What labor laws apply when hiring employees?

Labor Laws for Hiring Employees in Indiana

When hiring employees in Indiana, businesses must comply with both federal and state labor laws. Understanding these laws ensures proper hiring practices, payroll compliance, and workforce management.

Key Labor Law Requirements

• Employment Eligibility Verification: Complete Form I-9 for every new hire to verify legal work authorization.
• Minimum Wage: As of 2026, Indiana follows the federal minimum wage of $7.25 per hour. Ensure payroll systems reflect this standard.
• Overtime Rules: Indiana adheres to the federal Fair Labor Standards Act (FLSA) requiring overtime pay at 1.5 times the regular rate for hours worked over 40 in a workweek, unless exempt.
• Employee Classification: Correctly classify workers as employees or independent contractors to comply with tax withholding and benefits obligations.
• Workplace Posters: Display required federal and Indiana labor law posters in a visible location for employees.
• Child Labor Laws: Follow Indiana-specific restrictions on the hours and types of work minors can perform.
• Anti-Discrimination: Comply with federal Equal Employment Opportunity laws and Indiana civil rights protections during hiring and employment.

Operational Considerations

• Recordkeeping: Maintain accurate records of hiring documents, payroll, and work hours to meet compliance and reporting needs.
• Payroll Taxes: Register for state withholding tax accounts and unemployment insurance with the Indiana Department of Revenue and Department of Workforce Development.
• New Hire Reporting: Report newly hired employees to the Indiana New Hire Reporting Center within 20 days of hire to support child support enforcement.
• Benefits and Insurance: Evaluate workers’ compensation insurance requirements and consider health insurance obligations under applicable laws.
• Automation Tools: Use HR and payroll software to streamline compliance with labor laws, tax filings, and employee record management.

Following these operational steps will help Indiana businesses hire employees in compliance with labor laws and maintain efficient workforce management.