2016 Indiana Minimum Wage
The 2016 Indiana Minimum Wage is $7.25.
Effective 2016-01-01Source: Indiana Minimum Wage Law (Indiana Department of Labor)Verified 2026-09-01
Who it applies to
Employers and employees covered by the Indiana Minimum Wage Law
What changed this year, and why
Indiana's minimum hourly wage rate for 2016
Common questions
- What is the minimum wage in Indiana for 2016?
- The minimum wage in Indiana is $7.25 per hour.
Minors, students and training wages: who may be paid less than the rate on this page
Indiana allows employers to pay a lower hourly rate to young workers who have just been hired. Under the state's training wage rule, an employer may pay $4.25 per hour to an employee who is under 20 years of age, but only for the first 90 consecutive calendar days after the employee is initially employed. After that 90-day period ends, or once the employee turns 20 (whichever comes first), the employer must pay at least the full minimum wage. This is the only category of worker the Indiana Minimum Wage Law names for a reduced rate; it does not create separate subminimum rates for students or for workers in training programs beyond the youth training wage. An employer who wants to pay less than $7.25 to anyone else — for example, a student working a regular job after the training period — must look to the federal Fair Labor Standards Act, which may have its own provisions, rather than relying on Indiana law.
Indiana employers may pay $4.25 per hour to employees under 20 years of age for the first 90 consecutive calendar days after the employee is initially employed by the employer.
Indiana Minimum Wage Law (Indiana Department of Labor)
Overtime is paid at one and one-half times the regular rate
Indiana's overtime rule requires employers to pay covered employees at a rate of one and one-half times their regular rate of pay for any hours worked beyond 40 in a single workweek. The statute calls this extra amount "overtime compensation." For example, a worker in Indiana who earns the minimum wage and works more than 40 hours in a week must receive at least one and one-half times that regular rate for each hour over 40. Indiana's law lists many exceptions to the overtime requirement, most of them found at Indiana Code § 22-2-2-3 (a) through (p), so not every job qualifies. Workers who believe they are owed overtime should check whether their occupation falls into one of those exceptions and, if not, should contact the Indiana Department of Labor's Wage and Hour Division.
The Indiana Minimum Wage Law generally requires employers to pay employees at least the minimum wage for all hours worked and to pay employees 1 ½ times their regular rate of pay (“Overtime compensation”) when employees work more than forty (40) hours during a work week.
Indiana Minimum Wage Law (Indiana Department of Labor)
Who to ask about this rate, and where to take a wage complaint
Workers in Indiana who have questions about the state minimum wage, overtime rules, or wage deductions — or who believe their employer has violated the Indiana Minimum Wage Law — should contact the Indiana Department of Labor's Wage and Hour Division. The division can be reached by email at wagehour@dol.in.gov or by telephone at (317) 232-2655, and its office is located at 402 West Washington Street, Room W195, Indianapolis, Indiana 46204. Indiana law provides for both civil and criminal penalties for violations of the Indiana Minimum Wage Law, so workers who have not been paid the required wages or who have not received the written statement of hours, wages, and deductions that Indiana employers must furnish should not hesitate to file a complaint with this office.
For additional information, please contact the Indiana Department of Labor’s Wage and Hour Division by email at wagehour@dol.in.gov or phone (317) 232-2655. 402 West Washington Street, Room W195 • Indianapolis, Indiana 46204
Indiana Minimum Wage Law (Indiana Department of Labor)
State minimum wage laws that give more than the federal rate
Indiana's minimum wage law works alongside the federal Fair Labor Standards Act. Most Indiana employers and employees are covered by the federal law's minimum wage and overtime provisions; however, those not covered under federal law may still be covered by the Indiana Minimum Wage Law. In Indiana, both the federal and state minimum wage rates are the same, at $7.25 per hour. This means that whether a worker is covered by federal law or state law, the minimum they must be paid is the same amount. When both laws apply to a worker, the provision that gives the employee greater protection governs, but since Indiana's rate matches the federal rate, the result is the same either way.
Most Indiana employers and employees are covered by the minimum wage and overtime provisions of the federal Fair Labor Standards Act (FLSA); however those not covered under federal law may still be covered by the Indiana Minimum Wage Law.
Indiana Minimum Wage Law (Indiana Department of Labor)
When tips, meals or lodging count toward the minimum wage
Indiana lets employers count an employee's tips toward the minimum wage, using a "tip credit." When a worker regularly receives tips, the employer may pay a cash wage as low as $2.13 per hour instead of the full minimum wage, but only if the employer claims the tip credit. The law requires that the employee's tips, added to the $2.13 cash wage, must equal at least the full minimum wage for every hour worked. If they do not, the employer must make up the difference out of its own funds. The state poster does not address credits for meals or lodging, so an Indiana worker whose employer wants to count free meals or housing toward the minimum wage should ask the Wage and Hour Division whether the arrangement is allowed. The same $7.25 floor still applies: only the way it is made up — cash, tips, or both — changes.
Generally, employers must pay tipped employees at least $2.13 per hour if the employer claims a tip credit. If the employee’s tips combined with the hourly wage do not equal the minimum wage, the employer must make up the difference.
Indiana Minimum Wage Law (Indiana Department of Labor)
What an employer may deduct from your pay
Indiana law requires every employer subject to the Indiana Minimum Wage Law to furnish each employee with a written statement showing the hours worked by the employee, the wages paid to the employee, and a listing of the deductions made from the employee's pay. This statement gives Indiana workers a record of what was taken out of their paycheck and allows them to verify that their employer has complied with wage laws, including the requirement to pay at least the minimum wage after all deductions are taken. While the Indiana Minimum Wage Law mandates that deductions be disclosed, workers who believe deductions have reduced their pay below the minimum wage should contact the Indiana Department of Labor's Wage and Hour Division for assistance.
Indiana law requires every employer subject to the Indiana Minimum Wage Law to furnish each employee a state- ment of the hours worked by the employee, the wages paid to the employee, and a listing of the deductions made.
Indiana Minimum Wage Law (Indiana Department of Labor)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
Indiana Minimum Wage Law (Indiana Department of Labor)
- Hourly
Indiana Minimum Wage Law $7.25 per hour
Other years
Every Indiana Minimum Wage year · Minimum Wage in every state