Understanding Indiana Work Laws
Navigating the world of employment can be tricky, especially when you factor in the mix of federal regulations and state-specific rules. In Indiana, both employers and employees need to understand the specific Indiana work laws to ensure compliance and fair practices.
This guide offers a comprehensive look at the key work laws in Indiana, from the initial hiring process to termination and everything in between. It’s designed as a resource for:
- Employers
- HR professionals
- Business owners
- Employees working in Indiana
Whether you’re looking to brush up on your knowledge or need a quick reference point, this guide will help you understand your rights and responsibilities under Indiana law.
At-Will Employment in Indiana
Indiana is an “at-will” employment state. This means a few things:
- Your employer can fire you for any reason, or no reason at all. The only catch is that the reason can’t be discriminatory or illegal.
- You can quit your job whenever you want, without giving notice.
There are a few exceptions to at-will employment. For instance, if you received some form of compensation for accepting the job, you might have a stronger case against termination. Also, your employer can’t violate any of your legally protected rights. The case of Orr v. Westminster Village North, Inc. highlights how complicated these disputes can become.
What does this mean for employers? Documentation is key. If you’re firing someone, document the reasons why. Clear employment contracts can also help to avoid any misunderstandings.
Hiring and Onboarding
Indiana has a few rules about what employers need to do when they bring on new staff.
New Hire Reporting
The state of Indiana wants to know about every new hire and rehire within 20 days of their start date. The state uses this information to enforce child support orders and administer other government programs.
Employers can report new hires through the Indiana New Hire Reporting Center online, or by creating and submitting electronic reports.
Criminal Record Access
In Indiana, you can’t discriminate against someone based on an arrest or conviction record that has been expunged or sealed. Background checks are legal and may be mandated in some industries.
If you’re doing background checks, it’s a good idea to have clear and consistent policies about them. If you use a third-party background check service, make sure you’re following the Fair Credit Reporting Act (FCRA).
Wage and Hour Laws
Both the federal government and the state of Indiana have laws in place to protect workers’ rights when it comes to fair pay and reasonable working hours. Here’s a look at the major provisions:
Minimum Wage
Indiana’s minimum wage is $7.25 per hour, which is the same as the federal minimum wage. If the federal government raises the minimum wage at some point, Indiana’s minimum wage will automatically rise to match it.
For tipped employees, Indiana law says they must be paid at least $2.13 per hour, as long as the tips they receive bring their total earnings up to $7.25 per hour or higher.
Overtime Pay
Indiana requires employers to pay overtime at a rate of 1.5 times the employee’s regular rate of pay for any hours worked over 40 in a single workweek. This is in line with the federal Fair Labor Standards Act (FLSA).
Keep in mind that some employees, such as people in executive, administrative, and professional roles, may be exempt from receiving overtime pay.
Wage Payment and Deductions
When an employee leaves a job, their final paycheck must be paid on the next regularly scheduled payday.
Employers can make some deductions from an employee’s paycheck as long as they have a written agreement with the employee and as long as the deductions don’t exceed the lesser of $2,500 per year or 5% of the employee’s weekly disposable earnings.
Leave Laws in Indiana
There are times when you need to take time away from your job. Here’s what Indiana law says about different types of leave.
Jury Duty, Witness Duty, and Voting Leave
If you’re called to jury duty in Indiana, your employer can’t take action against you because you’re serving on a jury.
The same protection extends to those who are required to appear in court as a witness.
However, Indiana doesn’t require employers to provide paid time off so you can vote.
Military Leave
Indiana law allows for leave for military service and military training. If you qualify, you can take up to 10 days of unpaid leave per calendar year for military training.
If your employer has 50 or more employees, they must provide military family leave in accordance with the federal Family and Medical Leave Act (FMLA).
Family and Medical Leave (FMLA)
The federal FMLA entitles eligible employees to take up to 12 weeks of unpaid leave for specific family and medical situations. You may be able to take up to 26 weeks of leave to care for a servicemember under FMLA.
Keep in mind that Indiana doesn’t require employers to provide paid family or medical leave, so you’ll likely be taking unpaid leave.
Workplace Safety and Health
Your employer has a legal duty to keep your workplace reasonably safe. Here’s how the state of Indiana works to make that happen:
Indiana Occupational Safety and Health Administration (IOSHA)
Indiana has its own version of the federal Occupational Safety and Health Administration (OSHA). It’s called IOSHA, and it enforces workplace safety standards with the goal of protecting employees from hazards and making sure workplaces are safe.
Employers in Indiana must comply with all applicable OSHA standards, which means providing training, putting safety programs in place, and generally maintaining a safe workplace.
Smoke-Free Air Law
Indiana’s Smoke-Free Air Law bans smoking in most workplaces and public spaces to protect employees and the public from secondhand smoke.
Employers are responsible for enforcing the Smoke-Free Air Law in their workplaces. This includes posting signs that clearly state smoking is not allowed.
Discrimination and Harassment
Both state and federal laws are in place to protect Indiana workers from discrimination and harassment.
Protected Characteristics
Under Indiana law, it’s illegal to discriminate against employees on the basis of race, religion, color, sex, disability, national origin, ancestry, or veteran status. The Indiana Equal Employment Disabilities Act (IEDADPA) applies to workplaces that employ 15 or more people.
These laws protect you from discrimination in all aspects of your job, from hiring and firing to promotions and compensation.
Harassment
Harassment is a form of discrimination. It’s defined as unwelcome behavior based on a protected characteristic, such as race or sex.
Employers are required to take steps to prevent and address harassment in the workplace. That means implementing anti-harassment policies, offering training to employees, and promptly investigating any complaints that arise.
Pregnancy and Childbirth Accommodation
Indiana’s Pregnancy and Childbirth Accommodation law requires employers with 15 or more employees to provide reasonable accommodations for pregnant employees. These accommodations can include things like modified work schedules or job duties.
Workers’ compensation and unemployment insurance
In Indiana, as in other states, there are systems in place to help employees who are injured on the job or who lose their jobs through no fault of their own.
Workers’ compensation
If you’re hurt or become ill as a direct result of your work, workers’ compensation insurance should cover your medical bills and lost wages.
In Indiana, employers are required to carry workers’ compensation insurance. If you qualify, workers’ comp will pay about two-thirds of your average weekly wage, calculated over the 52 weeks leading up to your injury.
Unemployment insurance
Unemployment insurance offers temporary financial help to workers who are laid off or otherwise lose their jobs through no fault of their own.
This insurance is funded by employer contributions. To be eligible, you’ll have to meet certain requirements, such as having worked a minimum amount of time and actively looking for a new job.
A few more Indiana work laws
Here are some other things to know about Indiana work laws:
Child labor laws
Indiana has rules restricting the types of jobs children can do and the number of hours they can work. If an employer has five or more minor employees, they must use the state’s Youth Employment System (YES).
Firearm laws
In Indiana, employers can’t prohibit workers from storing legal firearms in their vehicles on company property. However, they’re allowed to limit or prohibit firearms on other company properties.
Because these laws are complex and nuanced, employers should speak with an attorney about their rights and responsibilities regarding firearms in the workplace.
In Conclusion
For Indiana employers, staying on top of state and federal labor laws is more than just good practice – it’s essential for avoiding legal headaches and fostering a healthy, productive work environment.
Navigating these laws can feel overwhelming, but you don’t have to do it alone. HR professionals, employment lawyers, and government agencies can provide invaluable guidance and support to ensure your business is compliant.
Remember, Indiana work laws aren’t static. They evolve, so it’s crucial to regularly review and update your company policies and practices to reflect the latest changes. By staying informed and proactive, you can protect your business and create a fair and equitable workplace for your employees.