Nobody ever said running a business was a walk in the park. As an employer, you have a lot of balls in the air, and compliance is just one of them. One really, really important one that, if dropped, could cost you a whole lot of money.
In addition to federal regulations, each state has their own share of employment laws that business owners need to be aware of. Here, we’re highlighting some of these key state-specific requirements and laws, and offering guidance to help you keep up.
Bear in mind, this list is not comprehensive, and there may be local or industry-specific employment requirements that your business needs to comply with. It’s best to consult with counsel to ensure compliance with all applicable laws, as Justworks does not provide legal advice.
Payroll Tax Accounts
Because Justworks reports state unemployment taxes on behalf of customers who utilize Justworks’ PEO services, employers will need to close their Indiana unemployment and withholding accounts prior to joining the Justworks platform. Linked here are the steps you’ll need to take: Indiana - State Unemployment Insurance.
Recruiting & Hiring Practices
Indiana law prohibits discrimination based on a person’s expunged arrest or conviction record. Private employers in Indiana may not ask about such information during the hiring process and may only inquire about conviction information in a manner that clearly excludes expunged convictions or arrests.
When classifying workers as employees or independent contractors, there are a few things to consider, including the different tests that apply under different federal and state employment laws, and potential penalties and other liabilities for misclassifying employees as independent contractors. Certain state laws apply tests that are more stringent than the guidance provided by federal agencies, such as the IRS and Department of Labor, to apply in conjunction with federal laws.
You can read our general Help Center article on contractors, and view information on how to determine if someone is a contractor or employee in Indiana in the relevant section at the links below.
Indiana Business Owner’s Guide: Business Owner's Guide - Assistance
Indiana Unemployment Insurance: Misclassified Worker
Indiana Workers Compensation Board: Independent Contractors
Mineral: Indiana Independent Contractors*
Minimum Pay & Overtime Requirements
The hourly minimum wage and overtime requirements in Indiana are currently the same as the Federal minimum wage and overtime requirements. Indiana employers can find the most up-to-date minimum wage requirements from the Indiana Department of Labor (DOL).
Meal & Rest Breaks
Private employers in Indiana are generally not required to provide meal and rest breaks to employees ages 18 and over.
Private employers with 25 or more employees must provide employees reasonable and private opportunities to express milk. This may include a private place other than a bathroom stall during the work day.
Indiana State Department of Health: Breastfeeding
Harassment and Discrimination
In addition to protections under Federal law, Indiana law prohibits employment discrimination based on membership in any protected class by employers covered under Indiana’s anti-discrimination laws.
To provide additional support in this area, Justworks has teamed up with EVERFI to offer customers free access to a suite of harassment prevention and inclusion trainings.
Indiana employers should familiarize themselves with specific compliance requirements for separating employees.
Regardless of whether an employee quits or is discharged, the employee must receive their final wages on or before their next regularly scheduled payday.
If an employee has a balance of unused, accrued vacation time upon separation, such benefit is generally considered compensation that must be paid out along with their final wages.
Indiana DOL: Wage & Hour FAQs
Business Closings and Layoffs
The Federal WARN Act imposes certain notice and other obligations on covered businesses before conducting large-scale business closures, layoffs, or relocations. In Indiana, employers who may be required to file notice should do so with the state’s Department of Workforce Development. For more information, visit the links below.
U.S. Department of Labor: Worker Adjustment and Retraining Notification (WARN) Act Advisor
Indiana Department of Workforce Development: WARN Notices
Mineral: Indiana Layoffs*
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This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.