Indiana Labor and Employment Law Basics

Understanding Indiana state labor laws to protect your business and your employees
By Michelle Cramer The purpose of Indiana labor laws is to make certain that employers treat their staff fairly. The Indiana state government implements regulations in order to improve working conditions and ensure the protection of fair income for all employees.

As a business owner, it may be difficult to fully grasp all of the regulations and restrictions that you must abide by in regard to your employees. An examination of Indiana labor and employment law basics reveals three main areas to get you started:

1. Employers must pay their employees comparable salaries or minimum wage and compensate employees fairly for overtime under Indiana work laws.

2. Labor laws in Indiana provide that employees have specific rights even after dismissal from or quitting a job.

3. An employer must maintain workers’ compensation insurance to protect his business and employees under Indiana state work laws.

Pay your employees appropriately under Indiana labor and employment law

Businesses employing two or more employees must pay those employees the state or federal established minimum wage at that time, whichever is higher. Additionally, there is a requirement to pay employees time and a half (the sum of their regular hourly wage plus half of their regular hourly wage) for each hour worked over 40 hours in one week's time.
Try:  The U.S. Department of Labor provides a quick reference for the current minimum wage in Indiana. You must hang a minimum wage poster at your business for employees to see. Visit Poster Compliance Center to purchase a professional Indiana labor law posters, or visit the Indiana Department of Labor to download a free copy that still meets requirements.

Apply Indiana employment regulations regarding dismissed employees

Indiana maintains an "employment at-will" policy, which gives employers the freedom to hire, terminate and everything in between at their own discretion, as long as it doesn't involve discrimination. Under the "Blacklisting Law," if a former employee uses your business as a reference, you can only provide truthful information to potential employers that may contact you.
Try:  The frequently asked questions on the State of Indiana website provide more requirements for employers upon an employee's departure from the company, including vacation pay. Employers must also maintain unemployment insurance. Access the Employer Handbook for unemployment insurance information on the Indiana Department of Workforce Development.

Protect your business under Indiana labor law with workers' compensation insurance

Indiana employment law requires employers to maintain workers' compensation insurance to protect employees and their families if injury or death occurs on the job. The burden of proof that the injury occurred while working is on the employee. However, employers may have to cover medical expenses prior to the conclusion of litigation.
Try:  The Workers’ Compensation Board of Indiana provides a handbook for employers that fully explains their responsibilities when it comes to workers' comp. If an employee has a workers’ compensation claim against you, be sure you hire an attorney, like Klezmer and Associates, to represent your interests.

• Under Indiana state labor laws for children, your business cannot employee someone under the age of 17 unless that child has a work permit, high school diploma or GED. Children must be at least 14 to work at all. Additionally, employees that are 14 or 15 can only work until 7 p.m. during the school year and 9 p.m. during summer vacation