Indiana (IN) Overtime Law Guide

Updated on Author: Sergei Lemberg

Updated on Author: Sergei Lemberg

Understanding Indiana overtime laws can help you ensure that you receive fair pay for your work. These laws set rules for overtime pay, helping protect employees from exploitation. Here, we will cover the basics of these laws, who qualifies for overtime, and what you can do if your employer violates these laws. By understanding your rights, you can take action if you feel you have been treated unfairly.

Since the regular Indiana minimum wage is $7.25 per hour, the state’s overtime minimum wage is $10.88 per hour, which is 1.5 times the regular rate.

According to Indiana overtime laws, non-exempt employees are entitled to overtime pay. Employees earning less than $684 per week ($35,568 annually) in non-exempt industries must receive overtime compensation. However, eligibility for overtime pay depends on the specific job duties and the nature of the business they work in.

Indiana follows the federal Fair Labor Standards Act (FLSA) when it comes to overtime laws. Therefore, this means that most employees should receive overtime pay for hours worked over 40 in a workweek.

Overtime pay must be at least one and a half times the employee’s regular hourly rate. For instance, if you earn $10 per hour, your overtime rate should be $15 per hour.

Who Qualifies for Overtime Pay?

Not all employees qualify for overtime pay. Also, the FLSA exempts certain employees based on their job duties and salary.

Here are some common exemptions:

  1. Executive Employees: Managers who supervise at least two full-time employees and have hiring and firing authority.
  2. Administrative Employees: Workers performing office or non-manual work related to management or business operations who exercise independent judgment.
  3. Professional Employees: Employees who require advanced knowledge, typically gained through education or specialized training.
  4. Outside Sales Employees: Salespeople who work primarily outside the employer’s place of business.
  5. Computer Employees: Certain computer professionals, such as systems analysts and software developers, earn at least $27.63 per hour.

How to Calculate Overtime Pay

You first need to know your regular hourly rate to calculate overtime pay. Consequently, divide your total weekly pay by the number of hours you worked. Then, multiply the regular rate by 1.5 to find your overtime rate. Therefore, multiply this overtime rate by the number of overtime hours worked.

For example:

  • You work 45 hours a week.
  • Your regular hourly rate is $12.
  • Your overtime rate is $12 x 1.5 = $18.
  • You worked 5 overtime hours.
  • Your overtime pay is 5 x $18 = $90.

Overtime for Tipped Employees

Tipped employees in Indiana must receive overtime compensation. However, their minimum wage is lower than the standard state minimum wage. In Indiana, the regular minimum wage is $7.25, while the minimum wage for tipped employees is $2.13.

When tipped employees work overtime hours, calculate their overtime rate based on the full minimum wage of $7.25 per hour, not the lower tipped wage. Undoubtedly, this ensures fair compensation for extra work.

Overtime for On-Call Employees

In Indiana, non-exempt employees on call may still qualify for overtime pay. Therefore, they can receive overtime if their on-call duties push their total work hours over 40 in a week.

When an on-call employee performs actual work, the hours spent working are eligible for overtime pay if they exceed 40 hours per week. Additionally, travel time to and from work during an on-call period counts as extra hours worked, provided it occurs outside regular hours.

However, simply waiting while on call without performing any duties does not count towards the calculation of hours worked for overtime compensation.

Common Overtime Violations

Unfortunately, some employers try to avoid paying overtime.

Here are some common violations to watch for:

  1. Misclassifying Employees: Employers may wrongly classify employees as exempt to avoid paying overtime.
  2. Off-the-Clock Work: Asking employees to work off the clock, before or after their scheduled hours.
  3. Incorrect Calculation of Hours: Not counting all hours worked, including short breaks and preparation time.
  4. Failing to Pay for Travel Time: Not paying for travel time that should be counted as work hours.
  5. Improperly Averaging Hours: Averaging hours over two weeks to avoid paying overtime in one week.

What to Do if Your Employer Violates Overtime Laws

If you believe your employer is not paying you the overtime you deserve, you have options. First, document everything. For that reason, keep records of your hours worked, pay received, and any communications with your employer about overtime.

Next, discuss the issue with your employer. Therefore, they might correct the mistake once it’s brought to their attention. Also, if this doesn’t resolve the issue, you can file a complaint with the Indiana Department of Labor or the U.S. Department of Labor’s Wage and Hour Division.

How to File an Overtime Claim

To file a claim, gather all necessary documents, such as pay stubs, time records, and employment contracts. Contact the appropriate agency and follow their process for submitting a complaint. Nonetheless, this usually involves filling out forms and providing evidence of the violation.

Legal Protections Against Retaliation

It’s important to know that you are protected from retaliation if you file a complaint. Your employer cannot legally fire you, demote you, or take any negative action against you for asserting your rights under overtime laws. Therefore, if you face retaliation, you can file a separate complaint for that issue.

Overtime for Salaried Employees

Even if you are salaried, you might still be entitled to overtime pay. The key factor is whether you are classified as exempt or non-exempt under the FLSA. Non-exempt salaried employees should receive overtime pay for hours worked over 40 in a workweek. Also, your employer must calculate your regular hourly rate based on your salary and hours worked.

Special Considerations for Certain Industries

Some industries have unique overtime rules. For example, healthcare workers, first responders, and certain government employees may have different regulations. Therefore, it’s essential to understand the specific rules that apply to your job.

Seeking Legal Help

Navigating overtime laws can be complex. Consequently, if you believe your employer has violated overtime laws and not given you the pay you deserve, contact Lemberg Law for assistance.

Our experienced legal team will evaluate your case for free. Call us at 475-277-2200 or complete our online form to get started. We can guide you through the process and help you get the compensation you are owed.

Understanding Indiana overtime laws is crucial for ensuring you are paid fairly. Remember, most employees should receive overtime pay for hours worked over 40 in a workweek, and there are protections in place to prevent employers from exploiting loopholes.

Undoubtedly, if you think your rights have been violated, take action and seek help from legal professionals who can assist you in claiming your rightful pay.

Think You Have a Case?

If you believe your employer has violated overtime laws and not given you overtime pay, contact Lemberg Law for assistance. Our experienced legal team will evaluate your case for free. Call us at 475-277-2200 or complete our online form to get started.

Sergei Lemberg

About the Author:

Sergei Lemberg is an attorney focusing on consumer law, class actions related to automotive issues, and personal injury litigation. With nearly two decades of experience, his areas of practice include Lemon Law (vehicle defects), Debt Collection Harassment, TCPA (illegal robocalls and texts), Fair Credit Reporting Act, Overtime claims, Personal Injury cases, and Class Actions. He has consistently been recognized as the nation's "most active consumer attorney." In 2020, Mr. Lemberg represented Noah Duguid before the United States Supreme Court in the landmark case Duguid v. Facebook. He is also the author of "Defanging Debt Collectors," a guide that empowers consumers to fight back against debt collectors and prevail, as well as "Lemon Law 101: The Laws That Lemon Dealers Don't Want You to Know."

See more posts from Sergei Lemberg

    Is a custodian worker at a school consider a government employee?

Leave a Reply or Comment

Write a comment below to share online. Or, instead you can to our legal team.

Please select your star rating.

Briefly describe your experience Briefly describe your experience

What’s your name? What’s your name?

What’s your phone number? Please enter a valid phone number

Want to know if you could sue? Get a free legal evaluation from Lemberg Law?

Get Your No-Obligation
Case Evaluation

Send a secure message to our legal team.

What’s your name? What’s your name?
What’s your email address? What’s your email address?
What’s your phone number? What’s your phone number?
Briefly describe the problem Briefly describe the problem
Confidentiality Guarantee: We keep your information completely confidential and will not send you spam or sell your information.
By submitting above, I agree to the privacy policy and terms and consent to be contacted by an agent via phone call or text message at the phone number(s) listed above, including wireless number(s).