Indiana Minimum Wage — As of October 2026, the minimum wage in Indiana is $7.25 per hour, unchanged since 2009, with no increase scheduled. Tipped workers may be paid $2.13 per hour in cash as long as tips bring total hourly pay to $7.25 — the employer must cover any shortfall.
Employers Covered By The Indiana Minimum Wage Law
Indiana employers with 2 or more employees are covered by the Indiana Minimum Wage Law and Indiana Overtime Law. Therefore, most Indiana employers and employees are covered by the minimum wage and overtime provisions of the federal Fair Labor Standards Act (FLSA); however those not covered under federal law may still be covered by the Indiana Minimum Wage Law.
Last Paycheck
Final wages must be paid on or before the next regularly scheduled payday on which the employee would have been normally paid had the employee remained employed.
Indiana Overtime — Indiana has its own overtime statute requiring 1.5 times the regular rate for hours worked over 40 in a week, matching federal law, with no daily-overtime trigger. Because the rule exists in state law, Indiana workers can pursue overtime claims in state proceedings rather than federal court alone. Indiana bans local minimum-wage ordinances, so the statewide rate applies everywhere. Common violations include misclassifying employees as independent contractors and wrongly treating hourly workers as “exempt” based on job titles rather than actual duties.
