Indiana’s Overtime Labor Law Requirements

July 1st, 2004 Posted by Mark

If we’re employers or employees in the state of Indiana—to use a hypothetical situation—how would we manage overtime issues? Well, that’s a relatively simple question for us to answer, compared to other states. That’s because Indiana sticks closely to the federal labor laws on overtime, the so-called Fair Labor Standards Act, or FLSA.

The FLSA states, and the Indiana labor law for overtime follows, that employees are entitled to at least the minimum wage of $5.15 per hour and the overtime rate of one and a half times their wage for any time over 40 hours spent working in a work week.

This FLSA rule is valid and applicable for any employer that participates in interstate commerce, or produces goods or services that are used between and among states. The employer must also produce an annual gross volume of at least $500,000 to qualify for FLSA and Indiana overtime regulations. On the other hand, all schools, hospitals, and health care facilities have to follow these overtime laws.

Now here’s what’s especially important for us to consider—where the Indiana law diverges, or differs, from the FLSA federal laws. As of July 1, 1998, Indiana decided that any employer that otherwise wasn’t held to the FLSA laws—such as small and local businesses—now would have to pay their employees time and a half like everyone else.

Still, there are exemptions from this rule, meaning employees who don’t qualify for overtime payment no matter what company they work for. This includes employees of companies where they are the only employee, along with any employee under the age of 16. Independent contractors, employees receiving commissions, employees of family members, and even student nurses and apprentice embalmers are all exempt from this law.

This list goes on to include several other trades and occupations, so be sure to further examine the law if you have any questions.

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