Indiana Department of Labor

• The Indiana Department of Labor can help employees pursue wage claims against their employers who illegally deduct compensation from their paychecks or illegally withhold their wages. Indiana law allows employees to pursue wage claims against their employers by filing complaints with the Indiana Department of Labor if their claims for wages are at least $30 but no more than $6,000. Employees can file private lawsuits against their employers if their wage claims exceed the $6,000 Indiana Department of Labor limit.
  
  

Written Agreement

• Under Indiana law, an employer cannot deduct from an employee's paycheck without a written agreement from the employee authorizing the deduction. After obtaining a written authorization allowing the deduction, an employer may only deduct wages to cover insurance premiums, stocks or bonds, labor union dues, loans between an employer and employee, contributions to charities, hospital service or medical expense plan and payment for direct deposit, and payments for merchandise sold by an employer. The employer's written agreement with an employee must be revocable at will by that employee. Further, to be legally valid, an employee must deliver the copy of the written deduction authorization to her employer within 10 days of signing the authorization permitting deduction.
  
  

Authorized Deductions

• Indiana law prohibits employers from withholding wages to pay for the costs of uniforms. An employer may not deduct uniform costs from an employee's paycheck if wearing the uniform is mandatory. However, an employer can deduct the cost of an optional uniform from an employee's paycheck if the employee provides written consent authorizing the deduction. An employer can also deduct the cost of merchandise from an employee's paycheck if requested by an employee.
  
  

Paycheck Requirements

• Indiana law requires employers to provide itemized pay statements or pay stubs each pay period. An employer's itemized statement must reflect the total hours of work for that pay period, deductions, total wages paid, total hours worked and paydays covered by that pay period. An employer must provide an employee's final paycheck by the next regularly scheduled pay date for all wages owed up until the date of discharge or voluntary termination.
  
  In Indiana, employers do not have to provide paid vacation to their employees. However, if they voluntarily provide accrued vacation leave, they must include any unused leave in the final paycheck. According to Indiana's wage laws, unused vacation leave is a type of compensation. However, employers can require their employees to comply with certain personnel policies before they terminate employment to receive their unused vacation, such as providing notice prior to termination.
  
  

Considerations

• Since state laws can frequently change, do not use this information as a substitute for legal advice. Seek advice through an attorney licensed to practice law in your state.