Door Hero

Indiana Minimum Wage: A Survival Guide

Changes in the Minimum Wage laws on a federal level has increasingly become an contentious issue for small business owners, and employees.

These changes can be far-reaching, and have unforeseen consequences.

It is therefore prudent as a Small Business owner in Indiana, that you keep abreast of the looming changes, as it can have a major effect on your bottom line.

We have created a tough, survival guide for those who are most affected by a change in the minimum wage laws in Indiana.

What is the minimum wage in Indiana?

The minimum wage in Indiana is $7.25 an hour, the same as the federal minimum wage. Employers that have two or more employees must follow this minimum wage.

Some employees who are exempt from this minimum wage include:

  • Tipped employees must be paid a cash minimum of $2.13 per hour, with a $5.12 tip credit to earn $7.25 an hour (including tips).
  • A special training minimum wage of $4.25 per hour can be paid to workers under 20 years of age for the first 90 days of employment.
  • Full-time high school and college students can be paid 85 percent of Indiana minimum wage ($6.16) if they are participating in a work-study program or working 20 or fewer hours per week.

The minimum wage was last changed in 2008, when it was raised by $0.60.

How is Indiana’s minimum wage changing in the future?

Currently there’s a bill with the Indiana General Assembly that would increase the statewide minimum wage. If passed, the bill will raise the minimum wage from $7.25 an hour to $10 an hour starting June 30, 2019. It would increase again to $15 by 2021.

Have something to add? Share it in the comments.

Your email address will not be published. Required fields are marked *