Indiana Payroll: Indiana Minimum Wage Guide in 2023

All workers in Indiana are entitled to receive an hourly Minimum Wage rate according to Indiana Labor Laws and the Fair Labor Standards Act (FLSA). This Minimum Wage requirement also includes special rules for tipped workers.

How Much Is Indiana Minimum Wage in 2023?

Indiana minimum wage is $7.25 per hour, which is the same as the federal minimum wage under the FLSA.

Indiana minimum wage law not only covers minimum wage in Indiana for 2023 but extends to rules for tipped workers, training wags, overtime pay, as well as other employer requirements. 

Indiana minimum wage law requires employers first and foremost to pay employees a wage of at least $7.25 per hour, as well as 1.5 times their regular rate of pay for all hours worked in excess of forty (40) hours during a work week. However, there are exceptions to the overtime pay requirement under Indiana Overtime Laws. Ensure you understand how to manage FLSA-exempt employees.

Employers must also furnish employees with certain information regarding: 

• Hours worked by the employee
• The wages paid to the employee
• A listing of deductions made

This requirement can and is best satisfied when processing Indiana payroll. Employers who are struggling with such requirements due to outdated or even manual paper processes should contact an Indiana Payroll Service for help.

Employer Requirements

In addition to properly paying employees, employers must also display the Indiana Minimum Wage Poster in a conspicuous place in the area where employees are
employed.

It is important that employers ensure minimum wage compliance. Although rather straightforward, noncompliance and violations can land employers in a world of trouble. Modern payroll software can help.

Rules for Tipped Workers in Indiana

Employers in Indiana who operate restaurants, hotels, or other types of businesses that employ workers receiving tips should know the special rules for tipped workers in Indiana. 

If an employee receives a tip credit, the employer may pay a tipped wage of at least $2.13 per hour. However, it is important to note that if an employee's wage and tips do not total the same amount that they would have received under the standard state minimum wage of $7.25, the employer must make up the difference for that shift.

Indiana Wage When Training Employees

Employers in Indiana may pay a wage of $4.25 per hour for the first 90 consecutive days of employment if the employee is under the age of 20.

Get Help with Indiana Minimum Wage Compliance

Managing compliance with minimum wage might seem simple, but with varying rules for things like tipped workers and training employees, Indiana employers need to stay in the know.

Employers who are struggling with minimum wage compliance in Indiana should consider reaching out to an Indiana Payroll Provider for assistance.

To see how TruPay is already helping countless businesses manage minimum wage compliance in Indiana, contact us today.