Indiana employers would pay workers at least twice a month

Employers would pay workers at least twice a month or every two weeks. The rule covers employers doing business in Indiana and their employees. Workers would not have to request this pay schedule. This pay rule would take effect July 1, 2026.

Paycheck deduction agreements may benefit employers for goods they sell, and later agreements would not need an anytime cancellation clause. These rules cover written agreements to deduct pay for purposes listed in the bill. The worker must sign the agreement, and the employer must agree in writing. Deductions for employer-sold goods require the worker’s written request and must be for goods sold for the worker’s use or benefit. Agreements signed before July 1, 2026, must let workers cancel at any time by giving written notice. These provisions would take effect July 1, 2026; the cancellation clause rule applies to agreements signed on or after that date.

Workers could sue over improper amounts deducted from their pay. This covers employees whose employers deduct an improper amount under the paycheck deduction rules. The worker must use the minimum wage or unpaid wage law that applies to the claim. This provision would take effect July 1, 2026.

Workers would notify the state labor office and their employer before filing certain unpaid wage lawsuits. This covers lawsuits for wages owed when a job ends or work stops during a labor dispute. The worker must file a notice with the labor office and send it to the employer by certified mail. The labor office must approve the lawsuit or not respond within 60 days. No separate wage claim under the process named in the bill may already have started for the same pay. A lawsuit must be brought within two years after the claim arises, or within three years after it arises if the violation was willful.

Employers who knowingly charge their workers above market price for goods or supplies would commit a Class C infraction, a legal violation. The rule covers goods and supplies an employer sells to its own employees. The employer must knowingly charge more than the market price. This rule would take effect July 1, 2026.