Overtime Laws in Indiana

For 2025, Indiana continues to follow the federal Fair Labor Standards Act (FLSA) for overtime laws and does not have any state-specific legislation altering these requirements. A significant development affecting salaried employees occurred in late 2024 when the federal court decided to vacate the planned increase to the overtime salary exemption threshold, reverting it to its 2019 level. 

Overview of Indiana Overtime Laws 2026

As mentioned above, Indiana mirrors the federal overtime laws. As a result, all state employers must pay non-exempt employees overtime wages at a rate of 1.5X their regular rate for all hours worked beyond 40 per week. 

The state does not require employers to pay daily overtime or premium pay if employees work on weekends or holidays. All overtime calculations must be based strictly on the 40-hour weekly threshold set under federal law.  

Key points:

• Overtime rate: 1.5X the employee’s regular hourly rate.
• Weekly overtime: Applies after 40 hours in a workweek.
• Daily overtime: No daily overtime requirement under state law.
• Exemptions: Executive, administrative, professional, and outside sales employees are exempt under federal and state rules.
• Recordkeeping: Employers must maintain accurate records of hours worked and wages paid to ensure compliance.

The table below provides key updates impacting overtime and wages in Indiana for 2026:

Eligibility for Overtime in Indiana

All employees working in Indiana are categorized as exempt or non-exempt, typically based on their salary. 

• Non-exempt employees: Those who work on an hourly basis or receive a salary that does not meet the state/federal set salary threshold. They’re entitled to receive overtime pay if they work beyond 40 hours per workweek. 
• Exempt employees: Those who are usually classified as “white collar” workers. They include executive, administrators, and professional employees who earn above the federal-set salary threshold or meet the duties test. Other exemptions include outside sales roles, IT professionals, and agricultural workers. 

Federal vs. Indiana Overtime Rules

When it comes to overtime laws, Indiana follows the federal FLSA. This means that if an employee works 9 hours daily at $20/hour, under both federal and state law, they will earn regular pay for 40 hours ($800) and overtime pay for 5 hours at 1.5X their rate ($150), totaling their weekly earning to $950.

Neither Indiana has a daily overtime requirement, nor does it provide additional state-specific overtime benefits beyond federal law.

The table below compares federal vs state overtime rules. 

Exemptions in Indiana

Adhering to the federal FLSA, the following employees are exempt from receiving overtime pay in Indiana. 

• Executive Employees: Individuals who manage a department or enterprise, supervise at least two full-time employees, have hiring/firing authority, and earn at least $684 weekly ($35,568 annually) qualify as exempt under the FLSA.
  
• Administrative Employees: Workers performing office/non-manual work directly related to business operations or management policies who exercise independent judgment on matters of significance and meet the minimum salary threshold are classified as exempt.
  
• Professional Employees: Individuals whose work requires advanced knowledge in specialized fields (law, medicine, accounting, engineering, science) obtained through prolonged specialized intellectual instruction, or those performing original creative work in recognized artistic fields and meeting salary requirements are exempt from overtime.
  
• Computer/IT Professionals: Employees performing systems analysis, programming, software engineering, software development, or IT management who earn at least $684 weekly or $27.63 hourly are exempt.
  
• Outside Salespersons: Employees who primarily conduct sales away from an employer’s premises qualify for the outside sales exemption; outside salesmen do not need to meet salary thresholds to qualify.​
  
• Agricultural Workers: Employees engaged in farming, crop production, livestock management, and related agricultural activities are exempt from Indiana overtime requirements.
  
• Indiana Follows Federal FLSA Standards: Indiana enforces federal FLSA exemptions without state-level modifications; the November 2024 federal court ruling maintains the $684 weekly salary threshold for exempt classification, and employers can require mandatory overtime as long as no employment contract or collective bargaining agreement prohibits it. Non-exempt employees working over 40 hours weekly receive 1.5 times their regular rate.

Employer Obligations and Employee Rights

• Timely pay and statements: Employers must make regular wage payments on scheduled dates and provide a thorough statement of hours worked and wages paid, as required by the state law.
• Recordkeeping and compliance: Employers must maintain accurate time and pay records, ensure proper wage calculations, and adhere to federal laws for “hours worked” determinations.
• Enforcement and assistance: Employees can register complaints on the Indiana Department of Labor and the U.S. Department of Labor website in case of non-payment of wages or overtime pay.  
• Public sector policies: Indiana State Personnel Department guidance outlines hours of work, overtime, holiday pay, and comp‑time practices that employers must follow.