Indiana Labor Laws have undergone significant changes in 2025, impacting workers across the state. These updates aim to align state regulations with federal standards, enhance worker protections, and modernize employment practices.
Here’s a comprehensive overview of the key changes:
Youth Employment Laws Overhaul
Effective January 1, 2025, Indiana’s youth employment laws have been amended to mirror federal child labor standards more closely. Notable changes include:
- Extended Working Hours for Older Teens: Employees aged 16 and 17 can now work the same hours and days as adults without parental permission.
- Later Work Hours for Younger Teens: 14- and 15-year-olds may work until 9 p.m. from June 1 through Labor Day, an extension from the previous 7 p.m. cutoff.
- Registration Requirements: Employers with five or more minor employees must register each minor in the Youth Employment System (YES) and update their status monthly.
Minimum Wage and Overtime Regulations
Indiana continues to adhere to the federal minimum wage of $7.25 per hour as of 2025. Key aspects include:
- Tipped Employees: Those earning tips must receive at least $2.13 per hour, with tips making up the difference to the standard minimum wage.
- Overtime Pay: Employees working over 40 hours in a week are entitled to 1.5 times their regular hourly rate.
- Salary Threshold for Exempt Employees: The annual salary threshold for overtime exemption has increased to $58,656, affecting more salaried employees.
Break and Rest Periods
While Indiana does not mandate specific meal or rest breaks, employers offering breaks must comply with federal guidelines:
- Short Breaks: Breaks lasting 20 minutes or less must be paid.
- Meal Breaks: Longer breaks are not required to be paid if the employee is completely relieved of duties.
Leave of Absence Law (Effective July 1, 2025)
Senate Bill 409 mandates that employers provide unpaid leave for employees to attend school attendance conferences or case conferences for their children. Employers should update their leave policies to reflect this new requirement.
Workers’ Compensation and Insurance Rates
Indiana’s workers’ compensation laws have seen adjustments in line with national trends:
- Insurance Rate Adjustments: Changes in insurance rates reflect efforts to balance cost reductions for employers with expanded benefits for workers.
- Benefit Enhancements: Some states have broadened worker protections, including changes to benefits for terminated employees and death benefits.
Right-to-Work Law
Indiana maintains its status as a right-to-work state, meaning employees cannot be compelled to join or pay dues to a labor union as a condition of employment.
Final Paycheck and Payday Frequency
Employers are required to pay employees their final paycheck on or before the next regular payday. Failure to do so may result in civil lawsuits and potential damages.
Paystub Requirements
Employers must provide pay statements to employees aged 16 and older for each pay period, detailing:
- Hours worked
- Wages received
- Deductions from wages
These statements can be provided electronically or in hard copy.
Wage Deductions and Garnishments
Indiana permits certain wage deductions and garnishments, including:
- Authorized Deductions: For items like uniforms, training, or charitable contributions, provided they are agreed upon in writing.
- Garnishments: Cannot exceed 25% of an employee’s disposable weekly earnings or the amount by which weekly earnings exceed 30 times the federal minimum wage.
Workplace Safety and Health
Employers are encouraged to utilize INSafe, Indiana’s free workplace safety consultation service. INSafe assists employers in identifying hazards, implementing safety programs, and training employees without levying fines or penalties.
Labor Law Posters
Employers must display updated labor law posters in the workplace. These posters inform employees of their rights and responsibilities under Indiana Labor Laws. Free posters are available online through the Indiana Department of Labor.
Conclusion
The updates to Indiana Labor Laws in 2025 reflect a commitment to aligning state regulations with federal standards and enhancing worker protections. Employees should familiarize themselves with these changes to ensure their rights are upheld, while employers must adjust policies and practices to maintain compliance.
Read Related Articles:
State of Washington Labor Laws 2025
