Indiana Overtime Laws 2026
In Indiana, overtime pay requirements are dictated by the Indiana Minimum Wage Law (Indiana Code Section 22-2-2-4) and the federal Fair Labor Standards Act (FLSA). Indiana operates on a standard 40-hour weekly threshold and does not require daily overtime or double-time pay.
Key Wage and Hour Rules:
- Weekly Overtime Limit: Non-exempt employees must be paid 1.5 times their regular hourly rate for all hours worked over 40 in a single workweek.
- Statutory Minimum Wage: In 2026, Indiana's standard minimum wage remains at the federal level of $7.25 per hour. Overtime rates for minimum wage earners start at $10.88 per hour.
- Tipped Minimum Cash Wage: Employers in Indiana may pay tipped employees a cash wage of $2.13 per hour, provided tips combined with cash wages equal the $7.25 minimum wage.
Indiana Seasonal Amusement & Recreational Exemptions
Under both Indiana state law (I.C. 22-2-2-4(a)) and federal FLSA Section 13(a)(3), a major statutory exemption exists for **seasonal amusement and recreational establishments**. This exemption applies to workers employed at summer camps, fairgrounds, water parks, and seasonal resorts (such as Indiana Beach or Holiday World).
If an establishment does not operate for **more than seven months** in any calendar year, or if its average receipts for any six months of the preceding year do not exceed 33.3% of its average receipts for the other six months, it is **exempt from standard overtime requirements**.
| Employer/Facility Type | State & Federal Overtime Rules | Wage Impact on Worker |
|---|---|---|
| Standard Indiana Employers | Requires 1.5x pay for hours worked over 40 | Protected: Entitled to full time-and-a-half overtime. |
| Seasonal Amusement Parks (operating <7 months/yr) | 100% Exempt from overtime premiums | Straight-Time: Overtime hours are paid at regular straight-time (1.0x). |
| State/County Fairs & Exhibitions | 100% Exempt from overtime premiums | Straight-Time: Overtime hours are paid at regular straight-time (1.0x). |
Table illustrating the impact of Indiana's seasonal amusement and recreational overtime exemptions.
Critical Worker Safeguards:
This exemption only applies to employees of the seasonal recreational establishment itself. Third-party vendors, contractors, or independent commercial operations running inside the park grounds generally do not qualify and must pay 1.5x overtime. Furthermore, clerical, maintenance, or marketing staff who work on site year-round (more than 7 months) are not covered by the seasonal exemption and remain non-exempt.