For our last post on the topic of coverage under Federal and Indiana state employment laws, we turn to Indiana employment laws.  Like many states, Indiana tries to fill in gaps where Federal Laws have failed to provide employees protection.  But in some cases, Indiana defers to federal law by exempting employers from compliance if federal law already applies.

Indiana Civil Rights Law:
The Indiana Civil Rights Law (ICRL) prohibits discrimination on the basis of race, religion, color, sex, age, disability, national origin, or ancestry. The ICRL generally applies to employers with six (6) or more employees.

The exception is age discrimination.  Employers with one (1) or more employees may not discriminate on the basis of age.  The ICRL prohibits age discrimination against employees between the ages of forty (40) and seventy-five (75) years old. If the employer is subject to the Age Discrimination in Employment Act (ADEA), it is exempt from the ICRL requirements regarding age discrimination.

Indiana Minimum Wage Law – Equal Pay Provision:
The Indiana Minimum Wage Law (IMWL) prohibits employers with two (2) or more employees from discriminating on the basis of sex in regards to compensation for equal work.  If the employer is subject to the Fair Labor Standards Act (FLSA), it is exempt from the requirements of this IMWL provisions.

Indiana Minimum Wage Law:
The IMWL applies to employers with two (2) or more employees.  It requires employers to pay a minimum wage of at least $7.25 per hour and overtime after forty (40) hours in a single workweek.  If the employer is subject to the FLSA, it is exempt from the IMWL provisions.

Indiana Wage Claim Statute:
The Indiana Wage Claim Statute (IWCS) applies to any employer who employs at least one (1) employee.  Under the IWCS, employers must pay an employee his or her earned wages on the next regular pay date following termination, with some limited exceptions.

Child Labor:
Indiana regulates the employment of children under the age of eighteen (18), with some limited exceptions.  The law restricts the time of day, hours, and type of work performed by minor employees ages eighteen (18) and under.  Restrictions vary depending on the age of the child.

Indiana Common Construction Wage Act:
The Indiana Common Construction Wage Act (ICCWA) applies to most state and local public construction projects where the cost of construction is $150,000.00 or more.  The coverage threshold increases to $250,000.00 on January 1, 2012, and $350,000.00 on January 1, 2013.  Employers subject to the ICCWA must pay the prevailing wage applicable to the work performed under the contract.

Action Items:
The beginning of a new year is a great time to make changes to employment policies, particularly where past practice does not comply with current legal requirements.  Employers should:

  1. Carefully review current employment policies and payroll practices;
  2. Review the requirements of state and federal employment laws; and
  3. Revise employment policies and correct practices to comply with state and federal requirements.
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