Minimum wage

Indiana’s current minimum wage law is $7.25. IN Code 22-2-2-4(h)

Indiana employers must also comply with federal minimum wage laws, which currently sets the federal minimum wage at $7.25. See FLSA: Minimum Wage.



Tip minimum wage

Indiana’s minimum wage for tipped employees is $2.13. IN Code 22-2-2-4(c)(1)

If employers decide to pay employees the tipped minimum wage, they must also ensure the employees are paid the standard minimum wage when tips received by the employees are combined with the tipped wages earned. Should the employee’s hourly wage received from the employer combined with the employee’s tips not equal or exceed the hourly minimum wage, the employer must compensate the employee for the difference. IN Code 22-2-2-4(c)(1)





Tip pooling and sharing

Indiana minimum wage law does not address tip pooling or sharing. However, because most employees working in Indiana are subject only to the federal Fair Labor Standards Act, the rules and regulations regarding tip/gratuity pooling set forth in that law provides reasonable guidance.



Subminimum wage

Employees with disabilities

Indiana minimum wage laws do not allow employers to pay employees with disabilities a subminimum wage rate less than that the standard minimum wage, except when they work for nonprofit organizations that primarily provide employment for persons with disabilities or for assisting in their therapy and rehabilitation. Employees with disabilities that work for such nonprofit organization are exempt from Indiana’s minimum wage and overtime requirements. IN Code 22-2-2-3(j) .



Trainees

Indiana minimum wage laws allow employers to pay trainees under the age of 20 a subminimum wage of not less than $4.25 per hour to employees for the first 90 consecutive calendar days after the trainees are initially employed by the employer. An employer may not hire employees at the trainee subminimum wage in order to fully or partially displace another employee, IN Code 22-2-2-4(j)



Apprentices

Indiana minimum wage laws do not allow employers to pay apprentices a subminimum wage lower than the standard minimum wage, except for apprentices who perform services for licensed funeral directors and embalmers as part of their apprenticeship requirements necessary to obtain their own license. Funeral directory and embalmer apprentices are exempt from Indiana’s minimum wage and overtime exemptions. IN Code 22-2-2-3(g).



Learner

Indiana minimum wage laws do not allow employers to pay learners a subminimum wage lower than the standard minimum wage, except individuals who have completed a four (4) year course in medical school approved by law and who are working as interns or resident physicians at any accredited hospital. Such interns and resident physicians are exempt from Indiana’s minimum wage and overtime exemptions. IN Code 22-2-2-3(h).



Student learner

Indiana minimum wage laws do not allow employers to pay student learners a subminimum wage lower than the standard minimum wage, except:

  • student nurses working at hospitals or nurse training schools while enrolled and regularly attending classes in a nurses training school chartered or approved under law; and
  • students working for licensed funeral directors or embalmers while attending any school required by law to obtain a funeral director or embalmer license.

Student nurses and student funeral directors and embalmers are exempt from Indiana’s minimum wage and overtime requirements.

IN Code 22-2-2-3(g).



Student workers

Indiana minimum wage laws allow employer to pay student workers a subminimum wage that less than the standard minimum wage if the students provide services for any school, college, or university in which the student is enrolled and attends classes regularly. Such students are exempt from Indiana’s minimum wage and overtime requirements. IN Code 22-2-2-3(g).