- At-Will Employment: Indiana follows the at-will employment doctrine, allowing employers to terminate employees without cause, except in cases involving contracts or discriminatory reasons.
- Right-to-Work Law: Employees cannot be compelled to join a union or pay union dues as a condition of employment.
- Youth Employment: Employers with five or more minors must use the Indiana Department of Labor’s Youth Employment System (YES) for tracking and reporting.
Indiana adheres to federal minimum wage standards, with a minimum wage of $7.25 per hour. Overtime must be paid at 1.5 times the regular rate for hours worked beyond 40 in a week. Employers are required to report new hires within 20 days and must comply with a flat state income tax rate of 3.23%, in addition to county taxes. State unemployment insurance taxes apply to the first $9,500 of an employee's earnings, with rates determined by the employer's experience.
Access competitive benefits like health insurance and retirement plans, often at a lower cost through a PEO. Leverage its pooled volume for enterprise rates - resold to PEO customers, with no employment minimums in Indiana.
- Health Insurance: Employers with 50 or more full-time employees are required by the Affordable Care Act to provide health coverage.
- Workers’ Compensation: All employers must carry workers’ compensation insurance for their employees.
- Unemployment Insurance: Employers must contribute to the state unemployment insurance program based on experience rating.
Check out our comprehensive state hiring guide.



.webp)


.png)








