Indiana: Pay Frequency and Wage-Payment Lag Requirements

verified against the statute 2026-07-12 6 statute sources

The short answer

Indiana generally requires employees to be paid at least semimonthly or biweekly, with current law giving the employee the choice between those schedules. Each payday must cover all wages earned through a date no more than ten business days before payment, subject to express exemptions for agriculture, correctional offenders, and specified salaried employees eligible for federal overtime.

Ask Ezel about your situation

This is the general rule in Indiana. Ezel applies current Indiana law to your specific facts and answers with citations to the statutes.

Governing lawIndiana Frequency of Wage Payments chapter, Ind. Code §§ 22-2-5-0.5 to -3
Who the recurring-pay rule coversPersons 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 frequencyAt least semimonthly or biweekly, with employee choice under current law (§ 22-2-5-1(a))
Maximum pay-period length or structureSemimonthly or biweekly structure; no separate day-count cap on the earnings period (§ 22-2-5-1(a))
Latest payday after work is performedPayday 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 changesNo general advance designation, posting, or schedule-change notice rule in this chapter
Classification and industry exceptionsExempt: farmers/agriculture/horticulture, correctional-facility offenders, and salaried employees eligible for federal overtime (§§ 22-2-5-1.1, -3)
Enforcement and remediesCivil recovery of unpaid wages + mandatory attorney's fees/costs; additional 2× wages if nonpayment was not in good faith (§ 22-2-5-2)

Compare this rule across all 50 states + DC →

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.

Ind. Code § 22-2-5-0.5 · accessed 2026-07-12
Ind. Code § 22-2-5-1(a) · accessed 2026-07-12
Ind. Code § 22-2-5-1(b) · accessed 2026-07-12
Ind. Code § 22-2-5-1.1 · accessed 2026-07-12
Ind. Code § 22-2-5-2 · accessed 2026-07-12
Ind. Code § 22-2-5-3 · accessed 2026-07-12
This page is general legal information about recurring state-law pay schedules while employment continues, not legal advice about your payroll or wage claim. Employee classification, industry rules, collective-bargaining terms, commissions, and the way a pay period is defined can change the result. Separate rules govern final wages when employment ends, minimum wage, overtime, deductions, and wage statements. Verified against the official statute or regulation text on the date shown; confirm current law or consult the state labor agency or a licensed attorney before relying on it.

Get the answer for your situation

You just read how Indiana handles this in general. Ezel applies current Indiana law to your facts and answers your specific question, with citations.

Opens in Ezel Pro. Every answer cites the authority it relies on.