Your pay matters. And when you spend hours at work beyond the standard 40 in a single workweek, then you need to make sure your employer properly compensates you. On those long weeks where you exchange free time for overtime hours, you need to be sure that you’re paid the correct wage. If you’re not, then you’re losing out on money, and your employer could be violating federal and state wage laws.
These laws dictate that employees who work more than 40 hours in a single workweek should be compensated at 1.5x their standard pay rate. The laws aren’t always straightforward. However, it pays to know Indiana state and federal wage laws to make sure you’re getting the money you deserve.
Summary of Indiana Overtime Law
The table below provides an overview of overtime laws in Indiana.
- Fair Labor Standards Act of 1938 (FLSA)
- Indiana Minimum Wage Law (Overtime Provision)
|Methods For Overtime Calculation:
- Hourly Employees: 1.5 x Normal pay rate for all hours above 40 in a single workweek.
- Hourly Employees with Plus Bonus and/or Commission: To determine the regular rate, take the total hours worked multiplied by the hourly rate, then add the workweek bonus/commission. Next, divide by the total hours in a single workweek. Finally, pay half of the adjusted rate for every hour of overtime.
- Salary Employees: To determine the regular rate, take the salary and divide by the number of hours the salary is supposed to cover.
- Add the regular rate for each hour up to 40 hours if the hours total less than 40. For all hours after 40, 1.5 x the regular rate.
- Pay 1.5 x the regular rate for each hour over if the total hours worked is above 40.
|Overtime Rules in Indiana
- Overtime pay is based on weekly, not daily, hours worked.
- Compensatory time off (comp time) is only legal for government employers.
- 3-year statute of limitations for collecting unpaid overtime provided by State law.
|Wage Complaint Filing Process
- File a Complaint to the U.S. Dept. of Labor
- File a Wage Complaint Form with the Indiana Dept. of Labor
Note: New legislation, high court rulings (federal court decisions included), ballot initiatives, and other influences can change state laws. Please refer to a qualified Indiana attorney or complete your own research to verify the laws in your state to ensure accuracy.
OT Laws in Indiana
The federal Fair Labor Standards Act (FLSA) covers most Indiana employees. FLSA overtime provisions help ensure employees receive the correct compensation for each hour of overtime worked. The overtime rate is 1.5x the standard pay for any hours over 40 worked in a single week. Additionally, employees not covered under the FLSA could be covered under the Indiana Minimum Wage Law. Be aware that there are confusing exceptions to these laws as well.
When Are Federal Overtime Laws Applicable?
Indiana employers with gross sales exceeding $500,000 in a year are subject to the FLSA overtime provisions. Interstate commerce language allows for these laws to cover more employers despite the initial interpretation of its limitations. Employees who handle mail, use the telephone, or even process credit cards for interstate commerce on a regular basis are also classified as interstate employees.
Does Working More Than Eight Hours in a Day Qualify as Overtime?
Employees must work 40 hours or more a week to qualify for overtime. Indiana state and federal overtime pay laws do not require employers to pay employees overtime rates for work days longer than 8 hours or for working nights, weekends, or holidays. More benefits may be provided by collective bargaining agreements and contracts between employers and employees as well.
Can Employers Force Overtime?
Employees can be required to work overtime. There are no laws preventing this as employers in Indiana set need-based schedules that may require employees to work more than normal. It is also important to point out that employers do not need to send a notice when increasing hours. Safety rules do apply, however, to industries where there are potential risks for working longer hours (transportation and trucking for instance).
Which Types of Employees Are Exempt from Federal Overtime Law
Federal overtime laws do not apply to certain “exempt” employees. There are certain tests in place that employees must pass to be qualified as exempt for the purpose of being denied overtime pay. This test is based on the employee’s job duties. Employees must also make at least $455 per week. It’s important to note that job titles themselves do not make employees exempt. As an example, an employee who “customarily and regularly directs the work of at least two or more other full-time employees” would be classified as an “executive employee” and would therefore be classified as “exempt.”
These are the classifications of employees typically exempt from federal overtime laws:
- “Learned Professionals”
- Executive Positions
- Outside Salespeople
- Taxi drivers
Do You Think You Have a Case? Contact Lemberg Law for Counsel
If you feel that an employer has taken advantage of you or someone you care about, please get in touch with the Lemberg Law legal team. Complete our form for a FREE case evaluation, or call 475-277-2200 NOW. You may be entitled to compensation for damages, injuries, or lost wages for Federal and state wage law violations.