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1 Thank you for downloading Agent 77 s STATE EMPLOYMENT REGULATIONS FOR INDIANA. This form is provided to you as is. As provided, we believe it meets the requirements needed for state compliance, as applicable, at the time you download it. Any substantive change to the contents of this document may result in potential legal liability for you and your company. Agent 77, Inc. accepts no liability or responsibility for any of our documents that have had the contents altered beyond simply filling in the appropriate blanks and/or replacing place holder text and adding your company logo and information. This document is provided to you with the understanding it is not a legal or accounting opinion and should not be construed as such, and that Agent 77, Inc. is not engaged in the business of rendering legal or accounting services. If you need specific advice on any legal or accounting issue, the services of a competent professional should be sought. Please see for more information. This and all documents downloaded from our website are Copyright 2005, 2006, 2007, 2008, 2012, 2013 Agent 77, Inc. Reminder: Agent 77 s license prohibits you from copying and distributing this STATE EMPLOYMENT REGULATIONS FOR INDIANA to anyone outside of your company. Doing so is a violation of this license and will result in the revocation of your subscription and/or prosecution under federal copyright laws as well as possible civil litigation. Please see for a copy of the current license agreement. Indiana_Regs
2 What s New Indiana now requires that employees who are volunteer firefighters or emergency medical responders not be penalized for being late to work or for leaving work when responding to a fire or medical emergency call Indiana law now states that employees may not be required to use any annual, vacation or sick leave when attending jury duty. Also, if an employee notifies their employer in advance of the need for leave for jury duty, they may not be subject to any adverse employment action for responding to the jury summons As of July 1, 2006 work permits for minors must include the maximum hours that the minor will be employed. Minors may have more than one work permit, but the issuing agency must make sure that the total hours for all work permits does not exceed the maximum for a minor of the given age Indiana minimum wage follows the federal minimum which was raised to $5.85 as of July 24, Indiana minimum wage follows the federal minimum which was raised to $6.55 as of July 24, Indiana minimum wage follows the federal minimum which was raised to $7.25 as of July 24, Changes were made to the following sections: Discrimination, Jury Duty, Payment of Wages, Child Labor, Family Leave, Payment of Wages and Voting Time. The following sections were added: Breast Feeding Rights, New Hire Reporting, Job Reference Liability and Smoking in the Workplace Changes were made to the following section: State Continuation of Benefits Changes were made to the following sections: Child Labor, New Hire Reporting and Wage Payments Changes were made to the following section: Smoking in the Workplace. Indiana_Regs
3 Introduction Employment laws vary from state to state with some being more employee-friendly than others. Federal regulations set minimum standards of worker protections that all employers of a given size must meet. Individual states, however, are free to grant workers additional or expanded rights or protections above this federal minimum. Virtually all employers in the U.S. are subject to federal employment regulations. Only the smallest, strictly local employers are not subject to federal regulations. If an employer does any of the following, they are participating in interstate commerce and are subject to federal employment regulations: Production of goods for commerce, such as transportation or communication Use of mail over state lines Interstate communications using the telephone Use of the Internet over state lines Interstate communications using electronic mail Make purchases from out-of-state vendors Sell to customers in other states This summary of employment regulations does not include information for those few employers not subject to the federal minimum employment regulations. Many states have regulations for public employers that are different than those for employers in the private sector. This document also does not include information on regulations (federal and state) that apply only to public sector employers. In this document we summarize the workplace regulations and worker protections available in Indiana. Although not an exhaustive list, it covers the major topics small to mid-sized employers must deal with on a regular basis. Covered areas include: Wage, hour and overtime rules (including child labor and break rules); Leaves of absence (family leaves, voting time and jury duty); Discrimination and harassment regulations; and State rules on continuation of benefits. The federally mandated, but state run new-hire reporting requirements are covered under a separate document, available for download from Libretto or from the Agent 77 store. The following Quick View table summarizes these regulations. This is followed by a more detailed description of these regulations. Please be sure to read both carefully to understand your responsibilities under Indiana and federal law. Also, see the resources section below for reference websites and Libretto tools that can help you comply with these regulations. Indiana_Regs 1 of 8
4 QUICK VIEW OF STATE EMPLOYMENT REGULATIONS FOR INDIANA Topic Minimum Wage Overtime Payment of Wages Work Hours and Breaks Child Labor Voting Time Indiana Regulation $7.25 / hour Minimum of $4.25 for first 90 days for employees under 20 years old Tipped employees may be paid a minimum of $2.13 Some localities have a higher minimum. Posting requirements apply. Non-exempt employees must be paid at least 1.5 times their regular rate for hours worked over 40 in a given week Employees must be paid at least twice per month, no more than 10 days after the close of the period. Final paychecks must include any accrued vacation unless an employer's written, posted policy states otherwise. Final paychecks must be delivered no later than the payday following termination. Indiana has no break time rules, except for minors. Employers employing minors under 18 must keep an employment certificate on file (issued by Superintendent of Schools). Certificates must specify hours of work One or two 30-minute breaks required for every 6 hours worked Federal and Indiana law prohibit minors in certain occupations. See the U.S. Department of Labor and the Indiana Department of Labor for information on these prohibitions (contact information is in the reference section). See the details section below for restrictions on hours minors may work Indiana has no voting time rules except as listed below. Indiana_Regs 2 of 8
5 QUICK VIEW OF STATE EMPLOYMENT REGULATIONS FOR INDIANA Family Leave Jury Duty Military Leave The Federal Law is outlined below: Employers with 50 or more employees must grant up to 12 weeks of unpaid family medical leave to employees who have completed a year of service or 1250 hours Leave must be granted for birth or adoption of a child, serious medical condition of the employee, to care for a family member with a serious medical condition, qualifying exigency for military leave and serious illness/injury of covered service member for military leave. Employee must be reinstated to same or equivalent position after completion of leave Benefits must be maintained during leave Indiana has a separate leave requirement for certain relatives of a person who is called to active duty; the leave is for up to ten (10) days. Leave is required, but is unpaid Employees may not be required to use annual, vacation or sick leave when attending jury duty Employees who notify their employers of a jury summons in advance may not be subject to any adverse employment action Employee must be reinstated to same position after completion of jury duty Employees must be granted up to 15 days of leave each year for military training. This leave may be paid or unpaid, but employees must be restored to the position and seniority upon return Employers must grant up to 5 years of military leave Employee must be reinstated to same or equivalent position after completion of military leave Employers may not terminate or threaten to terminate any employee called to military service Special benefit rules apply for military leave Indiana_Regs 3 of 8
6 QUICK VIEW OF STATE EMPLOYMENT REGULATIONS FOR INDIANA Emergency Services Leave Employees who are volunteer firefighters or emergency medical responders may not be penalized for being late to work or for leaving work when responding to a fire or medical emergency call. Paid leave must be provided to employees who are members of mobile support units called to duty for training, exercise or an emergency response/ Discrimination and Harassment Breast Feeding Rights New Hire Reporting Job Reference Liability Smoking in the Workplace Continuation of Benefits Indiana prohibits employers from discriminating based on ancestry or national origin, race or color, religion, military service, age (between 40 and 75), physical or mental disability or sex (including sexual harassment, pregnancy, childbirth, and other pregnancyrelated conditions) Prohibited based on tobacco use during non-working hours Employers with more than 25 employees must provide a private location for an employee to express breast milk. Employers are required to report new hires/rehires within 20 days of such hire/rehire. Employers are generally immune from liability form disclosing truthful information about a current/former employee. Smoking is prohibited in private workplaces and within 8 feet of building entrance. No smoking signs must be posted. Details and contact information are listed below. Indiana_Regs 4 of 8
7 Wage, Hour and Overtime Rules Employers are subject to the federal minimum wage, hour and overtime rules through the Fair Labor Standards Act. This act specifies that businesses that do at least $500,000 in gross revenue, as well as all health care facilities and schools are subject to the federal rules. Also, employers involved in interstate commerce are subject to the federal rules. Minimum Wage Indiana minimum wage is $7.25 per hour. A special minimum wage of $4.25 for the first 90 days of employment may be used for minors under 20 years of age. Employers may pay tipped employees a minimum of $2.13 per hour, provided that the total wages plus tips come to at least the minimum of $7.25 per hour. Be aware that certain local governments in Indiana have a higher minimum wage for employees in their jurisdictions. Be sure to contact your city or county government to see if there are any local minimum wage rules for your business. Employers must post in a conspicuous place in the areas where employees are employed, a single page poster providing employees with notice of the current Indiana minimum wage and an employee's basic rights as well as contact information furnished by the Commissioner of Labor. Finally, both federal and Indiana regulations allow employers to apply for licenses to pay sub-minimum wages to certain disabled persons. Please contact the U.S. Department of Labor or the Indiana Department of Labor for more information on applying for these licenses. (Contact information for both are listed in the reference section below.) Overtime Indiana has the same overtime rules as the federal government. That is, for any hours worked over 40 in a given week, non-exempt employees must be paid at least one and onehalf times their regular pay. Like the federal rules Indiana exempts certain employees from overtime rules. Excluded employee classes include: executive, administrative, professional, outside salespeople and computer professionals. (Use Libretto s FLSA Resource Package for help in determining whether a given employee is exempt). Indiana also permits exemptions for certain small employers not involved in interstate commerce. See the Indiana Department of Labor web site for a list of these exemptions. Payment of Wages Indiana law requires that employees be paid at least semi-monthly, and payment must be made no more than 10 days after the close of that period. Indiana also requires that a terminating employee be paid for any accrued vacation in addition to all wages earned unless the employer policy states otherwise. Final paychecks must be delivered no later than the next payday following termination. Deductions from the final paycheck may not be made without the employee's written consent. Employers may not require employees to be paid electronically. Effective July 1, 2013, a county, municipality or township may not establish, mandate or otherwise require an employer to provide employees with a benefit, term of employment, working condition or attendance or leave policy that exceeds the requirements of federal or state law, rules or regulations with some exceptions. Indiana_Regs 5 of 8
8 Work Hours and Breaks Indiana has no break time rules, except for minors (see below). Child Labor Indiana child labor law requires all employers employing minors between the ages of 14 and 18 to have employment certificates on file (issued by a city or county superintendent of schools). Work permits must include the maximum hours that the minor will be employed. Minors may have more than one work permit, but the issuing agency must make sure that the total hours for all work permits does not exceed the maximum for a minor of the given age (see below). Employers who employ minors less than 16 years of age are subject to strict limits for hours worked per day and per week for their minor employees: When school is in session, children 14 and 15 years of age may work: Up to 3 hours per school day, and Up to 18 hours per school week. When school is NOT in session (including summer vacations, holidays and weekends), children under the age of 16 may NOT work. More than 8 hours per day; nor More than 40 hours per week. Daily hours of work may not be before 7:00 AM or after 7:00 PM except between June 1st and Labor Day when working hours may be extended to 9:00 PM. Minors 16 and 17 years of age may work (if obtaining written parental permission) and for minors at least 17 years of age but less than 18 (parental permission not required) may work: 1. Up to 40 hours during a school week 2. Periods that do not exceed a total of 9 hours in one day and 3. A total of 48 hours in any nonschool week. A child who is at least 16 years of age and less than 17 may not: 4. Work for more than 8 hours in any day 5. Work for more than 30 hours in any week 6. Work for more than 6 days in any week; or 7. Begin a workday before 6:00 AM on a school day. A child who is at least 16 years of age and less than 18 may work until 10:00 PM on nights that are followed by a school day in certain occupations determined by the Commissioner of Labor. Also, children who are 16 years or older and less than 18 may be employed the same daily and weekly hours and at the same times of day as adults if they 1) are a high school graduate; 2) they have completed an approved career and technical education program or special education program; or 3) they are not enrolled in a regular school term. A child who is less than 14 years of age may not be employed or allowed to work in any gainful occupation except as a farm laborer, domestic service worker, caddie or newspaper carrier and a child who is less than 12 years of age may not be permitted to work at farm labor except on a farm operated by the child's parents. Indiana_Regs 6 of 8
9 Both federal and Indiana law prohibits minors from working in hazardous or certain other occupations. Please contact the U.S. Department of Labor or the Indiana Department of Labor for more information on restricted occupations for minor employees. Indiana law also requires that any minor working 6 or more continuous hours in a day be given one or two 30-minute breaks. Employers must document their break policy in writing and communicate such to the employee at the time of hire. Employers must maintain a record of days and hours worked for all employees under the age of 18. Employers must maintain a log documenting the minor's breaks (paid or unpaid) taken. Leaves of Absence Voting Time Indiana has no voting time leave provisions; however Indiana law does prohibit employers from influencing employees in the choice of a particular candidate or ticket. Family Leave Indiana law requires that an employee who has been employed by an employer who employs at least 50 employees for at least 12 months and has worked at least 1,500 hours during the 12 month period immediately preceding the day the leave begins, and who is the spouse, parent, grandparent, child or sibling of a person who is ordered to active duty, is eligible for an unpaid leave of absence for up to ten (10) days, during one or more of the following periods: 1) during the 30-day period prior to deployment; 2) within the 30 day period following termination of active duty orders; and 3) during the period when the person ordered to active duty is on leave. An employee who wants to take such leave, must provide written notice, including a copy of the written duty orders, if available, and must give 30 days' notice. An employee who takes such leave must be restored to the position he/she held before the leave, or a position equivalent, with equivalent pay, seniority, benefits and other terms and conditions of employment. Federal Law requires that employers with 50 or more employees must grant up to 12 weeks of unpaid family medical leave to employees who have completed a year of service or 1250 hours. This leave must be granted for the birth or adoption of a child, serious medical condition of the employee, to care for a family member with a serious medical condition, qualifying exigency for military leave and serious illness/injury of covered service member for military leave. After completion of the leave the employee must be reinstated to the same or an equivalent position (as regards to salary, benefits and seniority). Also, benefits, such as health care coverage and retirement benefits, must be maintained during leave. Jury Duty Employers must provide leave for jury duty or to respond to a subpoena, but need not pay for the leave. Employees may not be required to use any annual, vacation or sick leave when responding to a jury summons. Also, if an employee notifies their employer of their summons for jury duty in a reasonable period in advance of their date for jury duty, employers may not terminate, threaten to terminate or subject employees to any adverse employment action, and employees must be restored to their position within the company as if they had been on furlough. Employees may not require or request employees to use annual vacation or sick leave for time spent responding to jury duty summons. Employees covered by FLSA exemptions serving on a jury must be paid their full salary (minus jury stipend) or risk losing their exemption status. Indiana_Regs 7 of 8
10 Military Leave Indiana employees must be granted up to 15 days of leave in each calendar year for military training, provided that notice is received as soon as practicable prior to the training. This leave may be paid or unpaid, but employees must be restored to the position and seniority upon return from leave. In addition, federal law provides that employees must be granted up to 5 years of military leave for active duty and must be restored to their position (or an equivalent position) within the company as if they had been on furlough upon return. Also, employers may not terminate or threaten to terminate any employee called to military service, Please see Libretto s White Paper on USERRA for more details on military leave. Emergency Services Leave As of July 1, 2005, employees who are volunteer firefighters or emergency medical responders may not be penalized for being late to work or for leaving work when responding to a fire or medical emergency call. The employer may request proof that the employee s absence was due to an emergency response. Also, the employee is required to notify the employer before the scheduled start time of the expected absence or to receive authorization to leave work from his or her supervisor. Employers must grant paid leave to eligible employees who are members of mobile support units called to duty for training, an exercise or an emergency response. Members will typically be mobilized for up to 60 days. Employers must provide eligible employees with compensation and benefits incidental to their employment. Other Employment Regulations Breast Feeding Rights Employers with 25 or more employees must provide reasonable paid breaks and a private location (other than a toilet stall), where an employee can express breast milk during any period away from the employee's assigned duties. Employers are also required, to the extent possible, to provide a refrigerator or other cold storage device for keeping milk that has been expressed, or to allow the employee to provide her own portable cold storage device for keeping milk that has been expressed until the end of the employee's work day. In addition, a woman may breast-feed her child anywhere she has the right to be present. New Hire Reporting Employers are required to report to the state a new hire or rehire's name, address, SSN and first day of work as well as the employer's name, address and FEIN within 20 days of hire/rehire on a federal for W-4 or equivalent. The reports are provided to the Indiana New Hire Reporting Center. Effective July 1, 2013, a newly hired employee is an employee who 1) has not previously worked for an employer or 2) resumes service with an employer after a separation of at least 60 days. Smoking in the Workplace Smoking in private workplaces, and within eight (8) feet of a building entrance is banned, Employers must inform employees and job applicants of the ban. Building owners must post a sign at each public entrance that states: " State Law Prohibits Smoking Within 8 Feet of this Entrance". Owners/operators of a restaurant must post conspicuous sign at each entrance to the restaurant informing the public that smoking is prohibited in the restaurant. Indiana_Regs 8 of 8
11 Job Reference Liability An employer is generally immune from liability for disclosing information about a current/former employee unless the information was known to be false. Upon written request by a prospective employee, the prospective employer must provide copies of any written communications from a current/former employer that may affect the applicant's possibility of employment. Employers are prohibited from blacklisting any discharged employee. Service letters are required in some circumstances detailed by the state. Discrimination and Harassment Indiana prohibits discrimination or harassment based on: Ancestry or national origin Race or color Religion Age (between 40 and 75) Mental or physical disability Military Service Sex (including sexual harassment, pregnancy, childbirth, and other pregnancyrelated conditions), or Use of lawful products during non-working hours (though employers may use financial incentives to encourage employees to quit smoking). Employers with 15 or more employees are also covered by GINA which prohibits discrimination based on genetic testing. Informed consent must be obtained before an individual is tested for AIDS. Employers are prohibited from taking adverse against employees who engage in whistle blowing. Although Indiana does not have a specific statute regarding pregnancy or sexual harassment, employers with 15 or more employees are subject to Title VII of the Civil Rights Act, as amended, which prohibits discrimination based on pregnancy. Although Indiana does not have a state law dealing with sexual orientation, some cities prohibit such discrimination. State Continuation of Benefits Continuation of benefits change frequently. Currently continuation coverage requirements apply to small employer-sponsored group health plans that do not meet federal COBRA requirements. Eligible employees have the right to continue coverage for up to 12 months. The following link provides information about state law: Indiana_Regs 9 of 8
12 Resources/Posters Indiana Department of Labor United States Department of Labor Indiana New Hire Reporting Center Indiana Civil Rights Commission Related Libretto Products FLSA Resource Package (for help in determining overtime exempt / non-exempt status of employees) Overtime Guidelines Break Period Guidelines Family Medical Leave of Absence Policy Military Leave of Absence Policy Jury Duty-Witness Leave Policy Voting Time Policy Prohibited Harassment and Nondiscrimination Policy & Employee Acknowledgement COBRA Continuation Coverage Policy General Notice of COBRA Continuation Coverage Rights COBRA Continuation Coverage Election Information: Notice And Form New Hire Reporting for Indiana Indiana_Regs 10 of 8
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