Under Indiana overtime laws you earn after 40 hours in a workweek at 1.5 times the regular rate, and no daily overtime in Indiana — only the weekly total counts. The minimum wage is $7.25 (employers of 2 or more). This guide gives the exact indiana overtime laws rule with the date we verified it, the statute, and what to do next.
Rules verified against Indiana Department of Labor, Wage and Hour Division on 2026-10-08; confirm the current rule with Indiana Department of Labor, Wage and Hour Division or an attorney before you rely on it.
Indiana Overtime Laws at a Glance
| Minimum wage | $7.25 (employers of 2 or more) |
| Weekly overtime | After 40 hours in a workweek at 1.5 times the regular rate |
| Daily overtime | No daily overtime in Indiana — only the weekly total counts |
| Rate | 1.5 times the regular rate (double time only where the row says so) |
| State overtime statute | Yes |
In This Indiana Overtime Laws Guide:
Indiana Overtime Laws: The Rules
After 40 hours in a workweek at 1.5 times the regular rate. No daily overtime in Indiana — only the weekly total counts. The overtime rate is one and a half times your regular rate of pay — the regular rate includes non-discretionary bonuses and shift differentials, not just the base wage.
How to Calculate Overtime Under Indiana Overtime Laws
Take your total pay for the week, divide by the hours you worked to get the regular rate, and multiply the overtime hours by 1.5 times that rate. A worker paid $7.25 an hour who works 48 hours in a 40-hour state is owed 8 hours at time and a half.
Salary does not mean exempt: a salaried worker below the exemption tests still gets overtime on the hours over the threshold.
Indiana Overtime Laws at a Glance
Rules verified against Indiana Department of Labor, Wage and Hour Division on 2026-10-08; confirm the current rule with Indiana Department of Labor, Wage and Hour Division or an attorney before you rely on it. The statute row is where to check it yourself.
| Minimum wage | $7.25 (employers of 2 or more) |
| Weekly overtime | After 40 hours in a workweek at 1.5 times the regular rate |
| Daily overtime | No daily overtime in Indiana — only the weekly total counts |
| Rate | 1.5 times the regular rate (double time only where the row says so) |
| State overtime statute | Yes |
Who Is Exempt From Indiana Overtime Laws
Indiana generally follows the federal exemptions. Salaried executives, administrators and professionals (including some computer workers) are usually exempt, and so are outside salespeople. Most of these jobs are exempt only if they pass both a duties test and the federal minimum salary test, and outside sales has no salary test. Indiana does not set a higher state salary threshold of its own.
Daily Overtime and Indiana Overtime Laws
Indiana has no daily overtime rule: a 12-hour day in a 36-hour week earns no premium, because only the weekly total counts. Private employers covered by the federal law generally may not give comp time instead of overtime pay. Only public agencies may use comp time, and only under set conditions.
If you work for a small private employer covered only by Indiana law, confirm with the Indiana Department of Labor before accepting comp time instead of pay.
Is Overtime Taxed Differently Under Indiana Overtime Laws?
No — overtime is ordinary wages and is taxed at the same income-tax rates as the rest of your pay; it can push more of your pay into a higher withholding bracket on one check, but the annual tax rate does not change. Indiana allows a tip credit, but overtime for tipped workers is figured on the full minimum wage, not on the lower cash wage.
Your employer generally owes 1.5 times the full minimum wage, minus the same tip credit used for regular hours. Tips themselves do not count toward the overtime premium.
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How to Claim Unpaid Overtime Under Indiana Overtime Laws
Most Indiana employers are covered by the federal Fair Labor Standards Act, so most workers file an unpaid overtime complaint with the U.S. Department of Labor’s Wage and Hour Division.
If your employer is a small business that the federal law does not cover, you can ask the Indiana Department of Labor’s Wage and Hour Division to investigate using the Application for Wage Claim (State Form 2069) and checking “Non-Payment of Overtime.” Both routes count back from the date the work was done, and willful federal violations allow a longer look-back.
Confirm the deadline for your claim with the agency soon, because older weeks drop out over time.
Other Indiana Overtime Laws Rules to Know
Indiana’s own overtime rule (IC 22-2-2-4) mainly protects workers at small employers that the federal Fair Labor Standards Act does not cover. It requires those employers to pay 1.5 times the regular rate for hours over 40 in a workweek. It applies only to employers with at least 2 employees, and IC 22-2-2-3 lists many exceptions. Filing with the state does not stop you from suing your employer directly.
Think you are owed overtime? The wage-claim agency takes the complaint for free.
Indiana — the bottom line
- Indiana overtime laws start the premium after 40 hours in a workweek at 1.5 times the regular rate — count the week, not the day.
- Under indiana overtime laws the rate is 1.5 times the regular rate, and the regular rate includes your bonuses and differentials.
- Indiana overtime laws are enforced by a free wage claim — you do not need a lawyer to recover unpaid overtime.
Frequently Asked Questions
When do I get overtime under Indiana overtime laws?
After 40 hours in a workweek at 1.5 times the regular rate. No daily overtime in Indiana — only the weekly total counts.
What is the overtime rate in Indiana?
One and a half times your regular rate of pay, which includes non-discretionary bonuses and shift pay.
Does Indiana have daily overtime?
No daily overtime in indiana — only the weekly total counts.
Can my employer give comp time instead of overtime pay in Indiana?
Private employers covered by the federal law generally may not give comp time instead of overtime pay. Only public agencies may use comp time, and only under set conditions.
How do I claim unpaid overtime in Indiana?
Most Indiana employers are covered by the federal Fair Labor Standards Act, so most workers file an unpaid overtime complaint with the U.S. Department of Labor’s Wage and Hour Division.
Official Indiana Sources & Resources
- Indiana Department of Labor, Wage and Hour Division: https://www.in.gov/dol/wage-and-hour/
- Indiana statute: https://iga.in.gov/laws/2025/ic/titles/22
- Verified source: https://www.dol.gov/agencies/whd/minimum-wage/state
- U.S. Department of Labor, Wage and Hour Division — state payday requirements: dol.gov
This indiana overtime laws guide was last verified against official Indiana sources in October 2026. Rules change — confirm the current figure with the state agency or a licensed attorney.
More Indiana Workplace Rights Guides
- Indiana Break Laws: Meal and Rest Breaks
- Indiana Final Paycheck Law: Deadlines and Penalties
- Indiana Labor Laws: Every Rule in One Place
- Indiana Unemployment Benefits: How Much and How Long
- Unemployment and Workplace Rights Guides for All 50 States
Disclaimer: This guide is general information, not legal or financial advice. My Unemployment Rights is an independent educational resource, not a government agency and not a law firm. Final-paycheck deadlines, penalties and non compete rules change — every figure here carries the date we verified it. Confirm the current rule with your state labor department or a licensed attorney before you act.