The rule in Indiana
In Indiana, hours over 40 in a workweek are paid at 1.5 times your regular rate. There is no general daily limit, so a 12-hour day inside a 36-hour week earns no overtime.
The US Department of Labor's state table adds: “Applies to employers of 2 or more employees.”
What counts toward your regular rate
Overtime is 1.5 times your regular rate of pay: everything you earned for the week at straight time, divided by every hour you worked.
Counts
- Your hourly pay for every hour worked, at each rate you worked
- Non-discretionary bonuses — attendance, production, safety, or any bonus promised in advance
- Commissions
- Shift differentials for nights, weekends or hazardous work
Does not count
- Discretionary bonuses and gifts, where both the fact and the amount were up to the employer
- Expense reimbursements
- Pay for time not worked: vacation, holidays, sick days
A worked example
Common mistakes employers make in Indiana
- Assuming the state law is the one that covers the workplace. Indiana's reaches employers with two or more employees and stops where the federal law applies, so most Indiana workers are protected federally instead.
- Promising a lunch break as a legal right. Indiana requires no meal or rest break for adults, and since 2020 that holds for workers under 18 as well.
- Leaving the pay stub out. An employer covered by Indiana's minimum wage law must give each employee a statement of the hours worked, the wages paid and the deductions made.
Other Indiana pay rules worth knowing
- Final paycheck if fired: By your next regularly scheduled payday. The date depends on your pay schedule, not on when you were let go.
- Unused PTO: No Indiana statute requires a vacation payout, but the state labor department accepts wage claims for accrued vacation and shows how to work one out. It will not take claims for holiday pay, sick pay, reimbursements, severance or bonuses.
- Late final pay: Since 1 July 2015, an employer that pays late owes the wages due, a reasonable fee for your attorney and court costs; if a court finds the failure to pay was not in good faith, it must order twice the wages as liquidated damages (Indiana Department of Labor).
Indiana final paycheck law and deadline calculator →
Indiana overtime: common questions
Does my employer have to pay overtime if they didn't approve it?
Yes. Time your employer knew you were working, or allowed you to work, counts as hours worked, whether or not anyone approved it in advance. An employer can discipline you for breaking an overtime policy, but it still has to pay overtime for those hours — in Indiana as everywhere else under federal law.
Does my bonus change my overtime rate?
Yes, if the bonus is non-discretionary — promised for attendance, production, safety or hitting a target. It is added to your straight-time pay and divided by all the hours you worked, and your overtime is 1.5 times that higher rate. Discretionary gifts, expense reimbursements and paid time off are left out.
Does Indiana have its own overtime law?
Yes. The Indiana wage law requires time and a half after 40 hours in a workweek — the same threshold as the federal Fair Labor Standards Act, with no daily rule. Where both laws apply you get whichever is more generous, so in practice the 40-hour weekly rule governs. Applies to employers of 2 or more employees.
What is a workweek, and can my employer change it?
A workweek is a fixed, recurring block of seven consecutive 24-hour days, and it can start on any day and at any hour. Overtime is counted per workweek, never averaged across two, even when you are paid every two weeks. Your employer can change the start day, but only permanently and not to avoid paying overtime.
If you think you were underpaid
- Keep your own record of the hours you worked — the time card calculator totals them and exports a CSV — plus photos of the posted schedule and messages about shifts.
- Ask your employer in writing to correct the pay. Email beats a conversation because it creates a dated record.
- File a wage claim — File an online wage claim with the Indiana Department of Labor, Wage and Hour Division. Some disputes take up to 90 days, and Indiana gives no job protection for filing against a current employer. It is free, and you do not need a lawyer.
- Federal overtime claims must generally be brought within 2 years of the underpayment, or 3 years if the violation was willful.
Spotted something wrong? Report an error.
Other states that also follow the 40-hour weekly rule with nothing added: Alabama, Arizona and Delaware.
Work across a state line? Illinois overtime rules and Kentucky overtime rules.