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Indiana Minimum Wage Law

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in Compensation and Benefits,Human Resources

In conjunction with the recent increase in the federal minimum wage, Indiana hiked its minimum wage from $5.15 to $5.85 per hour (effective July 24, 2007).

Over the next two years, the state minimum wage will increase (along with the federal minimum wage) by 70 cents per hour in two phases: $6.55 per hour as of July 24, 2008, and $7.25 per hour as of July 24, 2009.  

For employees under 20 years of age, employers may continue to pay them a subminimum wage of $4.25 during their first 90 days of employment. After 90 days, you must pay them the minimum wage, $5.85 per hour. Also, you may not displace workers over age 20 to hire those who qualify for this lower training wage.

Employers may continue to pay employees who receive tips as little as $2.13 per hour. However, you must ensure that their pay and tips combined equal the minimum wage.

Indiana’s minimum wage applies to all workers except:

  • Commissioned salespeople.
  • Computer professionals (who must be paid $27.63 per hour).
  • Certain drivers, drivers’ helpers, loaders and mechanics.
  • Employees of seasonal and recreational establishments.
  • Farmworkers.
  • Members of religious organizations.
  • Executive or administrative personnel.
  • Motor carriers, as defined by U.S. Transportation Department regulations.

Record-keeping: Employers must maintain a record of the name, address, occupation, pay rate, hours worked for each day worked and each amount paid to an employee for three years. Company payroll records must specifically note which employees are paid the training wage.

The Indiana Department of Labor ( administers the state minimum wage law.

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