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Indiana Overtime Laws

If you're like most people, you look forward to payday. You know how much you'll receive and you probably even know how your check will be spent. So it's important that you are fully compensated for your work. However, you may be losing money if your employer is not properly following overtime pay laws.

Typically, when an employee works more than 40 hours in a workweek, they are entitled to overtime pay of 1.5 times their normal rate. There are several exceptions and exemptions to who receives overtime pay (and when), but it's worth extra money in your paycheck to be familiar with the basics of Indiana overtime laws.

Indiana Overtime Law Summary

This chart highlights key provisions of Indiana overtime laws.

State and Federal Statutes

Indiana Overtime Rules

  • State/Federal Overtime pay rate is 1.5 time the employees regular rate
  • Overtime is calculated based on the number of hours worked on a weekly basis (not daily)
  • Compensatory time off (comp time) is illegal for private employers
  • State law provides for a 2-year statute of limitations for collecting unpaid overtime

Filing a Wage Complaint

Note: State laws are subject to change. It's important to verify the information you read about by conducting your own research or consulting with an Indiana attorney.

Indiana Overtime Laws

Most Indiana employees are covered by the overtime provisions of the federal Fair Labor Standards Act (FLSA). Those not covered under federal law may still be covered by overtime rules contained in the Indiana Minimum Wage Law. Both the FLSA and the Indiana law generally require employers to pay employees 1.5 times their regular rate of pay as overtime compensation when working more than 40 hours during a work week. However, there are many exceptions to the overtime pay requirements of both federal and state law.

When do federal overtime rules apply?

Federal overtime rules apply to Indiana employers with gross sales of $500,000 a year or more, in addition to those engaged in interstate commerce. While it may seem as if these rules only apply to large employers, the interstate commerce language makes federal rules apply to most workplaces. Courts have rules that employees that routinely handle the mail, process credit cards, or even use the telephone as part of their employment are engaging in interstate commerce.

Overtime Pay for More Than Eight Hours in a Day

Federal and state overtime laws only require overtime pay when an employee works more than 40 hours in a work week. There is no state or federal law requiring overtime for hours worked beyond eight hours a day. Some collective bargaining agreements or contracts provide for more benefits than required by law. Similarly, there are no laws requiring overtime pay for working on holidays, at night, or on weekends.

Is mandatory overtime legal?

Indiana employers can set work hours to fit their needs, including requiring an employee to work longer or later hours. In general, there are no laws that set how much notice must be given to the employee or how many hours an employee may work in one shift. It's important to note that some industries, such as transportation and trucking, may have different safety rules that require limits on hours worked during a given period of time.

Who is exempt from federal overtime laws?

Not all employees are entitled to overtime pay under federal law. These employees are typically known as exempt employees. For an employee to be considered exempt from federal overtime laws, employees must meet certain tests regarding their job duties and be paid on a salary basis a wage not less than $455 per week (as of 2017). Job titles do not determine exempt status; instead, the law focuses on an employee's specific job duties. For example, to qualify for an "executive" exemption the employee must "customarily and regularly direct the work of at least two or more other full-time employees."

The following types of employees are frequently exempt from federal overtime rules:

  • Executive
  • Administrator
  • Outside salespeople
  • Those employed as "learned professionals" (CPA, lawyer, executive chef)
  • Taxi drivers

Questions about Indiana Overtime Laws? An Attorney has Answers

If you're being denied overtime pay, there are legal options available to you. Indiana and the Federal Labor Department have online wage complaint forms to help resolve your situation. You can also hire an attorney to guide you through the claim process, and recover available lost wages and any damages. Learn more from an experienced Indiana employment law attorney about how the state and federal laws apply to your case.

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