Pay Frequency and Wage-Payment Lag Requirements in Indiana
At a glance
| Governing law | Indiana Frequency of Wage Payments chapter, Ind. Code §§ 22-2-5-0.5 to -3 |
|---|---|
| Who the recurring-pay rule covers | Persons and entities doing business in Indiana and their employees, subject to the chapter's express worker/industry exemptions (§§ 22-2-5-1, -1.1, -3) |
| Minimum pay frequency | At least semimonthly or biweekly, with employee choice under current law (§ 22-2-5-1(a)) |
| Maximum pay-period length or structure | Semimonthly or biweekly structure; no separate day-count cap on the earnings period (§ 22-2-5-1(a)) |
| Latest payday after work is performed | Payday must cover wages earned through a date no more than 10 business days before payment (§§ 22-2-5-0.5, -1(b)) |
| Regular payday designation and changes | No general advance designation, posting, or schedule-change notice rule in this chapter |
| Classification and industry exceptions | Exempt: farmers/agriculture/horticulture, correctional-facility offenders, and salaried employees eligible for federal overtime (§§ 22-2-5-1.1, -3) |
| Enforcement and remedies | Civil recovery of unpaid wages + mandatory attorney's fees/costs; additional 2× wages if nonpayment was not in good faith (§ 22-2-5-2) |
Requirements one by one
The employee chooses semimonthly or biweekly pay
Ind. Code § 22-2-5-1(a) says covered employers must pay each employee at least semimonthly or biweekly, if requested. The request qualifier makes the employee's choice part of the current statutory sentence.
Each payday may lag no more than ten business days
Ind. Code § 22-2-5-1(b) requires the payment to include all wages earned through a date no more than ten business days before payday. Section 22-2-5-0.5 excludes Saturdays, Sundays, and legal holidays from that count.
For example, the ten-business-day clock is not simply a fourteen-calendar-day rule when a legal holiday falls inside the interval. The statute also permits payment at shorter intervals.
The exemptions are classification-specific
Ind. Code § 22-2-5-3 exempts farmers and those in agriculture or horticulture, plus criminal offenders working in a state or privately operated correctional facility. Section 22-2-5-1.1 separately exempts salaried employees who are eligible for overtime under the federal Fair Labor Standards Act.
That salaried exemption should be read as written. It is not a general exemption for every salaried employee or every employee exempt from federal overtime.
A successful wage suit carries fees and possible double damages
An employee may recover unpaid wages in a court with jurisdiction. The court must award reasonable attorney's fees and court costs. If the employer was not acting in good faith, the court must also award liquidated damages equal to twice the wages due.
What trips people up
Indiana's lag is measured in business days, not calendar days. Weekends and the legal holidays covered by the statutory definition do not count.
The frequency sentence is also unusual because the semimonthly-versus-biweekly choice belongs to the employee under current law. An employer should not read the two listed schedules as an unrestricted unilateral choice.
Common questions
Does Indiana permit monthly payroll for an ordinary covered employee?
No. Section 22-2-5-1(a) requires at least semimonthly or biweekly pay for an employee within the chapter.
Does the ten-business-day rule mean payday must occur every ten days?
No. It is a lag rule: each payday must bring wages current through a date no more than ten business days earlier. Frequency is separately governed by the semimonthly or biweekly requirement.
Are agricultural workers covered by this chapter?
No. Farmers and those engaged in agriculture and horticulture are expressly exempt.
Statutes and sources
- Ind. Code § 22-2-5-0.5. Business-day definition. Official 2026 chapter PDF (accessed July 12, 2026).
- Ind. Code § 22-2-5-1. Semimonthly/biweekly frequency and ten-business-day lag. Official 2026 chapter PDF (accessed July 12, 2026).
- Ind. Code §§ 22-2-5-1.1 and 22-2-5-3. Salaried-overtime, agriculture, horticulture, and correctional-offender exemptions. Official 2026 chapter PDF (accessed July 12, 2026).
- Ind. Code § 22-2-5-2. Unpaid wages, attorney's fees, costs, and bad-faith liquidated damages. Official 2026 chapter PDF (accessed July 12, 2026).
Source links
Every statute quoted above, linked, with the date we checked it.
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