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.
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.
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. Â 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. Â 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. Â 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. Â 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. Â 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. Â This expert in Indiana overtime law will analyze your profession and work as well as employment agreements to determine your eligibility. Â 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.
