What are the rules for paying overtime?
In the state of Indiana, employers must abide by the rules of wage and hour law. This law states that any non-exempt employees who work over 40 hours in a work week must be paid overtime. This overtime rate is calculated as one-and-a-half times the employee’s regular rate of pay for any hours worked over 40. For example, if an employee’s regular rate of pay is $15/hour and they work 45 hours in one work week, they are entitled to 5 hours of overtime. These 5 hours of overtime must be paid at a rate of $22.50/hour ($15 x 1.5 = $22.50). Additionally, it is important to note that overtime pay must be paid within 15 days of the pay period in which the overtime hours were worked in order to comply with the law. Furthermore, employers should keep accurate time records for all non-exempt employees. To recap, employers in Indiana must pay non-exempt employees at a rate of one-and-a-half times their regular rate of pay for any hours worked over 40 in a workweek. This overtime rate must be paid within 15 days of the pay period in which these hours were worked. Employers should also keep accurate records of the hours worked by their non-exempt employees.
Related FAQs
What is the difference between paid and unpaid leave?Is it legal to dock an employee's pay for violating a policy?
When can an employer legally deduct wages from an employee's paycheck?
What is the impact of minimum wage increases on businesses?
Are there any exceptions to the minimum wage law?
Are employers required to provide employees with work breaks?
What are the restrictions on working hours for minors?
What are the rules for paying employees for work-related travel?
What are the differences between compensatory time and paid time off?
Are employers allowed to pay tipped employees less than minimum wage?
Related Blog Posts
What is Wage and Hour Law and How Does it Affect Your Business? - July 31, 2023What Employers Need to Know About Wage and Hour Law - August 7, 2023
The Basics of Payroll Law and Compliance - August 14, 2023
Compensating Your Employees - Tips for Wage and Hour Law Compliance - August 21, 2023
Understanding Overtime Rules Under Wage and Hour Law - August 28, 2023