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Employers may be required under both federal and state law to retain certain types of records relating to their current and former employees. View the Recordkeeping Requirements by Federal Law for detailed information about the federal requirements.

Indiana requires employers to maintain the following types of records:

Wages/Hours/Payroll

  • The following information must be retained for each employee:
    • Name;
    • Address;
    • Occupation;
    • Daily/weekly hours worked; and
    • Wages paid each pay period.

Safety and Health/Workers' Compensation

Record Keeping Requirements in Indiana
Click to enlarge.
  • Employers must keep a record of all disablements caused by occupational disease, fatal or otherwise, received by employees in the course of their employment.
    • A written report must be made to the insurance carrier within 7 days of a disablement that causes the employee's death or absence from work for more than 1 day.
  • Employers must report to IOSHA/OSHA anytime an employee is hospitalized within 24 hours. This does not include employees taken in for testing or observation only. Employers must also now report any amputation or loss of an eye within 24 hours. View the reporting rules infographic here.
  • Employers are also required to maintain accurate records of employee exposures to potentially toxic material or harmful physical agents.

Child Labor

  • Job permits for workers under age 18 must be retained for the duration of employment.

Discrimination

  • An employer must keep records of the ages of its employees.

Employee Access to Records

  • Employees may access records pertaining to hazardous substance exposures.

Please Note: The state laws summaries featured on this site are for general informational purposes only. In addition to state law, certain municipalities may enact legislation that imposes different requirements. State and local laws change frequently and, as such, we cannot guarantee the accuracy or completeness of the information featured in the State Laws section. For more detailed information regarding state or local laws, please contact your state labor department or the appropriate local government agency.

Both state and federal law restricts the employment of minors. When state child labor laws differ from federal provisions, an employer must comply with the higher standard. State child labor standards are presented below. However, Indiana's child labor laws do not apply to parents employing their own children, except for restrictions on underage employment, employment during school hours, and employment in hazardous occupations.

Key Employer Requirements

Before an employer hires a minor child, it must place on file in its office an employment certificate issued by the school the child attends or the school corporation in which the child resides. Exceptions to this requirement apply to:

  • Farm laborers
  • Domestic workers
  • Golf caddies
  • Newspaper carriers
  • Performers
  • Actors
  • Models
  • Certified sports referees, umpires, or officials
  • Minors who have been legally emancipated
  • Minors who have graduated from high school
  • Minors who will be working for a business that is solely owned by a parent

Employers of minors in occupations requiring employment certificates must also post a notice in a conspicuous place.

Restrictions on Time & Hours Worked

Minors under 14
In general, minors must be at least 14 years of age to work in Indiana.

Minors 14 and 15
Indiana and federal law combine to allow minors aged 14 and 15 to work:

  • 3 hours per school day
  • 8 hours per non-school day
  • 18 hours per school week
  • 40 hours per non-school week
  • No earlier than 7:00 a.m.
  • No later 7:00 p.m. on nights before school
  • No later than 9:00 p.m. between June 1 and Labor Day

Minors 16 Years of Age
In general, 16-year-olds may work 8 hours per day, 30 hours per week, and until 10:00 p.m. on nights followed by a school day. However, with written parental permission, a 16-year-old may work:

  • 8 hours per day
  • Until 11:00 p.m. on nights followed by a school day
  • Until 12:00 a.m. on nights not followed by a school day
  • 40 hours per school week
  • 48 hours per non-school week

Notably, 16-year-olds may not work more than 6 days per employer's workweek or work before 6:00 a.m.

Minors 17 Years of Age
In general, 17-year-olds may work 8 hours per school day, 30 hours per week, and until 10:00 p.m. on nights followed by a school day. However, with written parental permission, 17-year-olds may work:

  • 8 hours per day
  • 40 hours per school week
  • 48 hours per non-school week
  • Until 11:30 p.m. on nights followed by a school day
  • Until 1:00 a.m. on nights followed by a school day, but not on consecutive nights and not more than two school nights per week
  • Until any time on days not followed by a school day

In addition, please note that:

  • 17-year-olds may not work more than 6 days per employer's workweek and may not begin work before 6:00 a.m. on school days
  • If a 17-year-old will be working more than 30 hours per week or more than 8 hours per day during a period when school is not in session (e.g., summer, spring or holiday break), he or she must have written parental permission on file before working extended hours

Breaks

If a minor 14-17 years of age works 6 or more hours in a shift, the employer is required to provide the minor with 1-2 breaks totaling at least 30 minutes. These breaks may be taken at any point during the minor's shift. In addition, Indiana requires that break logs be maintained by the employer to document all paid and unpaid breaks provided to minor employees.

Restrictions on Duties Performed

Indiana prohibits children under 18 from working in hazardous occupations, except when the child is working for a parent (or person standing in place of a parent) on a farm owned or operated by the parent or person. In addition, with some exceptions for 18-, 19-, and 21-year-olds, Indiana also bans the employment of minors to sell, furnish, or otherwise deal in alcoholic beverages.

Please Note: The state laws summaries featured on this site are for general informational purposes only. In addition to state law, certain municipalities may enact legislation that imposes different requirements. State and local laws change frequently and, as such, we cannot guarantee the accuracy or completeness of the information featured in the State Laws section.

For more detailed information regarding state or local laws, please contact us or call 812-222-1559.

IMPORTANT ALERT!

A mandatory update has occurred to state posting requirements in Indiana. The Teen Work Hour Restrictions notice has been updated with a poster revision date of 03-19-2019.

The Indiana Department of Labor has updated its Teen Work Hour Restrictions notice. The updated notice reflects changes to the employment restrictions for minors. The poster revision date is March 19, 2019.

If you are not a subscriber to our update services, please contact RBSK Payroll to ensure that you are in compliance with Labor Law Posting Compliance Requirements.

RBSK Payroll direct line is 812.222.1559 and the web site link to poster services is: https://rbskpayroll.com/labor-law-poster-solutions/

Whether your company has 5 employees or 500, it's important to conduct a regular review of your HR and benefits-related notices, records, and procedures to ensure compliance with the law. The checklist below features key steps for evaluating your management practices to help keep your company HR compliant.

HR Compliance Quick-Check
Download the HR Compliance Quick-Check Checklist.

Hiring

  • Job descriptions, advertisements, and interviews are ADA compliant and meet state nondiscrimination requirements related to disability.
  • Employment applications comply with state laws about prohibited interview statements.
  • All interview questions are appropriate, and relate directly to the position and the applicant's ability to perform the job's essential functions. Questions do not discriminate based on race, sex, religion, age, ethnic group, national origin, marital status, military service, disability, or any other protected status.
  • Written authorization is obtained for background checks, and Fair Credit Reporting Act requirements are satisfied, along with state requirements for conducting background checks.
  • Policies and procedures related to drug testing, use of arrest and conviction records, and other candidate-information requests comply with federal and state law.
  • All recruitment and hiring strategies, policies, and procedures comply with federal and state nondiscrimination laws.
  • Job offer letters are reviewed by an HR specialist or employment law attorney and include a statement regarding employment at-will.
  • Forms I-9 are completed for all new employees within 3 business days from the first day of work for pay.
  • New hire reporting requirements are satisfied and necessary tax forms (Form W-4 and any required state forms) are collected from new employees.
  • Orientation and onboarding programs are ready for welcoming new employees and familiarizing them with your basic management practices.

Employee Pay

  • Employees are properly classified as exempt or non-exempt based on their specific job duties and compensation. (Note: Job titles alone do not determine an employee's exempt or non-exempt status.)
  • All pay practices, including minimum wage and overtime compensation comply with the Fair Labor Standards Act and related state laws.
  • Employee pay periods (weekly, bi-weekly, semi-monthly) are scheduled in accordance with state wage payment timing requirements.
  • Pay and incentive programs treat employees equitably, and decisions about promotions and merit raises are based on clear, objective criteria.
  • Independent contractor relationships are carefully reviewed to prevent misclassification.

Benefits

  • Employee benefit plans (medical and retirement) comply with all requirements under federal and state law, including Health Care Reform notices and other requirements for group health plans.
  • All plan documents, including enrollment forms and employee communications, are accurate, consistent, and legally compliant.
  • Summary plan descriptions (SPDs) and other benefit plan notices are distributed to employees as required under federal and state law.
  • All reporting and filing requirements for medical and retirement benefits are satisfied.
  • Employees are provided required notices about continuation of health coverage under COBRA or state "mini-COBRA" laws, and all obligations for continuation coverage are fulfilled.
  • Policies and procedures on paid vacation, holidays, and sick leave are reviewed on a regular basis (including for compliance with FMLA or similar state laws), along with other benefits offered, such as flex-time and telecommuting.
  • Information about benefits is clearly communicated to employees, and policies and procedures for benefits are applied fairly and consistently.

Employee Policies & Procedures

  • All company policies and procedures comply with federal and state labor laws on employee leave, equal employment opportunity, sexual harassment, worker safety, and other requirements.
  • Every employee is provided a handbook explaining company policies and procedures for standards of conduct, nondiscrimination, benefits, and other terms and conditions of employment. (Be sure employees sign a receipt acknowledging that they have reviewed the handbook.)
  • Labor law posters required to be displayed under federal and state law are posted where employees can easily see them.
  • Procedures are in place for maintaining employee records and files as required by law, including for designating the information to be collected, confidentiality, and how long to keep records. Medical records and other confidential documents are kept in a separate file from personnel files.
  • Employees receive necessary skills and regulatory training, including training on safety and sexual harassment.
  • Human resources policies and procedures apply equally to all employees, and are applied fairly and consistently throughout the company.

Performance Reviews

  • Performance reviews are conducted for all employees on a regular basis.
  • Job expectations and responsibilities are clearly communicated to employees, including the conduct and results required and the performance standards by which they will be measured.
  • Systems for measuring performance are in place (e.g., number of sales or customer satisfaction), based on specific job-related functions and criteria set forth in the employee's job description.
  • Employee job descriptions are reviewed and updated at least annually.
  • Accurate documentation regarding performance is kept for each employee and documentation is direct, factual, and detail-oriented to support disciplinary or other personnel decisions.
  • Employee performance reviews are based upon specific, job-related criteria, and feedback provided is factual and complete.
  • Performance is compared against job descriptions and goals.
  • The review process and systems for measuring performance treat employees equitably.

Employee Discipline & Termination

  • Policies and procedures for handling employee disciplinary actions and investigations are clearly defined, written, and communicated to employees.
  • All matters involving employee discipline warnings, investigations, and terminations are carefully and accurately documented, and related notices are reviewed on a regular basis.
  • Termination meetings are conducted to inform the employee of the termination, discuss return of company property, deliver the employee's final paycheck, and facilitate the employee's departure. A summary of the meeting and any related information is prepared and placed in the employee's personnel file.
  • Departing employees are provided with a written summary of accrued benefits and notices about post-termination benefits, including, where applicable, compensation for vacation and sick time, continuation of health coverage, severance pay, and 401(k) plan information. Be sure to comply with any applicable federal or state requirements.
  • Policies are in place for collecting keys and other company property from the terminated employee and confirming that access to computer systems, email, and voicemail is deactivated.
  • Final paychecks are delivered at the time of termination, or as otherwise required by state law.
  • Neutral references confirming a former employee's position and dates of employment are available upon request in accordance with company policy.
  • Discipline, investigation, and termination procedures comply with applicable federal and state laws and are enforced fairly and consistently.

Please note that the above list is not all-inclusive. If an HR assessment reveals violations that are not subsequently corrected, your company could be at risk for fines or lawsuits. If you have any questions about your obligations under the law or about best practices when it comes to HR compliance, please give us a call.

Outsourcing Payroll

Many employers outsource some or all of their payroll and related tax duties to third-party payroll service providers.

These providers can help you:

  • Administer payroll and employment taxes; and
  • Report, collect, and deposit employment taxes with state and federal authorities.
  • However, it is important to understand that you are still ultimately responsible for the payment of income tax and Social Security and Medicare taxes.

Employer Responsibilities

Employers who outsource payroll should consider the following:

  • Remember that you are ultimately the party responsible for the payment of income tax withheld and both employer and employee portions of Social Security and Medicare taxes. If the third party fails to make the federal tax payments, the IRS may assess penalties and interest on your employer account. You may also be held personally liable for certain unpaid federal taxes.
  • If there are any issues with an account, the IRS will send correspondence to the employer's address of record. The IRS strongly suggests that you do not change your address of record to that of the payroll service provider, as it may leave you uninformed of tax matters.
  • You should ensure that your payroll service provider is using the Electronic Federal Tax Payment System (EFTPS) so you can confirm that payments are being made on your behalf.

Third-Party Arrangements

As part of the outsourcing process, employers may enter into an agreement in which the third party agrees to take over some or all of the employer’s federal employment tax withholding, reporting, and payment responsibilities. Depending on the arrangement, an employer who uses a third party to perform federal tax functions on its behalf may remain solely liable for taxes, or may become jointly and severally liable.

The following are common third-party arrangements:

  • Payroll Service Provider (PSP). A PSP typically prepares employment tax returns for your signature and processes the withholding, deposit, and payment of the associated taxes. A PSP may also be authorized to prepare employee paychecks and Forms W-2.
  • Reporting Agent (RA). Generally, a reporting agent is a PSP that is authorized to perform certain acts on behalf of an employer. You can use IRS Form 8655, Reporting Agent Authorization, to designate a PSP as a reporting agent for things like payroll services and depositing and paying taxes on your behalf.
  • Section 3504 (Form 2678) Agent. You may appoint an agent (under section 3504 of the Internal Revenue Code) to perform acts such as withholding, reporting, and paying federal employment taxes. A significant difference from a PSP or RA is that the section 3504 agent agrees to assume liability along with you for your Social Security, Medicare, and federal income tax withholding responsibilities.

The chart below illustrates the most significant differences among these third-party arrangements:

Outsourcing Payroll

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Additional Resources

To learn more about outsourcing payroll from the IRS, please visit the links below:

RBSK Payroll
RBSK Payroll Partners