Indiana enforces the federal $7.25 minimum wage statewide.
Indiana law mandates the federal minimum wage of $7.25 per hour as the state standard. Crucially, Ind. Code section 22-2-2-10.5 preempts and blocks any attempt by cities or local governments to establish their own, higher minimum wage rates, ensuring a uniform wage floor across the entire state.
Indiana Minimum Wage
Ensures all non-exempt employees are paid at least the federal minimum wage of $7.25/hour, enforced statewide.
What these rules do as an Indiana shift is created.
When an Indiana shift is logged in Teambridge, our system instantaneously checks the applicable minimum wage rate. This ensures compliance from the first clock-in, preventing underpayments and automatically adjusting for tipped employees.
Blocking Sub-Minimum Payments
Any proposed payment below $7.25 per hour for non-tipped work is immediately flagged and prevented. This ensures every hour worked meets the state's minimum wage requirement.
Tipped Wage Validation
For tipped employees, the system verifies that the $2.13 per hour direct wage, combined with reported tips, meets or exceeds the $7.25 federal floor, factoring in the $30/month tip threshold.
Local Ordinance Preemption
Teambridge automatically disregards any locally entered minimum wage rates that exceed the federal $7.25, in adherence to Ind. Code § 22-2-2-10.5, ensuring statewide uniformity.
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Indiana aligns with the federal minimum wage and preempts local mandates.
Indiana law explicitly adopts the federal minimum wage rate of $7.25 per hour. This rate applies statewide to all non-exempt employees. Furthermore, Indiana Code section 22-2-2-10.5 prevents any political subdivision from enacting or enforcing a minimum wage rate that differs from the state-mandated (federal) rate, thereby ensuring a consistent wage standard across all Indiana jurisdictions.
Indiana Code § 22-2-2-4: Minimum wage
"Every employer employing four or more employees at any one time, other than those exempted by section 3 of this chapter, shall pay to each such employee wages at a rate of not less than the federal minimum wage provided by the Fair Labor Standards Act of 1938, as amended (29 U.S.C. 201 et seq.)."
Indiana Code § 22-2-2-10.5: Local minimum wage ordinances prohibited
"A political subdivision may not establish a minimum wage that differs from the minimum wage established under this chapter."
Standard Minimum Wage
The standard minimum wage in Indiana for non-exempt employees is $7.25 per hour. This rate mirrors the federal minimum wage, as Indiana law directly references and adopts the federal standard. Employers must ensure that all hours worked by non-exempt employees are compensated at no less than this rate.
Tipped Minimum Wage
For employees who regularly receive tips, Indiana follows the federal standard, allowing a direct cash wage of $2.13 per hour. However, employers must ensure that the employee's direct wages combined with tips received total at least $7.25 per hour for all hours worked. If the combined amount falls short, the employer must make up the difference. A "tipped employee" is generally defined as one who customarily and regularly receives more than $30 per month in tips.
Teambridge ensures Indiana wage compliance from clock-in to payroll.
With Teambridge, Indiana's minimum wage rules are not just static policies; they are active, intelligent components of your payroll system. Our platform automatically applies the correct minimum wage rate, validates tipped earnings, and enforces state preemption, all without manual intervention.
Instant Wage Validation
As soon as a shift is created or edited, Teambridge checks the scheduled pay rate against the $7.25 minimum wage. Any attempt to set a rate below this floor for non-tipped work is immediately flagged and corrected.
Real-time Tipped Wage Reconciliation
For tipped employees, upon clock-out, the system calculates the effective hourly rate based on direct wage plus reported tips. If this combined rate falls below $7.25, Teambridge automatically adjusts the employer's contribution to meet the minimum wage requirement.
Guaranteed Compliance
Before payroll is finalized, Teambridge performs a comprehensive audit, ensuring every employee's total compensation adheres to the $7.25 statewide minimum, and that no local ordinances are incorrectly applied due to state preemption.
Always Current
Teambridge continuously monitors legislative changes. Should Indiana's minimum wage laws or federal references change, our system updates automatically, ensuring your compliance is always current without any manual configuration on your part.