📅 2026 Update: Changes to Indiana Overtime Laws

Since the original article on Indiana's overtime laws was written, there have been important updates that affect how overtime is calculated and what qualifies for exemptions. The U.S. Department of Labor (DOL) has made changes to salary thresholds for overtime exemptions, which can impact many workers in Indiana.

This add-on outlines those changes, with essential details continuing in the original article further down the page.

🆕 📈 Recent Changes to Salary Levels

The DOL published a final rule on April 26, 2024, to raise the salary levels for exempt employees under the Fair Labor Standards Act (FLSA). However, this rule was vacated on November 15, 2024, by a court, returning the salary threshold to the previous level of $684 per week. This means that many employees who previously qualified for exemption may now be eligible for overtime pay.

📅 🔄 Future Updates Planned

Starting July 1, 2027, the DOL plans to update salary thresholds every three years. This will help ensure that the thresholds reflect current earnings data, which is essential for keeping pace with inflation and changing economic conditions.

📝 📊 Determining Exemption Status

Employers in Indiana need to assess their employees to determine if they meet the exemption criteria. This includes the salary basis test, salary level test, and duties test under the FLSA. Accurate evaluations help ensure compliance and avoid penalties.

🔍 📌 Key Points to Remember

  • The minimum salary level for exemption is $684 per week.
  • The next salary threshold update is set for July 1, 2027.
  • Employers must assess exemption status based on specific criteria.
  • Changes in the law can impact many employees’ eligibility for overtime pay.

💡 Tips for Understanding Indiana Overtime Laws

Reviewing your specific situation with an attorney is important for understanding your rights regarding overtime.

📋 🛠️ Know Your Rights

Employees should be aware of their rights under the FLSA. If you work over 40 hours in a week and are non-exempt, you are entitled to overtime pay.

⚖️ 🔍 Check Exemption Criteria

Employers must check if an employee meets the criteria for exemption. This includes salary level and specific job duties. Not all salaried employees are exempt from overtime.

📅 📊 Keep Accurate Records

Employers must keep detailed records of hours worked and wages paid. This is crucial for compliance and can protect both employees and employers in cases of disputes.

📞 🆓 Seek Government Assistance

The DOL provides various resources, including guidance materials and fact sheets. These can help both employers and employees understand overtime regulations clearly.

🗓️ 📈 Stay Informed About Changes

Changes to federal and state laws can affect overtime regulations. Staying informed about upcoming updates ensures compliance and helps protect employees’ rights.

❓ Frequently Asked Questions

❓ What is the current minimum salary for exemption in Indiana?

The minimum salary level for exemption under the FLSA is $684 per week as of November 15, 2024.

🚨 How often will salary thresholds be updated?

The DOL plans to update salary thresholds every three years, with the next update scheduled for July 1, 2027.

📋 What records must employers keep regarding overtime?

Employers are required to maintain accurate records of hours worked and wages paid to employees. This helps ensure compliance with FLSA regulations.

🚀 Are salaried employees always exempt from overtime pay?

No, salaried employees may not always be exempt from overtime pay. They must meet specific criteria regarding their job duties and compensation to qualify for exemption.

🌎 Can state overtime laws offer more protection than federal laws?

Yes, state overtime laws can vary and may provide additional protections beyond federal standards. Employees should check with their state labor departments for specific regulations.

🧾 What should I do if I believe I am owed overtime pay?

If you believe you are owed overtime pay, you can contact your employer to discuss the issue. If necessary, seek assistance from the DOL or other resources that can help resolve pay disputes.

⚖️ Recent Court Rulings in Overtime Cases

Recent court rulings have clarified aspects of overtime eligibility and salary thresholds, which directly impact employees and employers in Indiana.

Explore more recent rulings in the news section for updates on overtime laws and related issues: more rulings on the news page.

End of October 2026 Update






Indiana Overtime Laws: What You Need to Know

Overtime pay is a crucial aspect of employment law that ensures workers receive proper compensation for any additional hours worked beyond the regular 40-hour workweek. While the Federal Fair Labor Standards Act (FLSA) establishes minimum wage and overtime standards across the United States, some states, including Indiana, have additional overtime pay requirements. In this article, we will discuss Indiana overtime laws in detail, including the types of workers covered, overtime pay rates, and other related topics.

Overview: Indiana Overtime Laws

Indiana is one of the few states that do not have their own overtime laws. Instead, the state follows federal overtime rules under the FLSA. The FLSA requires employers to pay their employees one and a half times their regular rate of pay for any hours worked beyond 40 hours in a workweek. However, to qualify for overtime pay, employees need to be classified as "non-exempt" under the FLSA.

Indiana Overtime Laws

Exempt vs. Non-Exempt Employees

Exempt employees are not eligible for overtime pay under the FLSA. Generally, these are employees who earn a salary and perform executive, professional, or administrative duties. For example, managers, executives, and professionals such as doctors, lawyers, and engineers are typically considered exempt.

On the other hand, non-exempt employees are entitled to overtime pay for any hours worked beyond 40 in a workweek. These employees are typically paid hourly and do not perform exempt duties. Examples of non-exempt employees include production workers, secretaries, and manual laborers.

📝 See Also

Indiana Overtime Pay Rates

Under federal law, non-exempt employees are eligible for overtime pay at a rate of one and a half times their regular rate of pay. However, Indiana does not have its own minimum wage and overtime laws, so employers in the state have to comply with the federal minimum wage and overtime requirements.

As of January 1, 2021, the federal minimum wage is $7.25 per hour. This means that non-exempt employees are eligible for overtime pay at a rate of $10.88 per hour (1.5 times the minimum wage of $7.25). However, some states have higher minimum wage rates, which means that their overtime pay rates are also higher.

It is essential to note that employers cannot use any of the following to compute the regular rate of pay:

1. Gifts

2. Vacation pay

3. Premium pay for weekends or holidays

4. Most bonuses and commissions

Exceptions to Indiana Overtime Laws

While most employees in Indiana are eligible for overtime pay, certain workers are exempt from federal and state overtime laws. Here are some examples:

1. Agricultural Work

Farmworkers who work on small farms or family farms are typically exempt from overtime pay requirements. However, those who work on larger farms that engage in interstate commerce are entitled to overtime pay.

2. Independent Contractors

Independent contractors are not eligible for overtime pay because they are not considered employees under the FLSA.

3. Salaried Employees

Some salaried employees are exempt from federal and state overtime laws. These include executives, administrators, and professionals such as doctors, engineers, and lawyers.

4. Commission-Based Employees

Employees who work on a commission-based salary are exempt from federal and state overtime laws. However, their employers must still ensure that their employees earn at least the minimum wage for all hours worked.

5. Computer Professionals

Computer professionals who earn more than $27.63 per hour are exempt from federal and state overtime laws. However, they must have primary duties related to computer systems analysis, programming, or software engineering.

Enforcement of Indiana Overtime Laws

The United States Department of Labor (DOL) enforces federal overtime laws in Indiana. The DOL's Wage and Hour Division investigates overtime pay claims and takes appropriate legal action against employers who violate the FLSA.

Employees who believe that their employers have violated overtime laws can file a complaint with the DOL. The DOL will then investigate the complaint and make a determination. If the DOL finds that the employer violated the FLSA, the employer may be required to pay the employee back wages, damages, and fines.

Conclusion

In conclusion, Indiana follows federal overtime laws under the FLSA. Non-exempt employees are entitled to overtime pay at a rate of one and a half times their regular rate of pay for any hours worked beyond 40 in a workweek. However, some employees, such as agricultural workers, independent contractors, and salaried employees, may be exempt from overtime pay requirements. It is essential to ensure that your employer is complying with the FLSA to avoid any potential legal issues.

IN overtime laws are largely the same as federal regulations and indeed federal regulations would supersede any Indiana overtime law created that might be contrary to the federal law.  Indiana overtime laws states in general that employees that work more than 40 hours in a work eek must be paid at least 1.5 times their typical salary.  There are some limited exceptions, but most full time employees are qualified for overtime under these Indiana overtime laws.

What are the federal provisions for overtime relating to IN overtime laws?

Indiana overtime laws are modified and subject to the federal Fair Labor Standards Act, which sets baselines for overtime pay and other rules.  When you are not paid your due overtime pay, you will make your complaint to the federal Department of Labor rather than to an Indiana government agency.

What is the text of IN overtime laws?

The entire text of IN overtime laws is located within Indiana Code 22-2-2 and also covers the exception to the overtime law accordingly.  This is part of the larger IN overtime laws and minimum wage law that sets the standards for pay, overtime and to claim compensation and owed wages from employer.

Who is not entitled to overtime under IN overtime laws?

Indiana overtime laws will not be applied to the following persons:

- Minors under the age of 16

- Those working in a trade, business or profession where they are free of control, direction and supervision under the terms of their contract or self-employment.

- Those working on commission

- Those working for parents, spouses or children

- Members of religious orders providing services for a religious organization

- Student nurses working in a hospital

- Those apprenticing to be an embalmer or funeral directory

- Interns and resident physicians at hospitals

- Insurance professionals working commission

- Those with disabilities working for organizations tailored to help them rehabilitate through their employment

- Students working for schools where are also enrolled

- Certain, but not all agricultural workers

Consult with the section of the law accordingly to learn more about miscellaneous provisions related to Indiana overtime laws, including those that work across state lines, process agricultural products, those employed seasonally and executive, administrative or professionals.

Does my lunch break count for overtime under IN overtime laws?

Any lunch break that you receive does not have to be paid and if it is unpaid, the lunch break does not count towards the hours you have worked during the week, under Indiana overtime laws.  Short breaks that are no longer, than 30 minutes will count towards your overtime, but there is no Indiana overtime laws that state that you must be allowed a break unless you are a minor working at least a six hour shift.

Serving On-Call

Indiana overtime laws limit the ability for employees that serve on call to be paid overtime or even regular wages.  if an employee is serving o call but remains on the premises or is under workplace supervisor, then they will  be paid overtime and other wages.  Those that are on-call, but free to leave as they please, generally, will not paid for the hours spent on call.

What do I do if I have a dispute related to Indiana overtime law?

If you believe that you deserve extra time worked under Indiana overtime law, then you should seek out an Indiana overtime law attorney.  This expert in Indiana overtime law will analyze your profession and work as well as employment agreements to determine your eligibility.  If the employer is found to be in violation of Indiana overtime law, then the employee is entitled to back pay and damages, as also prescribed by Indiana overtime law.