An Indiana employment contract outlines the rights, responsibilities, and obligations of the employer and employee during employment. Once both parties have signed the agreement, they are bound to its terms. An employment contract also includes essential provisions such as compensation, vacation time, probationary periods, confidentiality, and termination procedures.
In Indiana, for an employment contract to be valid and enforceable, several elements must be met: the place and period of employment, the nature of the services the employee is to render, and their compensation [1] .
- Laws: Indiana Code Title 22.
- Definition of Employee: § 22-2-2-3: With some exceptions, an employee is “any person employed or permitted to work or perform any service for remuneration or under any contract of hire, written or oral, express or implied by an employer in any occupation.”
By Type (4)
Independent Contractor Agreement
Defines the professional relationship between a contractor and their client.
Subcontractor Agreement
Outlines the contractual arrangement between a contractor and a subcontractor.
Employee Non-Compete Agreement
Protects a business by preventing employees from working for competitors.
Employee Non-Disclosure Agreement
Ensures the integrity of proprietary information, safeguarding against exposure.
Hiring in Indiana
Before writing an Indiana employment contract, you must know the state labor laws and regulations.
At-Will Employment
Indiana is an at-will employment state. There are also exceptions to the at-will employment rules.
Exceptions
- Public Policy: Yes
- Implied-Contract: No
- Good-Faith Exception: No
Minimum Wage ($/hr)
Basic Minimum Rate (per hour): $7.25 [2] .
Premium Pay After Designated Hours: Weekly – 40.
Child Labor
Indiana does not require employment certificates or age certifications for minors. Employers will be responsible for maintaining an accurate list of all minor employees. If an employer has four or fewer minors as employees, registration will not be required [3] . Accredited schools use the Online Work Permit System to issue work permits for minors in Indiana.
Payday
Indiana employers are required to pay employees at least twice a month. Regular paydays must be scheduled in advance, no later than ten days after the end of a pay period for which the wages are due.
Meal and Rest Breaks
Indiana does not require minimum paid rest or meal periods. Workers covered by a union collective bargaining agreement may be entitled to mandatory breaks under other applicable regulations or by contract.
Recordkeeping Requirements
Employers in Indiana are required to keep employee records for an undefined period [4] on:
- Wages, hours, and payroll
- Safety and health/workers’ compensation
- Child labor
- Discrimination
- Employee access to records
Sample
Below, you can download an Indiana employment contract template in PDF or Word format.
