Indiana employment law blends federal and state-level rules, giving employers clear boundaries while minimizing regulatory complexity. From right-to-work provisions to physician non-compete restrictions and workplace safety oversight, the state’s legal landscape supports operational flexibility and baseline worker protections.
When it comes to talent and workforce management, Indiana-based employers need to comply with the following state employment laws:
The below information was last updated May 7, 2025. It is not intended as legal advice. Also, unless otherwise noted below, the following laws predominantly apply to the private sector.
A subset of employment law, labor law focuses on the relationships between employers, employees, and labor unions, particularly in the context of collective bargaining and workplace rights.
Central to US labor law is the National Labor Relations Act (NLRA), which protects employees’ rights to organize, join unions, and negotiate working conditions while restricting unfair labor practices. Still, states can enact additional laws, such as Right-to-Work statutes, that influence union membership and dues requirements.
Right-to-work states prohibit employers from requiring union membership or dues as a condition of employment (a.k.a. union security agreements).
Indiana is one of 26 states that currently have right-to-work laws.
Employment law governs the individual rights of employees and their professional relationship with their employers, such as working hours, fair wages, anti-discrimination protections, and workplace safety.
| Indiana Minimum Wage | The state of Indiana mirrors the federal minimum wage rate of $7.25, including the tipped minimum wage of $2.13 for employees who earn tips with their base pay. Note: Indiana has minimum wage exemptions for certain employees. |
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Indiana Overtime Pay Laws |
Overtime pay in Indiana is calculated at one-and-a-half times the employee’s regular pay rate. However, the state has exemptions for certain employee classifications. |
| Indiana Pay Equity Law | Under the Indiana Minimum Wage Law of 1965, employers in the state with at least two employees can’t discriminate between employees on the basis of sex by paying employees in such establishment a rate less than the rate at which the employer pays employees of the opposite sex in such establishment for equal work on jobs the performance of which requires equal skill, effort, and responsibility, and which are performed under similar working conditions. |
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Indiana Pay Transparency Law |
Indiana currently has no pay transparency laws or regulations. |
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Indiana Final Paycheck Law |
In Indiana, employees who voluntarily resign from a job or are involuntarily terminated must receive their final paycheck by the next regular payday. |
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Indiana PTO Payout Laws |
Indiana doesn’t have specific PTO payout requirements, as it bases such decisions on an employer's policy. It does, however, allow the use of "use-it-or-lose-it" policies. |
| Indiana Paid Sick Leave (PSL) | Indiana currently has no paid sick leave laws or regulations. |
| Indiana currently has no PFML laws or regulations. Although, employers with 50 or more employees must still comply with the federal Family and Medical Leave Act (FMLA), which provides eligible employees with up to 12 weeks of unpaid leave every 12 months for various reasons. | |
| Indiana Maternity Leave | Indiana doesn't have a maternity leave law, as this type of leave is an employer-provided benefit. As the state also doesn’t have a mandated PFML program, employees must instead use FMLA leave or another type of employer-provided leave. |
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Indiana Voting Leave Law |
Indiana currently has no voting leave laws or regulations. |
All states must comply with federal health and safety standards overseen by the Occupational Safety and Health Administration (OSHA).
Indiana, however, also adopted and imposes OSHA-approved regulations identical to those federal standards. Indiana’s State OSHA Plan is overseen by Indiana OSHA (IOSHA).
Indiana currently has no work break laws or regulations.
As described by Indiana Code 22-9 and enforced by the Indiana Civil Rights Commission, employers in Indiana are prohibited from discriminating against employees based on:
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Indiana also requires employers to comply with specific anti-harassment mandates. Employers must not, for example, create or fail to take corrective action to address a hostile work environment or quid-pro-quo sexual harassment.
Indiana doesn’t, however, require employees to complete any harassment or discrimination training courses.
| Indiana Non-Compete Agreement Laws | Indiana is one of several states that limit the use of non-compete agreements. Effective July 1, 2023, non-compete agreements are unenforceable for primary care physicians. Such agreements are unenforceable for other physician types as well if the employer terminates the physician's employment without cause. |
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Indiana Retirement Plan Laws |
Indiana currently has no mandatory retirement plan laws or regulations. |
| Indiana Lactation Laws | Indiana Code 22-2-14-2 requires employers with 25 or more employees to provide a private space (other than a toilet stall) for expressing breast milk and to make reasonable efforts to provide a refrigerator for storing expressed milk. |
This information is provided as a courtesy and may be updated at any time. It is not intended as legal guidance. If you have questions or concerns, we encourage you to seek the advice of a qualified employment or labor attorney or advisor.
Between constantly changing employment laws and updates to the Affordable Care Act (ACA), keeping your workplace compliant can be a time-consuming and costly challenge. Eliminate the stress and stay up to date with our Compliance Dashboard. View compliance alerts and get a bird’s eye view of what you need to do to avoid fines and penalties.
