🇺🇸 INDIANA STATE LAW – 2026 UPDATE

Indiana Remote Work Laws 2026

⚠️Informational only — not legal or tax advice.

Last Updated: December 2025
Applicable Period: 2026 tax year and current employment regulations
Key Characteristic: Employers with remote workers physically located in Indiana

Indiana remote work laws and employment regulations guide

Table of Contents

Click any item below to jump to the relevant section

Overview

Indiana generally follows federal employment standards while maintaining its own state-specific regulations in certain areas. According to official state sources, Indiana’s employment law landscape is characterized by alignment with federal law for minimum wage and overtime, combined with state-administered programs for workers’ compensation and unemployment insurance.

General Characteristics:

  • State minimum wage (2025): $7.25/hour (matches federal minimum wage)
  • Paid sick leave: Not mandated by state law
  • State income tax (2025): 3.0% flat rate (decreasing to 2.95% in 2026, 2.9% in 2027)
  • Meal/rest breaks: Not mandated by state law for adult employees
  • Overtime rules: Follows federal FLSA standards
  • Workers’ compensation: Generally required for employers with one or more employees

These are general starting points only. Specific applicability depends on many factors including employer size, industry, location, and individual circumstances. For guidance on how these laws apply to specific situations, consult the Indiana Department of Labor and licensed legal counsel.

Source: Indiana Department of Labor – https://www.in.gov/dol/

Official State Agency Information

The Indiana Department of Labor administers various employment laws in Indiana, including wage and hour laws, youth employment, and occupational safety and health programs.

Contact Information:

  • Website: https://www.in.gov/dol/
  • Phone: (317) 232-2655
  • TT/Voice: (800) 743-3333
  • Address: Indiana Government Center – South, 402 West Washington Street, Room W195, Indianapolis, IN 46204

Note: This agency can provide official information about state employment laws. For legal advice on how laws apply to your specific situation, consult a licensed attorney.

Indiana Occupational Safety and Health Administration (IOSHA)

Indiana operates a state plan for occupational safety and health through IOSHA, which is part of the Indiana Department of Labor.

Contact Information:

  • Website: https://www.in.gov/dol/
  • Phone: (317) 232-2655
  • Services: On-site consultation, safety training, compliance assistance

Indiana Workers’ Compensation Board

The Workers’ Compensation Board administers Indiana’s workers’ compensation system.

Contact Information:

Source: Indiana Workers’ Compensation Board – https://www.in.gov/wcb/

Indiana Department of Workforce Development

The Department of Workforce Development administers unemployment insurance and workforce services in Indiana.

Contact Information:

Note: Unlike its federal counterpart, the Indiana Department of Labor does not have authority over workforce development or workers’ compensation, which exist as independent agencies.

Source: Indiana Department of Workforce Development – https://www.in.gov/dwd/

Major State Employment Statutes

The following statutes are commonly cited in employment matters in Indiana. This is general information only and does not constitute legal interpretation.

1. Indiana Minimum Wage Law

Statutory Citation: Indiana Code Title 22, Article 2, Chapter 2
Official Source: https://www.in.gov/dol/

General Provisions: According to the Indiana Department of Labor, Indiana’s minimum wage law generally follows the federal Fair Labor Standards Act (FLSA). The state minimum wage is currently the same as the federal minimum wage of $7.25 per hour.

Application to Remote Work: Minimum wage requirements generally apply based on where work is physically performed. Specific applicability depends on multiple factors. Consult the Indiana Department of Labor or legal counsel for guidance on particular circumstances.

Source: Indiana Department of Labor – https://www.in.gov/dol/

2. Indiana Workers’ Compensation Act

Statutory Citation: Indiana Code Title 22, Article 3
Official Source: https://www.in.gov/wcb/

General Overview: According to the Indiana Workers’ Compensation Board, Indiana’s workers’ compensation system provides benefits to employees who suffer work-related injuries or illnesses. The system generally operates on a no-fault basis for covered workers.

Coverage: The law generally requires employers with one or more employees to maintain workers’ compensation coverage. Certain categories of workers may be excluded or have optional coverage.

Application to Remote Work: Coverage questions for remote workers can involve complex factual determinations. Employers should consult the Workers’ Compensation Board and legal counsel for guidance.

Source: Indiana Workers’ Compensation Board – https://www.in.gov/wcb/

3. Indiana Civil Rights Law

Statutory Citation: Indiana Code Title 22, Article 9
Official Source: https://www.in.gov/icrc/

General Overview: The Indiana Civil Rights Law prohibits discrimination in employment based on protected characteristics. The Indiana Civil Rights Commission administers and enforces this law.

Protected Categories: The law generally prohibits discrimination based on race, religion, color, sex, disability, national origin, and ancestry.

Application: These protections generally apply regardless of work location. Specific situations should be reviewed with legal counsel or the Indiana Civil Rights Commission.

Source: Indiana Civil Rights Commission – https://www.in.gov/icrc/

Employee Classification Standards in Indiana

Indiana’s Classification Framework

According to various official sources, Indiana uses different tests depending on the purpose of classification:

For Unemployment Insurance: Indiana generally applies an economic reality test that examines the total relationship between worker and employer.

For Workers’ Compensation: Indiana uses standards that focus on the nature of the working relationship and degree of control.

For Tax Purposes: The IRS Common Law test applies for federal tax classification.

Statutory Authority: Indiana Code Title 22 (various sections)
Official Guidance: Indiana Department of Labor and Indiana Department of Workforce Development

Important Note: The same worker may be classified differently under different laws. A worker could be an independent contractor for tax purposes but an employee for unemployment insurance or workers’ compensation purposes. Each determination depends on the specific legal standard being applied.

Common Factors Considered in Indiana

Based on official guidance and legal precedent, Indiana authorities generally consider various factors when determining worker status. This is a simplified summary—actual legal application is complex and fact-specific.

Factor: Control Over Work

General Description:
According to general legal principles, one key factor is the degree of control the hiring entity has over how, when, and where work is performed.

Considerations that may be relevant:

  • Whether the worker controls their own work methods and schedule
  • Whether the hiring entity supervises work performance
  • Whether the worker can determine the sequence of tasks
  • Whether the worker has freedom to work for others simultaneously

Illustrative Scenario (for general understanding only):

Scenario: A software developer works from home for a company. The company provides detailed specifications for the project but allows the developer to choose their own working hours, methods, and tools. The developer works for multiple clients simultaneously using their own equipment.

General Analysis: This scenario may share some characteristics commonly associated with independent contractor relationships because the worker exercises significant control over work methods and maintains multiple client relationships. However, actual classification depends on all facts and circumstances and requires analysis by appropriate authorities.

⚠️ Important: This example is purely illustrative and does not constitute a legal determination. Classification depends on the totality of circumstances and should be evaluated by legal counsel.

Factor: Financial Arrangements

General Description:
Financial aspects of the relationship, including how payment is structured and who bears business expenses, may be considered relevant.

Considerations that may be relevant:

  • Whether the worker has opportunity for profit or loss
  • Whether the worker makes independent business decisions
  • Whether the worker invests in equipment or facilities
  • Whether payment is by project, hourly, or salary
  • Who provides tools and equipment

Illustrative Scenario (for general understanding only):

Scenario 1: A graphic designer invoices by project, owns their own design software and computer equipment, advertises their services publicly, and determines their own rates. They can accept or decline projects and bear the cost of any revisions needed due to their own errors.

General Analysis: This scenario may share characteristics commonly associated with independent contractor relationships due to project-based payment, equipment ownership, and financial risk. Actual classification requires comprehensive analysis.

Scenario 2: A customer service representative works from home, is paid hourly, uses company-provided software and equipment, follows a company-set schedule, and receives regular paychecks with standard payroll processing.

General Analysis: This scenario may share characteristics commonly associated with employee relationships due to hourly payment, use of employer equipment, and set schedule. Actual classification depends on all circumstances.

⚠️ Important: These examples are for general understanding only and do not constitute determinations. Professional evaluation is required for actual classification decisions.

Factor: Permanency and Exclusivity

General Description:
The duration and exclusivity of the working relationship may be considered relevant factors.

Considerations that may be relevant:

  • Whether the relationship is indefinite or project-specific
  • Whether the worker provides services to multiple entities
  • Whether the worker markets services to the general public
  • Whether the work is integral to the hiring entity’s business

Illustrative Scenario (for general understanding only):

Scenario: A marketing consultant is hired for a three-month project to develop a marketing campaign. During this period, they also work for two other companies on separate projects. They maintain their own business website and actively market their services.

General Analysis: This scenario may share characteristics associated with independent contractor status due to the defined project duration and multiple client relationships. However, if the nature of the work is integral to the hiring entity’s core business operations, other factors may weigh differently.

⚠️ Important: Duration alone does not determine classification. All factors must be considered together. This is not a determination.

Remote Work Considerations for Classification

For remote workers, classification analysis may involve additional considerations:

  • Physical work location vs. business location: Where work is performed may affect jurisdictional questions but does not change the fundamental classification tests
  • Nature of work relationship in virtual environment: The degree of control and independence in remote settings
  • Documentation of relationship: Written agreements and actual practices in remote arrangements
  • Level of integration: Whether remote work is integrated into the hiring entity’s regular business operations

Important: These factors do not change the legal tests but may affect how tests are applied. Classification of remote workers should be reviewed with legal counsel familiar with Indiana law and your specific circumstances.

Potential Consequences of Misclassification

According to Indiana authorities and IRS guidance, misclassification may result in various consequences:

For Employers:

  • Potential back payment of unemployment insurance taxes
  • Possible workers’ compensation premium adjustments and penalties
  • Potential wage and hour claim exposure under FLSA
  • Possible penalties and interest from state and federal authorities
  • Tax implications at state and federal levels
  • Potential legal liability for unpaid employment taxes

For Workers:

  • May affect access to unemployment benefits
  • May affect workers’ compensation coverage
  • May affect wage and hour protections
  • May affect access to employee benefits
  • Tax reporting implications

Note: The specific consequences depend on many factors including the nature and extent of misclassification, whether it was willful, and the jurisdictions involved. This is general information only.

Source: Indiana Department of Labor, Indiana Department of Workforce Development, IRS

How to Seek Guidance on Classification

Classification questions should be addressed through appropriate channels:

Indiana Department of Labor:

Indiana Department of Workforce Development:

IRS (for federal tax implications):

Professional Advisors:

  • Employment attorney licensed in Indiana
  • Tax professional (CPA or enrolled agent)
  • HR consultant with Indiana employment law expertise

Minimum Wage Information for Indiana

Current Rate Information

According to the Indiana Department of Labor, Indiana’s minimum wage follows the federal minimum wage established by the Fair Labor Standards Act (FLSA).

Effective Date Rate Notes
Current (2025) $7.25/hour Matches federal minimum wage
Future Subject to federal changes Indiana law follows FLSA

Statutory Authority: Indiana Code Title 22, Article 2, Chapter 2
Source: Indiana Department of Labor – https://www.in.gov/dol/

Important: Indiana does not have scheduled increases to the minimum wage independent of federal law. Any changes would come through federal legislation or state legislative action.

Application to Remote Workers

According to general legal principles:

  • Minimum wage typically applies based on where work is physically performed
  • A worker performing work from a location in Indiana would generally be subject to Indiana minimum wage requirements
  • Employer location is generally not the sole determining factor
  • Multi-state remote work arrangements may involve complex jurisdictional questions

However, specific situations may vary. Employers should consult the Indiana Department of Labor or legal counsel for guidance on particular circumstances involving remote workers in multiple locations.

Tipped Minimum Wage

Indiana law provides for a lower cash wage for tipped employees under certain conditions.

Tipped Employee Cash Wage (2025): $2.13/hour

Requirements: According to the Indiana Department of Labor and federal FLSA guidance:

  • This rate applies to employees who regularly receive more than $30 per month in tips
  • If the employee’s tips combined with the cash wage do not equal at least $7.25/hour, the employer must make up the difference
  • Employers must maintain records of tips received
  • Certain tip pooling arrangements may be permitted under specific conditions

Example (Illustrative Only):
A server works 40 hours and receives $2.13/hour in cash wages ($85.20 total). If they receive $200 in tips during that week, their total compensation is $285.20 ($7.13/hour). Since this is less than $7.25 × 40 hours ($290), the employer would need to pay an additional $4.80 to meet minimum wage requirements.

⚠️ Note: This is a simplified example for general understanding only. Actual calculations depend on specific circumstances, tip pooling arrangements, and applicable regulations. Consult the Department of Labor or legal counsel for guidance on tipped employee pay.

Source: Indiana Department of Labor – https://www.in.gov/dol/

Training Wage

According to federal FLSA provisions that apply in Indiana:

Youth Training Wage: $4.25/hour

Conditions:

  • May apply to employees under 20 years of age
  • Limited to first 90 consecutive calendar days of employment
  • After 90 days or when employee turns 20 (whichever comes first), full minimum wage applies

Important Limitations:

  • Employers cannot displace regular employees to hire youth at training wage
  • This is a federal provision; verify current applicability with Department of Labor
  • Not all employers may choose to use this provision

Source: U.S. Department of Labor – https://www.dol.gov/agencies/whd/

Exemptions from Minimum Wage

According to federal law, certain employees may be exempt from minimum wage requirements. Common exemptions include:

  • Executive, administrative, and professional employees (meeting specific duties and salary tests)
  • Outside sales employees
  • Certain computer professionals (meeting specific criteria)
  • Some agricultural workers (under specific conditions)
  • Certain seasonal and recreational establishment employees

⚠️ Important: Exemptions are narrowly construed and fact-specific. Job title alone does not determine exemption status. Do not assume an exemption applies without verification from the Department of Labor and legal counsel.

No Local Minimum Wages in Indiana

According to current Indiana law, local governments (cities and counties) are generally preempted from establishing their own minimum wage rates different from the state/federal minimum.

What this means:

  • The same $7.25/hour minimum wage applies throughout Indiana
  • Cities like Indianapolis cannot set higher local minimum wages
  • Employers operating in multiple Indiana locations face consistent minimum wage requirements

Note: This differs from states like California or Washington where local jurisdictions can set higher rates. Verify current law as legislative changes could alter this framework.

Comparison Information (For Reference Only)
State 2025 Minimum Wage 2026 Rate Notes
Indiana $7.25 TBD Follows federal minimum
Illinois $14.00 $15.00 (scheduled) Higher than federal
Ohio $10.45 TBD Adjusted annually
Michigan $10.33 $12.48 (scheduled) Phased increases
Kentucky $7.25 TBD Follows federal minimum

This comparison is for general reference only. Each state’s laws apply based on where work is performed.

Sources: Various state departments of labor

Resources for Current Wage Information

Overtime and Break Regulations in Indiana

A. Overtime Standards

Governing Framework:
Indiana follows the federal Fair Labor Standards Act (FLSA) for overtime requirements. Indiana does not have separate state overtime laws that provide greater protections than federal law.

Statutory Authority: 29 U.S.C. § 207 (FLSA)
Official Source: U.S. Department of Labor – https://www.dol.gov/agencies/whd/overtime

General Overtime Threshold

According to the FLSA:

  • Trigger point: Work beyond 40 hours per week
  • Rate: 1.5 times the regular rate of pay
  • Calculation period: Based on workweek (168-hour period)

⚠️ Daily Overtime: Indiana does not require overtime for work beyond a certain number of hours in a single day. Only weekly overtime (over 40 hours) is required under federal law.

Application to Remote Workers:
Overtime regulations generally apply based on the nature of the work and employment relationship, not work location. Remote workers performing non-exempt work would generally be subject to the same overtime requirements as on-site workers.

Source: U.S. Department of Labor – https://www.dol.gov/agencies/whd/

Calculating Compensable Time

According to federal guidance, “hours worked” for overtime calculation purposes may include:

  • Time actually performing work duties
  • Required meetings and training time
  • Certain waiting time or on-call time (depending on circumstances)
  • Travel time for work purposes (in some situations)
  • Short rest breaks (typically 20 minutes or less)

Complex Issue for Remote Workers:

Determining compensable time for remote workers can involve additional considerations:

  • After-hours communications: Whether responding to emails or messages outside regular hours counts as work time
  • On-call time at home: Whether waiting to respond to work needs from home is compensable
  • Virtual meetings: Time spent in required video conferences
  • Boundaries between work and personal time: Maintaining clear records in home office settings

These determinations are highly fact-specific and depend on factors like:

  • Whether the employee is completely relieved of duties
  • Whether the employer knows or has reason to know work is being performed
  • Whether the time benefits the employer

Employers should consult wage-hour counsel for guidance on tracking and paying remote workers. Implementing clear timekeeping policies is recommended.

Source: U.S. Department of Labor – https://www.dol.gov/agencies/whd/fact-sheets/22-flsa-hours-worked

Overtime Exemptions

The FLSA recognizes certain exemptions from overtime requirements. To qualify for most white-collar exemptions, employees generally must meet tests related to:

  1. Salary Basis: Paid a predetermined salary not subject to reduction based on quality or quantity of work
  2. Salary Level: Meets minimum salary threshold
  3. Duties: Performs exempt-level duties

Salary Thresholds (2025)

According to federal regulations:

Standard Salary Level: $684 per week ($35,568 annually)

Highly Compensated Employee: $107,432 annually (for simplified duties test)

⚠️ Important Note: These thresholds are subject to change through federal rulemaking. In 2024, the Department of Labor proposed significant increases that were subsequently challenged. Verify current thresholds with the Department of Labor before making exemption determinations.

Source: U.S. Department of Labor – https://www.dol.gov/agencies/whd/fact-sheets/17a-overtime

Common Exemption Categories

Executive Exemption:
According to DOL guidance, the executive exemption may apply to employees whose primary duty is management of the enterprise or a department/subdivision, who regularly direct the work of at least two employees, and who have authority to hire/fire or whose recommendations are given particular weight.

Administrative Exemption:
May apply to employees whose primary duty is office or non-manual work directly related to management or general business operations, and whose work includes the exercise of discretion and independent judgment on significant matters.

Professional Exemption:
May apply to learned professionals (requiring advanced knowledge in a field of science or learning) or creative professionals (requiring invention, imagination, originality, or talent).

Computer Employee Exemption:
May apply to certain computer systems analysts, programmers, software engineers, and similar workers meeting specific duties tests and earning either the salary threshold OR at least $27.63/hour (2025 rate).

Outside Sales Exemption:
May apply to employees whose primary duty is making sales or obtaining orders/contracts, and who are customarily and regularly engaged away from the employer’s place of business.

⚠️ Critical Points:

  • Job title alone does not determine exemption status
  • Meeting the salary threshold alone is insufficient—duties test must also be satisfied
  • All elements of the applicable exemption must be met
  • Exemptions are narrowly interpreted

Consult DOL guidance and legal counsel for exemption determinations.

Source: U.S. Department of Labor – https://www.dol.gov/agencies/whd/fact-sheets/17a-overtime

B. Meal and Rest Break Requirements

Indiana’s Break Standards:

According to the Indiana Department of Labor, Indiana does not have state laws requiring employers to provide meal or rest breaks to employees 18 years of age or older. Therefore, federal rules apply.

Federal Break Standards

If an employer chooses to provide breaks, federal law provides:

Short Rest Breaks (5-20 minutes):

  • Generally must be counted as compensable work time
  • Must be paid

Bona Fide Meal Periods (typically 30 minutes or more):

  • May be unpaid if:
    • Employee is completely relieved of duties
    • Employee is free to leave the workstation
    • Employee does not perform any work during the break

Source: U.S. Department of Labor – https://www.dol.gov/agencies/whd/fact-sheets/22-flsa-hours-worked

Requirements for Minors

Indiana law provides specific break requirements for employees under 18 years of age:

For Employees Under Age 18:

  • Must receive one or two rest periods totaling at least 30 minutes
  • Required when scheduled to work 6 or more consecutive hours
  • These breaks are in addition to any meal periods provided

Exemptions from youth break requirements may apply for:

  • Agricultural employment
  • Certain camp, health education, and sectarian-related activities
  • Other categories specified in statute

Source: Indiana Department of Labor – https://www.in.gov/dol/

Application to Remote Workers

Break requirements (where they exist) generally apply to remote workers performing non-exempt work. Specific compliance mechanisms for remote workers may require consultation with legal counsel.

Potential Challenges for Remote Work:

  • Verifying that breaks are actually taken
  • Ensuring workers do not work during unpaid meal periods
  • Documenting compliance in home office settings
  • Handling interruptions during breaks (phone calls, emails, etc.)

Employers may wish to implement clear policies regarding:

  • How to record meal periods and breaks when working remotely
  • Expectations for availability during unpaid meal breaks
  • Procedures for reporting if work was performed during breaks
  • Systems for tracking and verification

Consult employment counsel for developing compliant remote work policies.

Recordkeeping Requirements

Under the FLSA, covered employers must maintain certain records for non-exempt employees:

Required Records Include:

  • Employee’s full name and Social Security number
  • Address and zip code
  • Birth date if younger than 19
  • Sex and occupation
  • Time and day of week when employee’s workweek begins
  • Hours worked each day and total hours worked each workweek
  • Basis on which wages are paid
  • Regular hourly pay rate
  • Total daily or weekly straight-time earnings
  • Total overtime earnings for the workweek
  • All additions to or deductions from wages
  • Total wages paid each pay period
  • Date of payment and pay period covered

Retention Period: Generally 3 years for payroll records

Special Considerations for Remote Workers:

  • May require time-tracking systems suitable for remote use
  • Should document how hours are tracked and verified
  • May need policies on reporting work time accurately

Source: U.S. Department of Labor – https://www.dol.gov/agencies/whd/fact-sheets/21-flsa-recordkeeping

Resources and Guidance

For specific questions about overtime and breaks:

Workers' Compensation Overview for Indiana

Legal Framework

Statutory Authority: Indiana Code Title 22, Article 3
Administering Agency: Indiana Workers’ Compensation Board

Contact Information:

General Coverage Requirements

According to Indiana statutes, workers’ compensation coverage is generally:

Required for: Employers who employ one or more employees

Important Notes:

  • Indiana has a very broad coverage requirement compared to many states
  • Coverage is generally required regardless of the number of employees
  • Certain categories of workers may be excluded or have optional coverage

Source: Indiana Code 22-3-2-9

Categories of Workers

Generally Required to be Covered:

  • Full-time employees
  • Part-time employees
  • Minor employees (under 18)
  • Corporate executives and officers (with some exceptions)
  • Temporary employees hired by the employer

May Have Optional Coverage:

  • Sole proprietors
  • Partners in partnerships
  • Members/managers of LLCs who actively work in the business
  • Local police officers and firefighters (under some conditions)
  • Certain volunteers

Generally Exempt:

  • Real estate agents working as independent contractors
  • Railroad employees covered under Federal Employers’ Liability Act
  • Employees in interstate commerce with access to federal alternatives
  • Certain properly classified independent contractors

⚠️ Note: Coverage determinations can be complex and fact-specific. Employers uncertain about their obligations should consult the Workers’ Compensation Board or legal counsel.

Source: Indiana Code Title 22, Article 3

Indiana’s Workers’ Compensation System

Indiana operates a private insurance system with no state-operated insurance fund.

What this means:

  • Employers must purchase coverage from private insurance carriers
  • No state fund is available as an option
  • Assigned Risk Pool available for employers unable to obtain coverage in the private market
  • Self-insurance is permitted for employers meeting specific requirements

Source: Indiana Workers’ Compensation Board – https://www.in.gov/wcb/

Benefits Generally Available

According to Indiana workers’ compensation statutes, benefits may include:

Medical Treatment:

  • All reasonable and necessary medical care related to the work injury
  • No deductibles or copayments for the injured worker
  • Employer/insurer chooses initial treating physician
  • Worker may change physicians under certain circumstances

Temporary Total Disability (TTD):

  • Two-thirds of the worker’s average weekly wage
  • Subject to state maximum and minimum weekly amounts
  • Paid while employee cannot work due to injury
  • Maximum period of 500 weeks

Temporary Partial Disability (TPD):

  • Two-thirds of the difference between pre-injury wages and current earning capacity
  • Paid when employee can work but at reduced capacity
  • Maximum period of 300 weeks

Permanent Partial Impairment (PPI):

  • Lump-sum compensation for permanent injuries
  • Based on impairment rating determined by physician
  • Calculated using statutory formula

Permanent Total Disability (PTD):

  • Two-thirds of average weekly wage
  • Paid for life-altering injuries that prevent all work
  • Subject to maximum weekly amount

Death Benefits:

  • Funeral expenses (up to statutory maximum)
  • Weekly payments to surviving dependents
  • Calculated based on relationship and dependency

Vocational Rehabilitation:

  • May be available if worker cannot return to previous employment
  • Training or job placement assistance

Weekly Benefit Maximums (as of July 1, 2025):

  • Maximum weekly benefit: $1,278.00
  • (Rates adjust annually based on state average weekly wage)

Source: Indiana Code Title 22, Article 3; Indiana Workers’ Compensation Board

Remote Worker Coverage Considerations

⚠️ COMPLEX AND FACT-SPECIFIC: Coverage of home office injuries involves detailed factual analysis. The following is general background only.

General Legal Standard:
Workers’ compensation in Indiana typically covers injuries that “arise out of and in the course of employment.” Application of this standard to remote workers depends on specific circumstances.

Factors That May Be Considered:

According to case law and general workers’ compensation principles, relevant factors may include:

  • Whether employee was engaged in a work activity at the time of injury
  • Whether injury occurred in a designated work area (home office)
  • Whether injury occurred during work hours
  • Whether the activity was for the employer’s benefit
  • Whether the activity was within the scope of employment
  • Whether the employer authorized or directed the work arrangement

⚠️ Important: This list is not exhaustive and no single factor is determinative. Each claim is evaluated based on its unique facts.

Illustrative Scenarios (For General Understanding Only)

The following scenarios are provided for general educational purposes only. They do not constitute coverage determinations or legal advice. Actual coverage depends on complete factual circumstances and official determination by the Indiana Workers’ Compensation Board.

Scenario Category: Work-Related Activities in Home Office

Example Situation 1:
Employee trips while walking from their home office desk to a filing cabinet to retrieve work documents during regular work hours. The home office is a designated workspace that the employer knows about and has approved.

General Observations:
This type of scenario may share some characteristics with situations that have been found compensable in other contexts:

  • Activity was work-related (retrieving work documents)
  • Occurred in designated work area (approved home office)
  • During work hours
  • In furtherance of employer’s business

However, compensability would depend on complete factual analysis including:

  • Whether the home office met any specific requirements
  • The exact nature of the employer’s involvement in the home office setup
  • Whether the activity was necessary for work
  • Other specific circumstances

This is not a coverage determination. Actual determination would be made by the Indiana Workers’ Compensation Board based on all facts.

Example Situation 2:
Employee develops carpal tunnel syndrome allegedly from extended computer use while performing remote work duties over several months.

General Observations:
Occupational diseases or repetitive stress injuries may potentially be compensable under Indiana law in some circumstances, but determination depends on factors such as:

  • Medical evidence establishing that the condition arose from employment
  • Whether the work involved repetitive activities causing the condition
  • Whether the condition is distinctly work-related
  • Statutory requirements for occupational disease claims

Consult medical professionals and the Workers’ Compensation Board for actual determinations regarding occupational disease claims.

Scenario Category: Personal Activities During Work Time

Example Situation:
Employee is injured while preparing a personal meal in their kitchen during a lunch break when they were completely relieved of all work duties.

General Observations:
Personal comfort activities unrelated to work duties may be less likely to be considered work-related based on general principles. However, specific facts matter, including:

  • Whether employee was on a bona fide meal break
  • Whether the activity served the employer’s interests
  • Whether employer required or encouraged the activity
  • Other relevant circumstances

This is general background only, not a coverage determination.

Every workers’ compensation claim is unique and depends on its specific facts. Coverage determinations are made by the Indiana Workers’ Compensation Board based on complete information. When in doubt, report injuries and consult with the Board and legal counsel.

Reporting and Claim Process

According to Indiana regulations, the general process typically involves:

For Employees:

  1. Report injury to employer promptly (should report as soon as practical)
  2. Seek medical attention from authorized provider
  3. File claim if benefits are disputed or if necessary to protect rights

For Employers:

  1. Report to workers’ compensation insurer immediately
  2. File Form 9 (First Report of Injury) with Workers’ Compensation Board
  3. Deadline: Within 7 days of notice of injury
  4. Provide employee with information about rights and procedures

⚠️ Note: These deadlines are important. Late reporting may affect claim processing. When in doubt, report promptly and seek guidance from the Workers’ Compensation Board.

Source: Indiana Workers’ Compensation Board – https://www.in.gov/wcb/

Penalties for Non-Compliance

According to Indiana law, failure to maintain required workers’ compensation coverage can result in:

  • Class A infraction with penalties up to $10,000
  • Employers may be personally liable for all injury costs if no coverage in place
  • Stop-work orders may be issued for non-compliant employers
  • Potential criminal penalties in some circumstances

Source: Indiana Code 22-3-5-1

Best Practices for Remote Work

The following are general recommendations compiled from various sources. They do not constitute legal requirements and may not be suitable for all situations. Consult legal counsel and safety professionals.

For Employers:

  • Consider providing guidance on ergonomic home office setup
  • Consider documenting remote work locations and arrangements
  • Develop clear injury reporting procedures for remote workers
  • Consider safety training specific to remote work environments
  • Maintain clear policies on work hours and job duties
  • Ensure workers know how to report injuries promptly

For Employees:

  • Consider setting up a dedicated work area
  • Follow employer safety guidelines and ergonomic recommendations
  • Report injuries or work-related conditions promptly
  • Maintain clear boundaries between work and personal activities
  • Keep records of work hours and location
  • Understand the injury reporting process

Resources and Contacts

Indiana Workers’ Compensation Board:

For Legal Advice:

  • Workers’ compensation attorney
  • Indiana State Bar Association Lawyer Referral Service

For Medical Care:

  • Consult with your employer/insurer regarding authorized providers
  • Emergency situations: Seek immediate care, notify employer as soon as possible

Tax Information for Indiana

Indiana State Income Tax

Tax Structure: Indiana uses a flat tax rate that applies to all income levels.

Current Rates:

  • 2025 tax year: 3.0% of adjusted gross income
  • 2026 tax year: 2.95% (scheduled reduction)
  • 2027 and beyond: 2.9% (scheduled reduction)

Statutory Authority: Indiana Code Title 6, Article 3
Source: Indiana Department of Revenue – https://www.in.gov/dor/

Important Notes:

  • These are state rates only; federal income tax applies separately
  • County income taxes apply in addition to state rates (see below)
  • Rates are subject to change through legislative action

County Income Taxes

All 92 Indiana counties impose local income taxes in addition to the state income tax.

General Information:

  • County rates vary from approximately 0.5% to 3%
  • Rates are based on the county of residence, not where you work
  • County rates may be adjusted in January and October of each year
  • Current rates are published by the Indiana Department of Revenue

For Current County Rates:
Visit the Indiana Department of Revenue website or see Departmental Notice #1
Website: https://www.in.gov/dor/

Example (Illustrative Only):
A resident of Marion County (Indianapolis area) in 2025 might pay:

  • State income tax: 3.0%
  • Marion County income tax: ~2.0% (verify current rate)
  • Combined: ~5.0% of Indiana adjusted gross income
  • Plus federal income tax

⚠️ Note: This is a simplified example. Actual rates vary by county and year. Consult current tax tables and a tax professional.

Tax Residency and Remote Workers

General Principles:

According to Indiana Department of Revenue guidance, tax residency generally depends on:

Indiana Residents:

  • Individuals domiciled in Indiana
  • Pay Indiana income tax on all income from all sources, regardless of where earned
  • This includes income earned while working remotely from another state

Part-Year Residents:

  • Individuals who move into or out of Indiana during the tax year
  • Pay Indiana tax only on income earned while an Indiana resident
  • Must report dates of residency on tax return

Nonresidents:

  • Individuals not domiciled in Indiana
  • Pay Indiana tax only on Indiana-source income
  • Generally includes income from services performed in Indiana

Source: Indiana Department of Revenue – https://www.in.gov/dor/

Remote Work Tax Scenarios

Scenario 1: Indiana Resident Working Remotely for Out-of-State Employer

General tax treatment:

  • Individual generally owes Indiana income tax on all income
  • May also owe tax to the state where employer is located (depending on that state’s rules)
  • May be eligible for Indiana credit for taxes paid to other states
  • Should consult tax professional regarding potential double taxation

Scenario 2: Nonresident Working Remotely FROM Indiana for Indiana Employer

General tax treatment:

  • Income may be considered Indiana-source income
  • Individual may owe Indiana income tax on this income
  • Individual’s home state may also tax the income
  • Tax treatment depends on specific facts and both states’ laws

Scenario 3: Indiana Resident Occasionally Traveling to Work in Another State

General tax treatment:

  • Indiana taxes all income as resident
  • Other state may tax income for work performed there (depending on that state’s rules and thresholds)
  • May create need for tax filing in multiple states
  • Credit mechanisms may help avoid double taxation

⚠️ Important: These scenarios are highly simplified. Actual tax treatment depends on:

  • Specific facts and circumstances
  • The other state’s tax laws and reciprocity agreements
  • Nature and amount of income
  • Number of days worked in each location
  • Other factors

Consult a tax professional for guidance on multi-state tax situations.

Reciprocal Agreements

Indiana has reciprocal tax agreements with certain neighboring states. Under these agreements, residents generally pay income tax only to their state of residence, not where they work.

Indiana’s Reciprocal Agreement States:

  • Kentucky
  • Michigan
  • Ohio
  • Pennsylvania
  • Wisconsin

What This Means:

  • An Indiana resident working in one of these states typically pays only Indiana income tax
  • A resident of these states working in Indiana typically pays only their home state tax
  • Proper forms must be filed with employers to implement the exemption

Important Notes:

  • Reciprocal agreements typically apply to wages from employment
  • May not apply to other types of income
  • Specific rules and forms apply for each agreement
  • Remote work may involve additional considerations

Source: Indiana Department of Revenue – https://www.in.gov/dor/

Employer Withholding Obligations

General Requirements:

According to Indiana Department of Revenue guidance:

  • Employers must withhold Indiana state and county income tax from employees’ wages
  • Withholding applies based on where the employee resides
  • Employers must register with the Indiana Department of Revenue
  • Withholding tax must be remitted according to required schedule

Special Considerations for Remote Workers:

  • Employer must determine correct state and county for withholding
  • May need to withhold for multiple states if employees work from various locations
  • Should obtain accurate address information from employees
  • May need to adjust withholding if employee moves

Source: Indiana Department of Revenue – https://www.in.gov/dor/

Filing Requirements

Who Must File Indiana Tax Return:

Generally required to file if:

  • Indiana resident with income over $1,000
  • Part-year resident with Indiana income
  • Nonresident with Indiana-source income

Forms:

  • IT-40: Indiana resident individual income tax return
  • IT-40PNR: Part-year resident and nonresident individual income tax return

Filing Deadline:
Generally April 15 (following the federal deadline)

Source: Indiana Department of Revenue – https://www.in.gov/dor/

Business Taxes

For Employers and Self-Employed:

Indiana imposes various business taxes that may be relevant:

  • Corporate Income Tax: 4.9% (for corporations)
  • Unemployment Insurance Tax: Paid by employers (rates vary)
  • Sales Tax: 7% statewide (for businesses making taxable sales)

Self-Employment Tax:
Self-employed individuals must also pay federal self-employment tax (Social Security and Medicare) in addition to income taxes. This is separate from Indiana state taxes.

Consult a tax professional for guidance on business tax obligations.

Resources for Tax Information

Indiana Department of Revenue:

  • Website: https://www.in.gov/dor/
  • Phone: (317) 232-2240 (Business/Withholding Tax)
  • Customer Service: General tax questions

Internal Revenue Service (IRS):

Professional Tax Advisors:

  • Certified Public Accountant (CPA)
  • Enrolled Agent (EA)
  • Tax Attorney

Anti-Discrimination Laws in Indiana

According to the Indiana Civil Rights Commission, Indiana law prohibits discrimination in employment based on certain protected characteristics.

Indiana Civil Rights Law

Statutory Authority: Indiana Code Title 22, Article 9, Chapter 1
Administering Agency: Indiana Civil Rights Commission

Contact Information:

  • Website: https://www.in.gov/icrc/
  • Phone: (317) 232-2600 or (800) 628-2909
  • Address: Indiana Government Center North, 100 N. Senate Ave., Room N103, Indianapolis, IN 46204

Protected Categories

According to the Indiana Civil Rights Law, employment discrimination is generally prohibited based on:

  • Race
  • Religion
  • Color
  • Sex (including pregnancy)
  • Disability
  • National Origin
  • Ancestry
  • Age (40-75 for age discrimination claims)

Coverage:
The law generally applies to employers with 6 or more employees (15 or more for disability discrimination).

Source: Indiana Civil Rights Commission – https://www.in.gov/icrc/

Types of Prohibited Conduct

According to the Indiana Civil Rights Law and Commission guidance, prohibited conduct may include:

Hiring and Firing:

  • Refusing to hire based on protected characteristic
  • Terminating employment based on protected characteristic

Terms and Conditions:

  • Discriminating in compensation, terms, conditions, or privileges of employment
  • Creating hostile work environment based on protected characteristic

Harassment:

  • Unwelcome conduct based on protected characteristic
  • Conduct that creates intimidating, hostile, or offensive work environment

Retaliation:

  • Taking adverse action against employee for opposing discrimination
  • Retaliating against employee for filing charge or participating in investigation

⚠️ Note: Specific legal standards apply to each type of claim. Consult the Civil Rights Commission or legal counsel for guidance on particular situations.

Application to Remote Workers

Anti-discrimination protections generally apply to remote workers in the same manner as on-site workers:

  • Protected characteristics remain protected regardless of work location
  • Harassment can occur through virtual communications
  • Accommodation obligations may extend to home office situations
  • Retaliation protections apply to remote workers

Employers should ensure that anti-discrimination policies and training extend to remote work environments.

Disability Accommodations

Both federal law (Americans with Disabilities Act) and Indiana law address disability discrimination and reasonable accommodations.

General Principles:

According to EEOC and Indiana Civil Rights Commission guidance:

  • Employers may be required to provide reasonable accommodations to qualified individuals with disabilities
  • Accommodations must be reasonable and not cause undue hardship
  • Interactive process should occur between employer and employee
  • Remote work may itself be a reasonable accommodation in some circumstances

Examples of Potential Accommodations for Remote Workers:

  • Flexible schedule for medical appointments
  • Ergonomic equipment for home office
  • Modified job duties
  • Additional breaks
  • Assistive technology

⚠️ Important: Accommodation determinations are highly individualized and fact-specific. Consult with the Equal Employment Opportunity Commission, Indiana Civil Rights Commission, or legal counsel for guidance.

Sources:

Pregnancy Discrimination

Under Indiana and federal law, discrimination based on pregnancy, childbirth, or related medical conditions is generally prohibited.

General Principles:

  • Pregnant employees generally must be treated the same as other employees similar in their ability to work
  • Temporary disability due to pregnancy may require accommodation similar to other temporary disabilities
  • Employers should consult legal counsel regarding pregnancy accommodation obligations

Filing a Discrimination Claim

Indiana Civil Rights Commission Process:

According to Commission guidance, individuals who believe they have experienced discrimination may:

  1. File a charge with the Indiana Civil Rights Commission
  2. Timeline: Generally must file within 300 days of alleged discriminatory act
  3. Process: Commission investigates and may attempt conciliation
  4. Outcomes: May include settlement, dismissal, or referral for litigation

Dual Filing:
Charges filed with Indiana Civil Rights Commission are generally also filed with the federal EEOC, and vice versa.

Contact for Filing:

  • Indiana Civil Rights Commission: (800) 628-2909
  • EEOC Indianapolis Office: (800) 669-4000

Source: Indiana Civil Rights Commission – https://www.in.gov/icrc/

Federal Anti-Discrimination Laws

In addition to Indiana law, various federal laws prohibit employment discrimination:

  • Title VII of the Civil Rights Act of 1964: Prohibits discrimination based on race, color, religion, sex, and national origin
  • Americans with Disabilities Act (ADA): Prohibits disability discrimination
  • Age Discrimination in Employment Act (ADEA): Prohibits age discrimination (40+)
  • Pregnancy Discrimination Act: Prohibits pregnancy discrimination
  • Genetic Information Nondiscrimination Act (GINA): Prohibits discrimination based on genetic information

These federal laws apply to employers meeting size thresholds (typically 15-20 employees depending on the law).

Source: U.S. Equal Employment Opportunity Commission – https://www.eeoc.gov/

Remote Work Considerations

No Specific Indiana Remote Work Law

As of December 2025, Indiana does not have specific statutes governing remote work arrangements. Remote workers are generally subject to the same employment laws as on-site workers, with application based on location and other factors.

At-Will Employment

Indiana recognizes at-will employment, which means:

General Principle:
Employment relationships may generally be terminated by either employer or employee at any time, for any lawful reason or no reason, unless modified by contract or law.

Application to Remote Workers:

  • At-will doctrine applies equally to remote workers
  • Remote work arrangement itself does not change at-will status
  • Exceptions to at-will employment (contracts, discrimination, retaliation, etc.) apply to remote workers

Important: Various exceptions to at-will employment exist, including:

  • Employment contracts specifying terms
  • Collective bargaining agreements
  • Discrimination and retaliation protections
  • Public policy exceptions

Consult legal counsel regarding employment relationship questions.

Wage Payment and Frequency

According to Indiana law, employers must pay employees at least semi-monthly (twice per month).

General Requirements:

  • Payment must be made no later than 10 days after end of pay period
  • Employers may pay more frequently (weekly, bi-weekly) if desired
  • Final paycheck must be provided on next regular payday after termination

Application to Remote Workers:

  • Same payment frequency requirements apply
  • Payment methods (direct deposit, check, payroll card) must comply with Indiana law
  • Remote workers entitled to same timely payment as on-site workers

Source: Indiana Code 22-2-5

Required Posters and Notices

Employers must display various required labor law posters in the workplace.

For Remote Workers:

Since remote workers may not come to a physical workplace, employers should consider:

  • Providing copies electronically to remote workers
  • Ensuring remote workers have access to required notices
  • Maintaining documentation that notices were provided

Required Posters May Include:

  • Federal minimum wage and FLSA information
  • OSHA safety and health protection
  • Equal Employment Opportunity information
  • Workers’ compensation information (including insurance carrier details)
  • Youth employment laws (if applicable)
  • Other federal and state requirements

Sources:

Equipment and Expense Reimbursement

Indiana Law:
Indiana does not have specific statutes requiring employers to reimburse employees for business expenses or provide equipment.

General Considerations:

  • Reimbursement policies are typically determined by employer policy or contract
  • Some expenses may be required to maintain minimum wage compliance
  • Written policies on equipment and expense reimbursement are recommended
  • Tax implications may exist for reimbursements

Federal Considerations:

  • If expenses reduce effective pay below minimum wage, reimbursement may be required under FLSA
  • Certain expenses may be deductible for self-employed individuals

Consult HR professionals and legal counsel for developing equipment and expense policies.

Data Privacy and Security

While Indiana does not have comprehensive data privacy legislation specifically for employment, employers should consider:

General Best Practices:

  • Secure systems for remote access to company data
  • Clear policies on data security for remote workers
  • Training on cybersecurity and data protection
  • Compliance with industry-specific regulations (HIPAA, financial regulations, etc.)

Federal Laws May Apply:

  • Various federal laws regulate data privacy in specific industries
  • Consult with cybersecurity and legal professionals

Leave Laws Applicable to Remote Workers

Family and Medical Leave Act (FMLA):

According to federal FMLA requirements:

  • Applies to employers with 50+ employees
  • Provides up to 12 weeks unpaid, job-protected leave for qualifying reasons
  • Remote workers who meet eligibility requirements are covered
  • Employee must have worked 1,250 hours in previous 12 months

Indiana-Specific Leave:

School Attendance Leave (Effective July 1, 2025):

  • Indiana Senate Bill 409 requires employers to provide unpaid time off for employees to attend school attendance conferences or case conference meetings for their child
  • Applies to all employers
  • Details on amount of leave and procedures still being clarified

Military Family Leave:

  • Employers with 50+ employees must provide unpaid leave to eligible family members when employee receives active duty orders
  • Up to 10 days per year
  • Job restoration rights apply

Jury Duty:

  • Employers must allow employees time off for jury service
  • No compensation requirement from employer

Voting:

  • Employees entitled to time off to vote (specific requirements apply)

Source: Indiana Code (various sections)

Unemployment Insurance

General Principles:

Indiana’s unemployment insurance system provides temporary benefits to eligible unemployed workers.

Application to Remote Workers:

  • Remote workers are generally covered by unemployment insurance
  • Eligibility based on work history and reason for unemployment
  • Being remote does not affect UI eligibility or benefit amounts
  • Employer’s location and employee’s work location may affect which state’s UI system applies

For Multi-State Remote Work:

  • Complex issues may arise when employee works from different state than employer
  • Consult Department of Workforce Development for guidance

Contact:
Indiana Department of Workforce Development
Website: https://www.in.gov/dwd/

Resources

State Agencies

Indiana Department of Labor

  • Website: https://www.in.gov/dol/
  • Phone: (317) 232-2655
  • TT/Voice: (800) 743-3333
  • Services: Wage and hour, youth employment, workplace safety

Indiana Workers’ Compensation Board

Indiana Department of Revenue

Indiana Department of Workforce Development

Indiana Civil Rights Commission

  • Website: https://www.in.gov/icrc/
  • Phone: (317) 232-2600 or (800) 628-2909
  • Services: Discrimination complaints and information

Federal Agencies

U.S. Department of Labor

Equal Employment Opportunity Commission (EEOC)

Internal Revenue Service (IRS)

Professional Associations

Indiana State Bar Association

Indiana CPA Society

Frequently Asked Questions

Q: Does Indiana have a state minimum wage higher than the federal minimum wage?

A: According to the Indiana Department of Labor, Indiana’s minimum wage is $7.25 per hour, which matches the federal minimum wage. Indiana does not have scheduled increases independent of federal law.

Q: Are employers in Indiana required to provide meal or rest breaks?

A: According to Indiana Department of Labor guidance, Indiana does not require employers to provide meal or rest breaks to adult employees (18 and over). However, breaks are required for employees under 18 who work 6 or more consecutive hours. If employers choose to provide short breaks (typically 5-20 minutes), federal law generally requires they be paid.

Q: Is workers’ compensation insurance required for remote workers in Indiana?

A: Generally, yes. According to Indiana law, employers with one or more employees are typically required to carry workers’ compensation insurance. This requirement generally applies regardless of whether employees work on-site or remotely. However, specific coverage questions for remote workers can be complex and should be discussed with the Indiana Workers’ Compensation Board or legal counsel.

Q: How does Indiana income tax work for remote workers?

A: Indiana uses a flat state income tax (3.0% for 2025) plus county income taxes. For tax purposes:

  • Indiana residents pay Indiana tax on all income regardless of where earned
  • Nonresidents pay Indiana tax only on Indiana-source income
  • Where work is physically performed generally determines source for income tax

Multi-state remote work situations can be complex. Consult a tax professional for guidance on specific circumstances.

Q: Can my employer classify me as an independent contractor if I work remotely?

A: Classification as employee or independent contractor depends on the nature of the working relationship, not the work location. Indiana and federal authorities use various tests that examine factors such as:

  • Control over work methods
  • Financial arrangements
  • Permanency of relationship
  • Other factors

Remote work alone does not make someone an independent contractor. Consult the Indiana Department of Labor or legal counsel for classification questions.

Q: Are Indiana employers required to provide paid sick leave?

A: No. Indiana does not have a state law requiring employers to provide paid sick leave. Sick leave policies are generally determined by employer policy or contract. Federal FMLA may provide unpaid leave for qualifying medical situations.

Q: Does Indiana have laws about working from home policies?

A: Indiana does not have specific statutes governing remote work arrangements. Remote workers are generally subject to the same employment laws as on-site workers. Employers may set their own policies regarding remote work arrangements, subject to applicable employment laws.

Q: Can an employer require me to return to the office if I’ve been working remotely?

A: Generally, yes, unless you have an employment contract specifying remote work. Indiana recognizes at-will employment, which means employers can generally change terms and conditions of employment. However:

  • Changes cannot be discriminatory
  • Disability accommodations may require remote work in some cases
  • Employment contracts may specify work location

Consult legal counsel if you have questions about changes to work arrangements.

Q: Are remote workers entitled to overtime pay?

A: Yes, if they are non-exempt employees. Indiana follows federal FLSA overtime requirements, which generally require 1.5 times regular pay for hours over 40 per week. Work location does not affect overtime eligibility—it depends on job duties, salary, and other factors under FLSA exemption tests.

Q: Do anti-discrimination laws apply to remote workers?

A: Yes. According to the Indiana Civil Rights Commission and EEOC, anti-discrimination laws apply to remote workers in the same manner as on-site workers. Protected characteristics remain protected regardless of work location, and harassment can occur through virtual communications.

Q: What should I do if I’m injured while working from home?

A: According to Indiana Workers’ Compensation Board guidance:

  1. Seek medical attention if needed
  2. Report the injury to your employer promptly
  3. Follow your employer’s injury reporting procedures
  4. Document the circumstances of the injury

Coverage for home office injuries can be complex and depends on specific circumstances. When in doubt, report the injury and consult with the Workers’ Compensation Board.

Q: Does my employer have to reimburse me for internet or equipment costs for remote work?

A: Indiana does not have specific laws requiring employers to reimburse remote work expenses. Reimbursement policies are typically determined by employer policy or employment contract. However, if unreimbursed expenses would reduce your pay below minimum wage, reimbursement may be required under federal FLSA. Consult your HR department about company expense policies.

Q: Can I collect unemployment if I’m fired for refusing to work on-site instead of remotely?

A: Unemployment eligibility depends on the specific circumstances and reason for termination. This is a fact-specific determination made by the Indiana Department of Workforce Development. Consult with the Department or an employment attorney for guidance on specific situations.

Q: Where can I file a complaint about wage and hour violations?

A: Wage and hour complaints can be filed with:

You may also wish to consult with an employment attorney.

Q: How do reciprocal tax agreements affect remote workers?

A: Indiana has reciprocal agreements with Kentucky, Michigan, Ohio, Pennsylvania, and Wisconsin. Under these agreements, residents generally pay income tax only to their state of residence. However, remote work may create additional complexities. For example:

  • An Indiana resident working remotely for an Ohio company would typically pay only Indiana tax
  • Proper withholding forms must be filed
  • Other factors may affect tax treatment

Consult a tax professional for multi-state tax situations.

Others

Ohio
Michigan
Illinois
Kentucky
Wisconsin

Legal Disclaimer: This guide provides general background information only and does not constitute legal, tax, or professional advice. Employment laws are complex and subject to interpretation. Consult licensed legal counsel and official state agencies for guidance specific to your situation.