labor lawAdivision of labor law center

Indiana employers will be updating their minimum wage posters again, as another minimum wage change looms.

On July 24, 2009 when the federal minimum wage increases from $6.55 to $7.25 per hour, the Indiana minimum wage will increase as well. This 70-cent increase is the third in as many years, resulting in an Indiana minimum wage that is $2.10 higher than in early 2007.

Under both Indiana and federal law, tipped employees can be paid less than the full minimum wage. In this respect, the federal and Indiana minimum wages law are similar.

On one significant point they differ, however. Indiana law covers many smaller businesses that would not be affected by the federal minimum wage law.

Both the federal and the Indiana minimum wage rates will go up by 70 cents on July 24, 2009. The old rate under both is $6.55 an hour and the new hourly rate will be $7.25. For Indiana and other employers, the good news is that no federal minimum wage hike is scheduled for 2010.

The federal Fair Labor Standards Act, also known as the FLSA, establishes the national minimum wage. For more information, visit www.dol.gov, the website of the U.S. Department of Labor (DOL). (more…)

The Indiana minimum wage will be increasing – yet again – on July 24, 2008. The federal FLSA (Fair Labor Standards Act) dictates which companies must pay their employees the federal minimum wage.

According to the FLSA, all local, state and federal government agencies must pay workers the federal minimum wage. Health care facilities, hospitals, schools and all companies earning over $500,000 per year are also covered by FLSA. Businesses engaged in interstate commerce must follow the FLSA standards, too. This rule can apply, too, to employees who handled business with out-of-state customers or vendors, too, even if the company as a whole doesn’t conduct interstate commerce.

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