Compliance Watch:
What are my overtime rights in Indiana?

July 18th 2024

Overtime laws are designed to protect employees from exploitation and to ensure ethical working environments. In Indiana, overtime is governed by both state and federal laws, which generally coincide. Understanding your rights is essential to ensure you are compensated appropriately for any additional hours worked. This article explores overtime rights in Indiana, detailing the rules and typical practices concerning overtime by answering commonly asked questions.

This Article Covers

Understanding Overtime in Indiana
Common Questions About Overtime in Indiana
Legal Working Hours in Indiana 
Overtime Eligibility in Indiana
    Overtime Payment Calculations in Indiana
      Receiving Overtime Payment in Indiana 
      Violations of Overtime Law in Indiana

      Understanding Overtime in Indiana

      Is overtime pay mandatory in Indiana?

      Yes, overtime pay is mandatory in India, according to the Indiana Minimum Wage law and the federal Fair Labor Standards Act (FLSA). These laws state that employees must receive payment of 1.5 times their regular hourly rate for hours worked beyond 40 in a week. Only employers with more than 40 employees must pay the overtime rate. 

      Not all employees are covered by the state’s overtime provisions. Those in executive, administrative, or professional roles are exempt if they meet certain salary criteria. 

      More information on exemptions and exceptions from overtime can be found in this Indiana Overtime Laws article.

      When do I qualify for overtime pay in Indiana?

      In Indiana, the workweek for most state employees starts at midnight on Sunday and ends 168 hours later on the following Saturday. Employees qualify for overtime pay after they surpass 40 hours of work during this period. 

      There is no daily overtime limit in Indiana, meaning there’s no additional overtime compensation for working more than 8 hours in a single day, as seen in some other states. It’s also key to remember that certain employees are exempt from overtime—typically those in executive, administrative, or professional roles who meet certain salary criteria. 

      How much is overtime pay in Indiana?

      Overtime pay is calculated at one and a half times an employee’s regular hourly rate. For example, if an employee earns a regular rate of $23 per hour, they should be paid an overtime rate of $34.50 per hour. 

      Since the state minimum wage in Indiana is $7.25 per hour, overtime in the state is $10.88 per hour. However, there are exceptions to these minimum wage rates for certain groups, such as seasonal or agricultural workers, minors, and tipped employees.

      Which laws govern overtime in Indiana?

      Overtime in Indiana is governed by the following state and federal laws:

      • The Fair Labor Standards Act (FLSA): This federal law sets the standard for overtime pay across the United States, requiring that non-exempt employees be paid at least one and a half times their regular rate for hours worked over 40 in a workweek.
      • The Indiana Minimum Wage Law: This state-specific legislation exempts employers with under 40 employees from having to pay overtime. 

      Common Questions About Overtime in Indiana

      Do employers have to pay overtime in Indiana?

      Yes, employers in Indiana must pay overtime for every hour worked over 40 in a week, as soon as they employ a minimum of 40 workers. This is a legal requirement for non-exempt workers in the state. Only certain types of employees, such as those in executive, administrative, or professional roles who meet specific criteria related to their job duties and salary, are exempt from overtime requirements outlined by the federal Fair Labor Standards Act (FLSA) and the Indiana Minimum Wage Law.

      Can an employee refuse to work overtime in Indiana?

      In Indiana, there are no state or federal laws limiting the number of hours an employee can be required to work each day or week. As a result, employees are generally expected to adhere to employer demands for overtime work. Declining to work additional hours may result in disciplinary measures, including possible termination. However, there are exceptions to this rule. Employees are not obligated to work overtime if it conflicts with their employment contract or collective bargaining agreement. Moreover, specific sectors such as transportation may have stringent regulations concerning working hours to ensure health and safety standards are met, and employers are required to comply with these regulations.

      Can I take comp time instead of overtime pay in Indiana?

      Yes, you can take comp time instead of overtime pay in Indiana, as long as you are non-exempt and work in the public sector. 

      Compensatory time, or comp time, allows employees to opt for time off instead of receiving overtime pay. If working on state holidays, employees may choose holiday comp time at a straight rate, which doesn’t count towards weekly overtime calculations. However, any work actually performed on holidays is considered when calculating overtime pay. 

      Requests for comp time in lieu of overtime must be documented via email, ideally before the overtime is worked, or at the latest by the end of the pay period. Comp time must be tracked and reported accurately on the employee’s timesheet. For example, if an employee earning $10 per hour works 45 hours in a week, they can choose to receive 7.5 hours of comp time for the 5 hours worked beyond the standard 40 hours, instead of extra pay at a premium rate. Unused comp time must be paid out after the quarter in which it was earned unless an extension is approved.

      Can I get overtime pay in Indiana without employer approval?

      In Indiana, employees can get overtime pay without employer approval. According to the FLSA, employees are entitled to compensation for all work completed that their employer knows about or reasonably should know about. Although prior approval is not needed for overtime pay, employees may still be subject to disciplinary measures if they work overtime without permission. If the employee deliberately hides overtime hours, it may violate company policies and procedures for reporting work hours.

      Does Indiana have double-time pay?

      Double-time pay is not a legal requirement in Indiana. The law instead states that employers have to pay overtime at a rate of one and a half times (1.5x) the employee’s regular pay rate for hours worked over 40 in a workweek. Employers are at liberty to create their own policies regarding double-time compensation for working specific hours or days, such as weekends.

      What is working ‘off-the-clock’ in Indiana?

      Working ‘off-the-clock’ in Indiana refers to performing job-related duties without recording the time spent on these activities, which means the work is not counted towards the employee’s paid hours. This practice is illegal under both state and federal labor laws, specifically the Fair Labor Standards Act (FLSA). It’s not uncommon to see employees working ‘off-the-clock’ in Indiana, as it’s in the interest of employers to avoid paying overtime. 

      Examples of ‘off-the-clock’ work include working during meal or rest breaks, pre-shift preparations like cleaning, post-shift duties such as site closure, and correcting mistakes or redoing projects after hours. Any time an employee spends in work-related activities, even if not explicitly requested but allowed (such as helping coworkers), should be compensated. This encompasses various unpaid tasks, whether onsite or offsite, including setup, cleanup, administrative duties, and waiting time between tasks, all of which must be considered compensable work hours.

      What are common ways employers avoid paying overtime in Indiana?

      Some employers in Indiana may engage in unlawful practices to avoid paying overtime. Recognizing these tactics is important as they are exploitative and violate both state and federal labor laws.

      • Misclassifying Employees: Employers may wrongly classify non-exempt employees as exempt by labeling them as managers or independent contractors when they don’t meet these classifications.
      • Failing to Pay for All Hours Worked: Some employers may not count hours spent on pre- or post-shift tasks, travel between job sites, or mandatory training as work time.
      • Encouraging Off-the-Clock Work: Employers might encourage employees to complete tasks like answering emails, finishing paperwork, or setting up without clocking in.
      • Averaging Hours Worked: To bypass overtime payments, some employers might average hours over a two-week period. This way they can report no overtime due when an employee works 45 hours one week and 35 the next.
      • Altering Work Schedules: Illegally changing or manipulating time records to show fewer hours worked can be a tactic to avoid overtime payments.
      • Offering Compensatory Time: Some employers offer compensatory time off instead of paying overtime, which is not permissible for non-exempt employees in the private sector under the FLSA.
      • Failing to Pay for Short Breaks: Short breaks less than 20 minutes are often not counted as work hours when they should be under the FLSA.
      • Not Paying for Unauthorized Overtime: Although employers may require authorization for overtime, they must pay for any overtime worked, regardless of whether it was approved beforehand.
      • Compelling Work During Breaks: Employers may pressure employees to work during meal or rest breaks without compensation.

      Can you work seven days in a row in Indiana?

      In Indiana, there is no legal limit on the number of hours most adults can work, so it’s possible for employees to work seven consecutive days without violating any law. However, different rules apply to minors who are restricted to the number of hours they can work in a day or a week. 

      • Minors aged 14-15: Limited to 3 hours per day or 18 hours a week. 
      • Minors aged 16-17: Can work no more than 8 hours per day, 30 hours per week, and 6 days a week.

      Certain regulated industries may enforce additional restrictions on working hours. All employees should monitor their hours to ensure they receive appropriate compensation for overtime if they work more than 40 hours in a week.

      For more details on child labor laws in Indiana, explore our comprehensive guide.

      How many ten-hour days can you work in a row in Indiana?

      State and federal labor laws in Indiana allow for any number of ten-hour work days, as there are no legal limits on the number of hours that most employees can work. Exceptions exist for minors, who are restricted to 8-hour work days. 

      As for adults, while some states have special overtime rules for ten-hour shifts over a four-day workweek, Indiana does not; here, overtime pay is required only after 40 hours in a workweek, except for exempt employees.

      What are full-time hours in Indiana?

      The federal Affordable Care Act (ACA) determines how many hours an employee needs to work to be considered a full-time worker. Under the ACA, a full-time employee is defined as someone who works 30 or more hours per week or at least 130 hours per month.

      How many hours straight can you legally work in Indiana?

      In Indiana, there are few restrictions on working hours, so most employees are required to work the hours set by their employer. Legally, employees aged 18 and older could work up to 24 hours a day. However, there are specific regulations for certain groups:

      • Minors under 18 are restricted to no more than eight hours per day, 40 hours per week or 6 days a week. 
      • Employees in regulated sectors, like transportation, are subject to rules on the maximum consecutive hours they can work.
      • Some workers may have contractual or union agreement terms that limit their working hours.

      Is overtime after eight hours or 40 hours in Indiana?

      Indiana does not recognize daily overtime; instead, overtime compensation is required when working hours exceed a weekly threshold. According to the FLSA and the Indiana Minimum Wage Law, overtime pay is required when an employee works more than 40 hours within a single workweek, unless they fall under an exemption from overtime regulations.

      Does working on the weekend qualify for overtime pay in Indiana?

      In Indiana, working weekends does not automatically entitle an employee to overtime pay, as neither state nor federal laws offer special overtime rules for weekend, holiday, or night work. Overtime is based solely on the total hours worked in a week. The standard workweek for most state employees begins at midnight on Sunday and ends the following Saturday night, totaling 168 hours. Employees must be paid at a rate of one-and-a-half times their regular hourly rate for any hours worked beyond 40 within this period. Thus, any work done over the weekend that pushes the total weekly hours past 40 qualifies as overtime.

      How many hours-off between shifts is required in Indiana?

      Indiana does not mandate a minimum rest period between shifts under its state laws, except for specific regulations in certain safety-sensitive industries such as transportation and trucking. For instance, federal rules restrict property-carrying drivers to 11 hours of driving after taking 10 consecutive hours off, while passenger-carrying drivers are limited to 10 hours after an eight-hour break. Unionized workers might have different rest requirements between shifts, as specified in their collective bargaining agreements. Furthermore, Indiana’s labor laws for minors enforce strict guidelines, restricting employees under 18 to no more than eight hours of work per day, 40 hours per week, or 6 days per week.

      What does ‘hours-worked’ include in Indiana?

      ‘Hours worked’ includes all time that an employee is required to be at their workplace or on duty, which can sometimes encompass commuting, meal breaks, or rest breaks, depending on the situation. Under both federal and state laws, employers must compensate employees for all hours worked. 

      • Meal Breaks: In Indiana, meal breaks do not have to be offered to employees. If provided, these breaks typically last about 30 minutes and are unpaid, unless the employee must work through the break, in which case it counts as hours worked.
      • Rest Breaks: While not legally required in Indiana, employers often provide short breaks (5 to 20 minutes), which are considered compensable work time under the FLSA.
      • Travel Time: Regular commuting is not paid or recognized as hours worked in Indiana. Unless that travel time involves work tasks or occurs during regular hours, it doesn’t count as work time. For instance, ordinary travel from home to work and back, even for special one-day assignments in another city, is not considered work time, whereas travel between job sites during the workday is.
      • Sleep and On-Duty Time: If an employee is required to be on duty for less than 24 hours, this is considered work time, even if the employee is allowed to sleep or engage in personal activities during slow periods. For shifts lasting over 24 hours, employees can agree with employers to exclude certain sleeping periods from hours worked if adequate facilities are provided and at least 5 hours of sleep is possible. 

      What is the most hours a salaried employee can work in Indiana? 

      In Indiana, salaried employees are not restricted to the number of hours they can work; this is determined by their employers. Despite not having fixed hours, salaried employees are generally expected to complete all tasks outlined in their employment contract. Nonetheless, they must be compensated for overtime, just like hourly employees. 

      While salaried employees don’t usually track hours, it can be useful for calculating overtime, and timesheet templates or time-tracking software can help. Employees are advised to keep detailed records of their work hours to ensure that their effective hourly wage does not fall below the minimum wage. If it does, they may have grounds to file a wage claim.

      What is the maximum number of hours an hourly employee can work in Indiana?

      In Indiana, most hourly employees aged 18 or older are allowed to work any number of hours, as long as they receive overtime pay for any hours worked beyond 40 in a workweek. Only those employed in regulated industries or under collective bargaining agreements may face restrictions on daily or weekly hours. For minors, Indiana imposes specific regulations: individuals under 18 are limited to no more than eight hours per day, 40 hours per week, and six days per week. Minors who are 16 years old are restricted to 30 hours per week, and those aged 14-15 are allowed to work up to three hours per day or 18 hours per week.

      Overtime Eligibility in Indiana

      Who is eligible for overtime pay in Indiana?

      In Indiana, employees are classified under the federal Fair Labor Standards Act (FLSA) as either exempt or non-exempt. Non-exempt employees, who are typically paid hourly and frequently occupy positions in fields such as manual labor or customer service, qualify for overtime pay once they exceed 40 hours of work in a week. Whereas exempt employees in Indiana do not receive overtime compensation, no matter how many hours they work in a week. The other exception is for small businesses with fewer than 40 employees; overtime pay may not be applicable for these employers.

      Who is exempt from overtime pay in Indiana?

      In Indiana, not every employee is eligible for overtime pay. According to federal regulations, an employee might be exempt from overtime rules if they occupy an executive, administrative, or professional position. However, merely having a particular job title does not automatically exempt someone from overtime. Employees must meet criteria, which are assessed through three tests:

      1. The salary basis test: Exempt employees must receive a fixed salary regardless of their work hours or tasks completed. This means they are considered salaried employees rather than being paid hourly.
      2. The salary test: Exempt employees must earn a salary that meets a minimum standard. In Indiana, the threshold for exemption in 2024 is $684 per week or $35,568 annually.
      3. The duties test: Employees’ primary duties must involve administrative, professional, or executive tasks, requiring discretion and independent judgment.

      Types of jobs which fall into the exempt from overtime category at the federal level include:

      • Airline employees
      • Commissioned sales employees
      • Computer professionals
      • Drivers
      • Executives and Managers
      • Learned professionals, such as lawyers
      • Live-in domestic employees
      • Farmworkers employed on small farms
      • Federal criminal investigators
      • Outside salespeople
      • Railroad employees

      Further information on jobs which are categorised as exempt as well as specific regulations that apply can be found on the official US Department of Labor website. 

      Can salaried employees get overtime pay in Indiana?

      Salaried employees should be paid their standard hourly wage for hours worked between 37.5 and 40 hours in a calendar week, referred to as the regular rate. For hours worked beyond 40 in a week, they should be compensated at one-and-a-half times their standard wage, known as the premium rate. Some employers try to avoid paying overtime by providing a fixed salary, but non-exempt salaried employees are still entitled to overtime pay. The conditions for a salaried employee to be exempt from overtime include:

      • Earning a minimum salary of $684 per week or $35,568 annually.
      • Holding a professional, administrative, or executive role that involves duties requiring independent judgment and discretion.

      Overtime Payment Calculations in Indiana

      What is my regular rate of pay in Indiana?

      The regular rate of pay is the hourly compensation an employee earns, and in Indiana, it must not be less than the minimum wage of $7.25 per hour as of 2024. This rate should include all forms of compensation such as commissions and bonuses.

      For employees paid hourly, this rate is straightforward. For those on salaries, piece rates, or commissions, the calculation differs:

      • Salaried employees: Multiply the monthly salary by 12 to get the annual salary. Divide this annual figure by 52 to determine the weekly salary, and then divide the weekly salary by the standard 40 hours to find the regular hourly rate.
      • Piecework or commission employees: Total earnings for the week are divided by the total hours worked to find the hourly rate. For group piecework, calculate the group’s rate by dividing the total pieces completed by the number of group members, then multiply this rate by each member’s hours worked to determine their regular rate of pay.

      How do you calculate overtime in Indiana?

      Under both the FLSA and the Indiana Minimum Wage law, overtime pay is set at 1.5 times the regular pay rate, often referred to as “time and a half.” Non-exempt employees qualify for this overtime rate once they exceed 40 hours of work in a workweek. To calculate the overtime pay due to an employee, follow these steps:

      1. Determine the employee’s regular rate of pay.
      2. Multiply this regular rate by 1.5 to get the hourly overtime rate.
      3. Multiply the hourly overtime rate by the total number of overtime hours worked within the workweek to find the total overtime compensation owed.

      It’s crucial to count only the actual hours worked and not to average hours across multiple workweeks when calculating overtime.

      How is overtime taxed in Indiana?

      In Indiana, overtime pay is subject to the same income tax rates as regular earnings, without any special tax rates applying to overtime. The amount of tax you pay is determined by your tax bracket, which varies based on your taxable income and filing status. However, if the addition of overtime pay substantially boosts your total income, you could find yourself in a higher tax bracket. This means you’ll owe more in taxes on all of your income, not just the overtime. It’s important to recognize that moving into a higher tax bracket due to overtime is temporary and only affects the tax for the pay period during which the extra earnings were received.

      Receiving Overtime Payment in Indiana

      How is overtime paid in Indiana?

      In Indiana, overtime wages must be paid to employees using the same method as regular wages, whether that be through check, direct deposit, or cash. Additionally, employers are required to provide a pay statement or ‘paystub’ for each pay period to the employee.

      When do I receive my overtime paycheck in Indiana?

      According to the FLSA and Indiana Minimum Wage law, employees are entitled to receive their overtime pay on the regular payday for the pay period in which the overtime was earned. Employers are required to issue paychecks on predetermined paydays. Generally, employees should be paid at least twice a month and no later than ten working days after the pay period has concluded.

      Violations of Overtime Law in Indiana

      What if my employer refuses to pay me overtime in Indiana?

      If your employer does not pay you the overtime wages you have earned, this could be a breach of labor laws, particularly the Indiana Minimum Wage law. Initially, it’s advisable to discuss this issue with your employer or HR department to see if it was a simple error that can be rectified. If the problem is not resolved, you have several options to recover your unpaid overtime wages:

      1. File a Wage Claim: You can submit a wage claim with the Indiana Department of Labor, which will investigate and could enforce payment.
      2. File a Wage Complaint: Another option is to lodge a complaint with the Wage and Hour Division of the US Department of Labor, which also has the authority to enforce labor laws.
      3. Pursue Legal Action: If necessary, you can file a civil lawsuit against your employer seeking not only the unpaid wages but also potential penalties and legal fees.

      Note that in Indiana, there is a three-year statute of limitations for filing claims related to unpaid overtime, so it’s important to act within this timeframe.

      What is the penalty for failing to pay overtime in Indiana?

      Employers who violate Indiana wage laws may face penalties and potential criminal charges. First time violations can result in penalties of up to $1,000 and up to ten days of prison time. Fines for repeat violations are up to $2,000 and up to 100 days of prison time. Employees can also seek liquidated damages and legal fees as well as their unpaid wages. If it is the first time an employer has violated wage laws and this was committed accidentally, they can avoid liquidated damages if they pay the full amount owed within 30 days.

      How can I file a wage claim for overtime in Indiana?

      To file a wage complaint in Indiana and recover unpaid wages, gather as much information and evidence as possible to support your claim. You can submit this evidence through an online form to the Indiana Department of Labor, which has a three-year statute of limitations for filing such complaints. Alternatively, you can file a wage claim with the US Department of Labor (DOL) to address unpaid overtime, by completing an online form or calling the DOL helpline at 1-866-487-9243. A DOL representative will then assist you in determining the best course of action. 

       Can employers retaliate against employees for making a wage claim in Indiana?

      In Indiana, retaliation against employees for making a wage claim is illegal. State and federal laws protect employees seeking to recover wages from retaliation. If an employee faces retaliation, such as termination or demotion, for filing a claim or participating in an investigation, they can file a retaliation complaint with the Wage and Hour Division of the DOL or pursue legal action to seek reinstatement, recover lost wages, and obtain liquidated damages.

      Important Cautionary Note

      This content is provided for informational purposes only. While we make every effort to ensure the accuracy of the information presented, we cannot guarantee that it is free of errors or omissions. Users are advised to independently verify any critical information and should not solely rely on the content provided.

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