overtime was worked and the regular hourly rate paid.

Step 2: File an Internal Complaint. Before filing externally, notify your employer in writing (email) that you believe you are owed overtime pay and request a written response explaining your overtime classification or denial. This creates a paper trail and gives the employer a chance to correct the error without litigation. Keep a copy of your email and any response. If the employer refuses to pay, proceed to Step 3. Do not assume that an internal complaint will result in retaliation—Indiana law protects employees from retaliation for wage complaints, though document everything.

Step 3: File with the Indiana Department of Labor (State Wage Claim). Visit the Indiana Department of Labor website at www.in.gov/dol/. You can file a wage claim online through their portal or mail a completed wage claim form to: Indiana Department of Labor, Wage and Hour Division, 402 W. Washington St., Indianapolis, IN 46204. Include your name, address, phone number, employer name and address, dates of employment, description of the work performed, dates overtime was worked, your regular hourly rate, and documentation of hours (time sheets, emails, pay stubs). There is no filing fee. The deadline is three years from the date the overtime was owed. After filing, the Department will investigate, request records from the employer, and may schedule a hearing.

Step 4: Understand the Investigation and Hearing Process. The Indiana Department of Labor will contact both you and your employer to request documentation. The employer must produce time records, payroll, and any written policies regarding overtime eligibility. You should provide your own records, emails, and witness statements from coworkers. A hearing officer will review the evidence and decide whether you were properly classified as exempt or overtime-ineligible. This process typically takes 3-6 months. If the Department determines you were misclassified, it will issue an order for the employer to pay back overtime wages, plus a penalty of up to 10% of unpaid wages. The employer may appeal to the Indiana Department of Labor Appeals Commission.

Step 5: Consult an Employment Attorney. If the amount owed is substantial (over $5,000), the employer contests the claim, or the investigation stalls, contact an employment attorney licensed in Indiana. An attorney can file a separate federal lawsuit under the FLSA in U.S. District Court for the Southern or Northern District of Indiana, potentially on behalf of a group of similarly situated employees ("collective action"). Federal lawsuits often recover unpaid wages plus an equal amount in liquidated damages, plus attorney fees—making the case attractive to lawyers and increasing settlement value. Most employment attorneys work on contingency (no upfront cost) for overtime cases.