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#DOL: Wage - Hour FAQs

Wages

Minimum Wage

Q: Is my employer required to pay minimum wage or overtime?

A: Most Indiana employers and employees are covered by the minimum wage and overtime provisions of the federal Fair Labor Standards Act (FLSA); however those not covered under federal law may still be covered by the Indiana Minimum Wage Law.

Tipped Employees

Q: If I am a waiter or waitress and earn tips, is my employer still required to pay me minimum wage?

A: Tipped employees must be paid at least the minimum wage. The employer is required to pay a base hourly wage of $2.13 an hour. If the employee is not compensated at a rate equal to the minimum wage after adding any tips he/she received to the base hourly wage of $2.13 an hour, the employer must pay the employee the difference. If the employee earns more than the minimum wage after adding the tips he/she received to the hourly wage of $2.13 an hour, the employer has fulfilled his/her obligation. A tipped employee means any employee engaged in an occupation in which he/she customarily and regularly receives more than $30 a month in tips.

Q: Can my employer collect my tips and then distribute them out to other employees?

Directly obtaining tips for redistribution is not required, nor is having a written agreement or written policy.