Your paycheck shows up late, comes in short, or has a deduction you never agreed to. Indiana has specific rules about how often you must be paid and what can be taken out of your wages. Here is what Indiana employees should know.
How often Indiana employers must pay you
Under Indiana’s Wage Payment Statute, most employers must pay employees at least semimonthly or biweekly, if the employee asks for that schedule. Wages generally must be paid within 10 business days after the end of the pay period they cover. The statute is in Title 22 of the Indiana Code (Indiana Code § 22-2-5-1).
In practice, that means an employer cannot hold your wages for a month or more, or delay a paycheck because of cash-flow problems.
When you leave a job
If you quit or are fired, your final pay is generally due by the next regular payday. Indiana treats earned, promised vacation pay as wages in many cases, depending on the employer’s policy. Read our guides to Indiana final paycheck law and PTO payout rules.
Which deductions are allowed
Some deductions are required or allowed by law: taxes, Social Security and Medicare, court-ordered garnishments, and child support withholding.
Other deductions are only allowed with your written authorization. Indiana’s wage assignment law (Indiana Code § 22-2-6-2) allows deductions only for purposes the statute lists, such as insurance premiums, retirement contributions, union dues, and certain purchases, and only when you have signed an authorization that you can revoke.
Federal law adds another limit: deductions for items that mainly benefit the employer, such as uniforms, tools, or cash-register shortages, cannot reduce your pay below the federal minimum wage or cut into overtime pay (29 C.F.R. § 531.35).
Deductions that are often illegal
- Docking pay for a register shortage or damaged equipment without a valid written authorization
- Charging for required uniforms or tools in a way that drops your pay below minimum wage
- Deducting a “training repayment” from your final check without proper authorization
- Taking back commissions you have already earned
- Holding your paycheck until you return company property
If any of these sound familiar, see our guide to unpaid wages in Indiana.
Overtime and minimum wage still apply
Every paycheck must also meet minimum wage and overtime rules. Non-exempt employees must be paid time and a half for hours over 40 in a workweek. See Indiana overtime laws and the current Indiana minimum wage.
What you can do about late or short pay
- Check your pay stubs against your hours, rate, and any written agreements.
- Ask payroll in writing to explain or correct the problem, and keep a copy.
- File a wage claim with the Indiana Department of Labor, or pursue the claim in court.
- Talk to a lawyer if the amount is significant, the problem keeps happening, or you were punished for complaining.
Indiana’s wage statutes can allow employees to recover more than the unpaid amount, including additional damages and attorney fees, when an employer fails to pay wages on time. Punishing someone for complaining about pay can also be illegal retaliation. See pay cuts after a complaint.
What counts as wages
In Indiana, “wages” generally includes more than your hourly rate or salary. Depending on the circumstances, it can include earned commissions, bonuses that are tied to your work and not purely discretionary, and accrued vacation pay that a policy promises to pay out. Whether a particular payment counts as wages affects which deadlines and remedies apply, so it is worth getting advice on larger amounts.
Keep your own pay records
Employers must keep payroll records, but it helps to keep your own:
- Save every pay stub, or download them from your payroll portal each pay period.
- Keep a simple log of the hours you work, including breaks you did not take.
- Save offer letters, commission plans, and any messages about pay changes.
Your own records are often the fastest way to prove a short or late paycheck.
Overpayments: can your employer take money back?
Sometimes an employer overpays and then tries to take the money back from a later check. Employers generally must still follow Indiana’s wage deduction rules, and a deduction cannot drop your pay below the federal minimum wage. If your employer says you were overpaid, ask for the calculation in writing and do not sign an authorization until you understand it.
Tipped employees
Tipped employees in Indiana have their own pay rules, including how much the employer must pay directly and who can share in tips. See our guide to Indiana tipped employee laws.
Independent contractor or employee?
If you are paid on a 1099 but work like an employee, with set hours, the employer’s tools, and close supervision, you may be misclassified. Misclassified workers can miss out on overtime, minimum wage protection, and payroll tax contributions. See our guide to 1099 versus W-2 misclassification.
Late paychecks and bounced checks
A paycheck that arrives late, or a check that bounces, is more than an inconvenience. It can be a violation of Indiana’s Wage Payment Statute. Write down the date each payment was due and when it actually arrived, keep any bank fees you were charged, and raise the issue in writing.
Common paycheck problems we see
- Pay periods longer than the law allows
- Final paychecks held until the employee returns equipment
- Commissions withheld after an employee leaves
- Deductions for shortages, damage, or uniforms without proper authorization
- Hours shaved off time records
If any of these sound familiar, read our guide to proving wage theft in Indiana.
Frequently asked questions
Can my employer pay me once a month in Indiana?
Generally not if you ask to be paid semimonthly or biweekly.
Can my employer take money out of my check for a mistake I made?
Usually only with a valid, signed, revocable authorization for a purpose the law allows, and never below minimum wage.
My paycheck is late. What should I do?
Ask in writing for payment, keep records, and file a wage claim if it is not fixed.
Can my employer hold my paycheck until I return company equipment?
Generally no. Your employer can pursue its property in other ways, but wages are still due on time.
What records should I keep about my pay?
Pay stubs, your own log of hours worked, offer letters, commission plans, and any messages about changes to your pay.
Get help recovering your wages
If your pay is late, short, or reduced by deductions you did not agree to, contact Amber Boyd Law for a free case evaluation. Learn more on our unpaid wages page.
This article provides general information about Indiana and federal employment law. It is not legal advice, and reading it does not create an attorney-client relationship.
