Overview of Indiana's Minimum Wage Requirements
The minimum wage in Indiana stands at $7.25 per hour. This rate is applicable to employers who employ two or more employees, as per the information provided by the Department of Labor. In terms of overtime, employers are required to pay premium rates after an employee has worked 40 hours in a week.
Interestingly, Indiana's minimum wage has remained consistent at $7.25 per hour from 2008 to 2023, which is the same as the federal minimum wage floor. This information is sourced from the U.S. Department of Labor and can be found on the Rich States, Poor States website. As of January 1, 2024, there have been no future enacted increases or indexed automatic annual adjustments mentioned for the minimum wage in Indiana, according to the National Conference of State Legislatures.
Understanding Local Minimum Wage Variations
While the state-wide minimum wage in Indiana is $7.25 per hour, there are variations at the local level. For instance, as of July 1, 2024, the minimum wage in Marion County, Indiana, is set at $10.00 per hour. This is part of a statewide legislation passed by the Indiana General Assembly in March 2024 and signed into law by Governor Eric Holcomb in April 2024. The law aims to gradually increase the minimum wage to $15.00 over a period of four years.
On the other hand, the minimum wage requirements in Lake County, Allen County, and St. Joseph County, Indiana, are set at $7.25 per hour. However, in St. Joseph County, the minimum wage requirements varied based on the job group for building construction power equipment operators. These local variations highlight the importance of staying informed about the specific requirements in your area.
Minimum Wage Eligibility and Exemptions
In Indiana, the minimum wage law applies to most employers and employees, with the state adhering to the federal Fair Labor Standards Act (FLSA). However, there are certain exemptions to these provisions. For instance, tipped employees must be paid at least $2.13 per hour if the employer claims a tip credit. If the employee’s tips combined with the hourly wage do not equal the minimum wage, the employer is required to make up the difference.
Another exemption is for employees under 20 years of age. Indiana employers may pay these employees a special training minimum wage of $4.25 per hour for the first 90 consecutive calendar days after the employee is initially employed. It's important to note that there are many exceptions to the overtime pay requirement, most of which can be found at Indiana Code § 22 -2-2-3 (a) – (p).
Minimum Wage Considerations and Compliance Tips
Food business employers in Indiana need to be aware of several key minimum wage legal and compliance considerations. The basic combined cash and tip minimum wage rate is $7.25. Employers can count a maximum tip credit of $5.12 towards meeting these minimum wage requirements. This means that the minimum cash wage that must be paid to tipped employees is $2.13. A tipped employee is defined as an employee who receives more than $30 in tips monthly.
Covered non-exempt workers are entitled to a federal minimum wage of not less than $7.25 per hour effective July 24, 2009. Deductions made from wages for items such as cash shortages, required uniforms, or customer walk-outs are illegal if the deduction reduces the employee's wages below the minimum wage or cuts into overtime pay. Tips may be considered as part of wages, but the employer must pay not less than $2.13 an hour in direct wages and make sure that the amount of tips received is enough to meet the remainder of the minimum wage.
FAQs
- What is the current minimum wage in Indiana? The current minimum wage in Indiana is $7.25 per hour.
- Are there any future increases planned for the minimum wage in Indiana? As of January 1, 2024, there have been no future enacted increases or indexed automatic annual adjustments mentioned for the minimum wage in Indiana.
- Who is eligible for minimum wage in Indiana? Most employees in Indiana are eligible for minimum wage, with exceptions for tipped employees and workers under 20 years of age during their first 90 days of employment.
Information Source Links
- Department of Labor
- National Conference of State Legislatures
- Rich States, Poor States
- Indiana Minimum Wage Law
- Indiana labor laws page
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