2020 Indiana Minimum Wage
The 2020 Indiana Minimum Wage is $7.25.
Effective 2020-01-01Source: Indiana Minimum Wage Law (Indiana Department of Labor)Verified 2026-09-01
Compared with 2019
Every figure on this page is unchanged from 2019.
| Item | 2019 | 2020 | Change |
|---|---|---|---|
| Hourly | $7.25 | $7.25 | +$0 (+0.0%) |
Who it applies to
Most employers and employees in Indiana covered by the Indiana Minimum Wage Law or the federal Fair Labor Standards Act.
What changed this year, and why
Indiana's minimum wage rate for 2020 is $7.25 per hour, consistent with the federal minimum wage.
Common questions
- How does Indiana's minimum wage compare to the federal minimum wage?
- Indiana's minimum wage for 2020 is $7.25 per hour. This matches the federal minimum wage under the Fair Labor Standards Act.
- Are there special minimum wage rates for tipped employees or young workers?
- Yes. Indiana law provides for a lower hourly rate for tipped employees when the employer claims a tip credit, and a training wage for employees under 20 years of age during their first period of employment. The source document from the Indiana Department of Labor provides details on these special rates.
Minors, students and training wages: who may be paid less than the rate on this page
Indiana allows employers to pay a training wage of $4.25 per hour to employees who are under 20 years of age. This subminimum rate applies only during the first 90 consecutive calendar days after the employee is initially hired. After that 90-day period ends, or when the employee reaches age 20 (whichever comes first), the employer must pay the full minimum wage of $7.25 per hour. This provision is designed to encourage employers to hire young workers by allowing them time to train new employees at a lower cost. Workers in Indiana who are 20 or older, or who have been with the same employer for more than 90 days, cannot be paid this reduced training wage and must receive at least the standard minimum wage for all hours worked.
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
Under Indiana law, employers must pay overtime compensation at a rate of one and one-half times an employee's regular rate of pay for all hours worked beyond 40 in a single work week. This means that if an employee in Indiana earns the regular minimum wage of $7.25 per hour, their overtime rate would be one and one-half times that amount for each hour over 40 in the work week. The law recognizes numerous exceptions to this overtime requirement, which are detailed in Indiana Code § 22-2-2-3 (a) through (p). Workers in Indiana should be aware that certain job categories may be exempt from overtime pay, but for most non-exempt employees, any time worked past the 40-hour threshold in a work week must be compensated at this premium rate.
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
Under Indiana law, employees with questions about minimum wage or overtime rights, or those who need to file a wage complaint, 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 phone at (317) 232-2655. Indiana law provides for both civil and criminal penalties against employers who violate the Indiana Minimum Wage Law, so workers who believe they are not being paid the required $7.25 per hour or proper overtime can bring their concerns to this state agency for investigation and enforcement.
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.
Indiana Minimum Wage Law (Indiana Department of Labor)
When tips, meals or lodging count toward the minimum wage
Indiana law allows employers to pay tipped employees a direct hourly wage of $2.13 per hour, rather than the full minimum wage of $7.25 per hour, as long as the employer claims a tip credit. The tip credit works by counting the employee's tips toward the minimum wage obligation. However, if an employee's tips combined with the $2.13 hourly wage do not add up to at least the minimum wage for that pay period, the employer must make up the difference. This means tipped workers in Indiana are always entitled to receive at least the full minimum wage once tips and the direct wage are combined, and the employer bears the responsibility of ensuring that floor is met every pay period.
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)
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