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Disclaimer
This site is not intended to constitute legal advice and should not be relied upon as such. Additionally, no
attorney-client relationship has been created by your visiting and reading this site. Please consult a legal
professional before taking any action you believe may result in liability or litigation. Nothing on this site
creates an express or implied contract. While efforts are made to present only accurate and current
information, laws can and do change and interpretations vary among jurisdictions, so all information is
presented on an “as-is” basis. This site is for informational purposes only.
This site is not intended to constitute legal advice and should not be relied upon as such. Additionally, no
attorney-client relationship has been created by your visiting and reading this site. Please consult a legal
professional before taking any action you believe may result in liability or litigation. Nothing on this site
creates an express or implied contract. While efforts are made to present only accurate and current
information, laws can and do change and interpretations vary among jurisdictions, so all information is
presented on an “as-is” basis. This site is for informational purposes only.
If you do not find the answer to your question through these summaries or
related links, feel free to contact us with your question. We'll do our best to help
you find the answer you are looking for.
related links, feel free to contact us with your question. We'll do our best to help
you find the answer you are looking for.
Payment upon Separation from Employment
Employees who are fired, discharged, terminated, or laid off
When an employer discharges or lays off an employee, the employer must pay the
employee all wages due by the next regular pay day. Indiana Code 22-2-9
Employees who quit or resign
When an employee quits, the employer must pay the employee all wages due by the next
regular pay day.
If an employee leaves employment voluntarily and the employer does not know employee's
whereabouts or address, the employer must pay the employee:
- within ten (10) business days after the employee has made a demand for the wages due
the employee; or
- when the employer receives an address where the wages may be sent or forwarded.
Indiana Code 22-2-5
Employees who are suspended or resigns due to a labor dispute (strike)
When an employee resigns employment due to a labor dispute, the employer must pay the
employee all wages due by the next regular pay day. Indiana Code 22-2-9
Wages in Dispute
In case of a dispute over wages, an employer must give notice to the employee of the
amount of wages which he concedes to be due, and shall timely pay such amount, but the
acceptance by the employee of any such payment does not constitute a release as to any
balance of his claim. Indiana Code 22-2-9
Employees who are fired, discharged, terminated, or laid off
When an employer discharges or lays off an employee, the employer must pay the
employee all wages due by the next regular pay day. Indiana Code 22-2-9
Employees who quit or resign
When an employee quits, the employer must pay the employee all wages due by the next
regular pay day.
If an employee leaves employment voluntarily and the employer does not know employee's
whereabouts or address, the employer must pay the employee:
- within ten (10) business days after the employee has made a demand for the wages due
the employee; or
- when the employer receives an address where the wages may be sent or forwarded.
Indiana Code 22-2-5
Employees who are suspended or resigns due to a labor dispute (strike)
When an employee resigns employment due to a labor dispute, the employer must pay the
employee all wages due by the next regular pay day. Indiana Code 22-2-9
Wages in Dispute
In case of a dispute over wages, an employer must give notice to the employee of the
amount of wages which he concedes to be due, and shall timely pay such amount, but the
acceptance by the employee of any such payment does not constitute a release as to any
balance of his claim. Indiana Code 22-2-9
Frequency of Wage Payments
An employer must pay employees their wages no less frequently than twice per month. An
employer must pay all wages earned within 10 days of the end of a pay period. Salaried
employees do not need to be paid at least twice per month. An employee can request to
be paid at least every two weeks. An employer must pay employees for wages earned in a
pay period within 10 days of the end of the pay period. Indiana Code 22-2-5
An employer must pay employees their wages no less frequently than twice per month. An
employer must pay all wages earned within 10 days of the end of a pay period. Salaried
employees do not need to be paid at least twice per month. An employee can request to
be paid at least every two weeks. An employer must pay employees for wages earned in a
pay period within 10 days of the end of the pay period. Indiana Code 22-2-5
Manner of Payments
An employer may pay wages by:
- cash,
- check, redeemable upon demand and without discount at a bank or other financial
institution readily available to the employee, or
- by direct deposit into an account at a financial institution designated by the employee.
Indiana Code 22-2-5
Direct Deposit
An employer may pay wages by direct deposit, so long as the employee designates the
financial institution with which the wages are deposited. Indiana Code 22-2-5 In Indiana,
an employer can require an employee to receive payment of wages by direct deposit. IN
DOL Wage & Hour FAQs.
An employer may pay wages by:
- cash,
- check, redeemable upon demand and without discount at a bank or other financial
institution readily available to the employee, or
- by direct deposit into an account at a financial institution designated by the employee.
Indiana Code 22-2-5
Direct Deposit
An employer may pay wages by direct deposit, so long as the employee designates the
financial institution with which the wages are deposited. Indiana Code 22-2-5 In Indiana,
an employer can require an employee to receive payment of wages by direct deposit. IN
DOL Wage & Hour FAQs.
| EmploymentLawHandbook.com |
| Your Employment and Labor Law Resource |
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Deductions from Wages
An employer can not deduct wages from an employers paycheck or fine an employee for
any of the following:
- cash shortages
- breakage, damage, or loss of the employer's property
- required uniforms
- required tools
- other items necessary for employment
Indiana Code 22-2-8
An employer may not deduct or withhold wages from an employees wages or accept an
assignment from an employee of their wages, unless it is:
- in writing;
- signed by the employee personally;
- by its terms revocable at any time by the employee upon written notice to the employer; and
- agreed to in writing by the employer.
An employee can only consent to deductions from his or her pay check if it falls into a
certain category of deduction, including:
- premiums on an insurance policy;
- contributions to a charitable organization;
- purchase price of bonds, securities or stock of the employing company;
- labor union dues;
- purchase price of merchandise sold by the employer to the employee;
- amount of loan made to the employee by the employer;
- contributions of the employee to a hospital service or medical expense plan; and
- payment to an employee's direct deposit account.
For an deduction or assignment to be valid, the employee must have delivered an executed
copy of the consent to the deduction or the assignment to the employer within ten (10) days
after its execution.
If an employer has overpaid an employee, the employer may deduct from the wages of the
employee the amount of the overpayment. An employer must give an employee two (2)
weeks notice before the employer may deduct any such overpayment of wages from the
employee's wages.
An employer cannot deduct from an employees wages more than:
- twenty-five percent (25%) of the employee's disposable earnings for that week; or
- the amount by which the employee's disposable earnings for that week exceed thirty (30)
times the federal minimum hourly wage rate.
Indiana Code 22-2-6
Uniforms, Tools, and Other Equipment Necessary for Employment
Indiana law does not prohibit an employer from requiring an employee to pay for required
uniforms or necessary equipment, but it cannot deduct the cost of a mandatory uniform
from the employee's paycheck. An employer may, with an employee's written consent,
deduct the cost of an optional uniform purchased by the employee. IN DOL Wage & Hour
FAQ
Medical or Physical Exams, including Drug Tests, Required for Employment
Indiana does not have any laws prohibiting an employer from requiring an applicant or
employee to pay the cost of a medical examination or the cost of furnishing any records
required by the employer as a condition of employment.
An employer can not deduct wages from an employers paycheck or fine an employee for
any of the following:
- cash shortages
- breakage, damage, or loss of the employer's property
- required uniforms
- required tools
- other items necessary for employment
Indiana Code 22-2-8
An employer may not deduct or withhold wages from an employees wages or accept an
assignment from an employee of their wages, unless it is:
- in writing;
- signed by the employee personally;
- by its terms revocable at any time by the employee upon written notice to the employer; and
- agreed to in writing by the employer.
An employee can only consent to deductions from his or her pay check if it falls into a
certain category of deduction, including:
- premiums on an insurance policy;
- contributions to a charitable organization;
- purchase price of bonds, securities or stock of the employing company;
- labor union dues;
- purchase price of merchandise sold by the employer to the employee;
- amount of loan made to the employee by the employer;
- contributions of the employee to a hospital service or medical expense plan; and
- payment to an employee's direct deposit account.
For an deduction or assignment to be valid, the employee must have delivered an executed
copy of the consent to the deduction or the assignment to the employer within ten (10) days
after its execution.
If an employer has overpaid an employee, the employer may deduct from the wages of the
employee the amount of the overpayment. An employer must give an employee two (2)
weeks notice before the employer may deduct any such overpayment of wages from the
employee's wages.
An employer cannot deduct from an employees wages more than:
- twenty-five percent (25%) of the employee's disposable earnings for that week; or
- the amount by which the employee's disposable earnings for that week exceed thirty (30)
times the federal minimum hourly wage rate.
Indiana Code 22-2-6
Uniforms, Tools, and Other Equipment Necessary for Employment
Indiana law does not prohibit an employer from requiring an employee to pay for required
uniforms or necessary equipment, but it cannot deduct the cost of a mandatory uniform
from the employee's paycheck. An employer may, with an employee's written consent,
deduct the cost of an optional uniform purchased by the employee. IN DOL Wage & Hour
FAQ
Medical or Physical Exams, including Drug Tests, Required for Employment
Indiana does not have any laws prohibiting an employer from requiring an applicant or
employee to pay the cost of a medical examination or the cost of furnishing any records
required by the employer as a condition of employment.
Notice of Wage Reduction
Indiana does not have any laws addressing when or how an employer may reduce an
employees wages or whether an employer must provide employees notice prior to
instituting a wage reduction.
Indiana does not have any laws addressing when or how an employer may reduce an
employees wages or whether an employer must provide employees notice prior to
instituting a wage reduction.
Statement of Wages (Pay Stub)
For each pay period, an employer must provide each employee a statement of the hours
worked by the employee and the wages paid to him listing deductions made. Indiana Code
22-2-2-8
For each pay period, an employer must provide each employee a statement of the hours
worked by the employee and the wages paid to him listing deductions made. Indiana Code
22-2-2-8
Record Keeping Requirements
Indiana does not have any laws requiring an employer to keep any employment-related
documents.
Federal law requires every employer covered by the Fair Labor Standards Act (FLSA) to
keep certain records for each covered, nonexempt worker, for at least 3 years. For more
information, visit FLSA.
Indiana does not have any laws requiring an employer to keep any employment-related
documents.
Federal law requires every employer covered by the Fair Labor Standards Act (FLSA) to
keep certain records for each covered, nonexempt worker, for at least 3 years. For more
information, visit FLSA.
Notice Requirements
Indiana does not have any laws requiring employers to provide employees, whether at hire
or at any other time, of notice of wage rates, dates of pay, employment policies, fringe
benefits, or other terms and conditions of employment.
Indiana does not have any laws requiring employers to provide employees, whether at hire
or at any other time, of notice of wage rates, dates of pay, employment policies, fringe
benefits, or other terms and conditions of employment.
| Wage Payment Laws for Private Sector Employers |
Topics Covered:
- Frequency of Wage Payments
- Manner of Payments
- - Direct Deposit
- Payment upon Separation from Employment
- - Employees who are fired, discharged, or terminated
- Employees who quit or resign
- Employees who is suspended or resigns due to a labor dispute (strike)
- Employees who are laid off
- Wages in Dispute
- Deductions from Wages
- - Cash shortages
- Damage, loss or destruction of employer property
- Dishonored or returned checks
- Uniforms
- Tools and other items necessary for employment
- Pre-hire medical, physical, or drug tests
- Notice of Wage Reduction
- Statement of Wages (Pay Stub)
- Record Keeping Requirements
- Notice Requirements
