Indiana tracks the federal $684/week salary threshold for FLSA exempt employees.
In Indiana, the classification of employees as exempt from overtime and minimum wage requirements under the Fair Labor Standards Act (FLSA) is directly tied to federal regulations. This means employees must meet both a salary basis test—earning at least $684 per week—and a duties test to qualify. Indiana does not impose a separate state salary threshold, simplifying compliance by aligning with federal standards.
FLSA $684/wk Exempt Classification
Validates exempt against $684/week federal salary basis + duties test. IN tracks federal threshold without state modification.
What these rules do as an Indiana shift is created.
Teambridge continuously assesses employee classifications against Indiana's adoption of the federal FLSA exempt salary and duties tests. This proactive validation ensures that employees are correctly categorized, mitigating the risk of misclassification penalties and ensuring proper wage and hour compliance.
Block misclassification
If an employee designated as exempt does not meet the $684/week salary threshold, Teambridge will flag the classification as invalid and prevent the system from processing them as exempt. This ensures all non-exempt employees receive appropriate overtime.
Flag potential issues
When an employee's job duties are borderline or change, Teambridge can flag their exempt status for review, prompting an administrator to re-evaluate against the FLSA duties tests, even if the salary threshold is met.
Avoid back pay liability
By continuously validating exempt status, Teambridge helps employers avoid costly back pay claims and penalties that can arise from misclassifying employees and failing to pay overtime.
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Indiana aligns with federal FLSA for exempt employee classification.
Indiana employers must comply with the federal Fair Labor Standards Act (FLSA) requirements to classify employees as exempt from minimum wage and overtime pay. This requires meeting both a salary basis test and a duties test. Indiana does not have a separate state-specific salary threshold or duties test that differs from the federal standard.
Fair Labor Standards Act (FLSA) 29 U.S.C. § 201 et seq.
The FLSA establishes minimum wage, overtime pay, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in Federal, State, and local governments. Certain employees, including executive, administrative, and professional employees, are exempt from the FLSA's overtime and minimum wage requirements if they meet certain tests regarding their job duties and are paid on a salary basis at not less than a specified amount.
Salary Basis Test
To be considered exempt, an employee must generally be paid on a salary basis of not less than $684 per week (as of January 1, 2020, for most employees, with higher thresholds for highly compensated employees). This salary must be paid in full for any week in which the employee performs any work, regardless of the number of days or hours worked. Deductions from salary are permitted only in very specific circumstances outlined by the FLSA.
Duties Test
In addition to the salary basis test, an employee's primary job duties must meet specific criteria for one of the recognized exemptions (e.g., executive, administrative, professional, computer, or outside sales employees). These duties tests are detailed in federal regulations (29 CFR Part 541) and require a qualitative assessment of the employee's responsibilities, discretion, and independence. Indiana employers must ensure their exempt classifications satisfy these federal duties tests.
Teambridge ensures your Indiana exempt classifications are always compliant.
Teambridge integrates the federal FLSA exempt classification rules into your payroll and HR processes, ensuring that every employee's status is continuously validated against the current salary threshold and duties criteria. This eliminates manual checks and reduces the risk of costly misclassification errors.
Configure exempt roles
During initial setup, you define job roles and their intended FLSA classification. Teambridge prompts for salary information and key duty indicators to pre-validate potential exempt status.
Automatic salary validation
When onboarding a new employee designated as exempt, Teambridge automatically checks if their proposed salary meets the federal $684/week threshold. If not, it flags the discrepancy, preventing incorrect classification from the start.
Continuous compliance monitoring
Teambridge continuously monitors for changes to federal FLSA regulations, automatically updating the salary threshold. If an employee's salary falls below a new threshold, the system alerts you to adjust compensation or reclassify.
Detailed audit trails
All classification decisions and changes are meticulously logged, providing a clear, defensible audit trail for any Department of Labor inquiries or internal reviews, demonstrating due diligence in compliance.
People also ask.
What is the current salary threshold for FLSA exempt employees in Indiana?
As of January 1, 2020, the federal salary threshold for most FLSA exempt employees (executive, administrative, and professional) is $684 per week, or $35,568 annually. Indiana follows this federal standard without any state-specific modification.
Does Indiana have its own state-specific exempt employee regulations?
No, Indiana does not have separate state-specific regulations for exempt employee classification that differ from the federal Fair Labor Standards Act (FLSA). Employers in Indiana must comply with the federal FLSA's salary basis and duties tests.
What are the consequences of misclassifying an employee as exempt in Indiana?
Misclassifying an employee as exempt can lead to significant penalties, including liability for unpaid overtime wages, liquidated damages (often double the unpaid wages), attorney's fees, and civil penalties. These liabilities can accrue under both federal and state law, even if Indiana follows federal standards.
Are highly compensated employees (HCEs) treated differently in Indiana?
Indiana follows the federal FLSA rules for Highly Compensated Employees (HCEs). As of January 1, 2020, HCEs must earn at least $107,432 per year (including at least $684 per week paid on a salary basis) and primarily perform office or non-manual work, customarily and regularly performing at least one of the exempt duties of an executive, administrative, or professional employee.
Does the duties test apply to all exempt classifications?
Yes, in addition to meeting the salary basis test, all employees classified as exempt under the executive, administrative, professional, computer, or outside sales exemptions must satisfy the specific duties test associated with their respective exemption. These tests define the primary responsibilities and level of discretion required for the role.
Can an employer make deductions from an exempt employee's salary?
Deductions from an exempt employee's salary are generally prohibited, with very limited exceptions defined by the FLSA. Impermissible deductions can result in the loss of the employee's exempt status, making them eligible for overtime pay for the periods affected. Permitted deductions include those for absences of a full day for personal reasons, sickness or disability (under a bona fide plan), or penalties for workplace rule infractions.