WAGE AND HOUR DEMAND LETTER
State of Indiana
Indiana Wage Payment Statute / Wage Claims Statute / FLSA Claims
[ATTORNEY/FIRM LETTERHEAD]
[Firm Name]
[Address Line 1]
[City, Indiana ZIP]
Tel: [Phone Number]
Fax: [Fax Number]
[Attorney Email]
[Indiana Attorney Number]
VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND VIA EMAIL TO: [recipient_email]
[Date]
[Employer Contact Name]
[Title]
[Company Legal Name]
[Company Address]
[City, State ZIP]
Copy to:
[Company General Counsel, if known]
[Registered Agent, if different]
Re: Wage and Hour Violations - [Client Full Name]
[and All Similarly Situated Employees - if collective/class action contemplated]
Demand for Unpaid Wages Under Indiana and Federal Law
CONFIDENTIAL SETTLEMENT COMMUNICATION PURSUANT TO FRE 408 AND IND. R. EVID. 408
Dear [Mr./Ms./Mx. Last Name]:
This firm has been retained by [Client Full Name] ("our client") to pursue claims for unpaid wages against [Company Legal Name] ("[Company Short Name]" or "the Company") arising from violations of the Indiana Wage Payment Statute, Ind. Code Section 22-2-5-1 et seq., the Indiana Wage Claims Statute, Ind. Code Section 22-2-9-1 et seq., and the Fair Labor Standards Act ("FLSA"), 29 U.S.C. Section 201 et seq.
Please direct all further communications regarding this matter to our office.
I. INDIANA-SPECIFIC LEGAL FRAMEWORK
A. Applicable Wage and Hour Law
Indiana's minimum wage matches the federal minimum wage. Indiana does not have a state overtime law, so overtime claims must be pursued under the FLSA. However, Indiana's Wage Payment Statute provides significant penalties for failure to pay wages timely.
Key Legal Framework:
| Category | Indiana/Federal Requirement | Citation |
|---|---|---|
| Minimum Wage | $7.25/hour | Ind. Code Section 22-2-2-4 |
| Overtime | 1.5x regular rate after 40 hours/week (FLSA only) | 29 U.S.C. Section 207 |
| Tipped Minimum | $2.13/hour (with tip credit) | Ind. Code Section 22-2-2-4(d) |
| Payment Frequency | At least bi-weekly or twice per month | Ind. Code Section 22-2-5-1 |
B. Statute of Limitations
| Claim Type | Limitations Period | Citation |
|---|---|---|
| Indiana Wage Claims | 2 years | Ind. Code Section 34-11-2-1 |
| Indiana Contract (written) | 10 years | Ind. Code Section 34-11-2-11 |
| FLSA (standard) | 2 years | 29 U.S.C. Section 255(a) |
| FLSA (willful) | 3 years | 29 U.S.C. Section 255(a) |
C. Indiana Wage Payment Requirements
Wage Payment Timing:
- Ind. Code Section 22-2-5-1: Wages must be paid at least bi-weekly or twice per month on regular paydays
- Ind. Code Section 22-2-5-1: Final wages due on next regular payday after separation
- Ind. Code Section 22-2-9-2: Employee must make written demand for unpaid wages
Payroll Deductions:
- Ind. Code Section 22-2-6-2: Deductions permitted only with written authorization
- Must be for lawful purpose
- Cannot deduct for cash shortages (except where employee signs acknowledgment of shortage responsibility)
D. Enforcement Mechanisms
Administrative:
- Indiana Department of Labor, Wage and Hour Division
- File complaint: 402 W. Washington Street, Room W195, Indianapolis, IN 46204
- Phone: (317) 232-2655
- Administrative investigation available
Private Right of Action:
- Ind. Code Section 22-2-5-2: Private action for wage payment violations
- Ind. Code Section 22-2-9-4: Private action for wage claims
- FLSA: 29 U.S.C. Section 216(b) provides private right of action
E. Indiana Penalty Provisions
| Remedy | Standard | Citation |
|---|---|---|
| Back Wages | Full unpaid amount | Ind. Code Section 22-2-5-2 |
| Late Payment Penalty | 10% per business day (capped at 2x wages) | Ind. Code Section 22-2-5-2 |
| Liquidated Damages | Available under Ind. Code 22-2-9-4 | Ind. Code Section 22-2-9-4 |
| Attorney's Fees | Recoverable | Ind. Code Section 22-2-5-2 |
| Treble Damages | Available for wage claim violations | Ind. Code Section 22-2-9-4 |
F. Tip Credit Rules (Indiana)
Indiana follows federal tip credit rules:
| Requirement | Standard |
|---|---|
| Cash wage minimum | $2.13/hour |
| Tip credit maximum | $5.12/hour |
| Total must equal | $7.25/hour minimum |
| Notice required | Yes |
| Tip pooling | Valid only among customarily tipped employees |
II. INTRODUCTION AND SUMMARY OF CLAIMS
Our client was employed by [Company Short Name] as a [Job Title] from [Start Date] to [End Date / Present], working at [Work Location(s)] in Indiana. During this employment, [Company Short Name] violated Indiana and federal wage laws by:
[ ] Failing to pay the minimum wage of $7.25 per hour
[ ] Failing to pay overtime compensation at 1.5 times the regular rate for hours worked over 40 per week (FLSA)
[ ] Misclassifying our client as exempt from overtime when [he/she/they] should have been classified as non-exempt
[ ] Misclassifying our client as an independent contractor when [he/she/they] was an employee entitled to wage protections
[ ] Failing to pay for all hours worked, including:
[ ] Off-the-clock work before/after shifts
[ ] Uncompensated meal periods during which work was performed
[ ] Time spent on required pre-shift or post-shift activities
[ ] Travel time that should have been compensated
[ ] Training time
[ ] On-call time
[ ] Failing to pay wages bi-weekly as required by Ind. Code Section 22-2-5-1
[ ] Failing to pay final wages timely upon separation
[ ] Making unlawful deductions from wages
[ ] Unlawful tip pooling or tip credit violations
These violations entitle our client to penalties and treble damages under Indiana law.
III. FACTUAL BACKGROUND
A. Employment Relationship
| Category | Details |
|---|---|
| Employee Name | [Client Full Name] |
| Job Title(s) | [Title(s)] |
| Dates of Employment | [Start Date] to [End Date / Present] |
| Work Location(s) | [Address(es) in Indiana] |
| Primary Duties | [Describe job duties] |
| Rate of Pay | $[Amount] per [hour/week/year] |
| Classification | [Exempt / Non-Exempt / Independent Contractor] |
| Pay Frequency | [Weekly / Bi-weekly / Semi-monthly / Monthly] |
| Supervisor(s) | [Name(s) and Title(s)] |
B. Hours Worked
Our client regularly worked the following schedule:
Typical Weekly Schedule:
| Day | Scheduled Hours | Actual Hours Worked | Unpaid Time |
|---|---|---|---|
| Monday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Tuesday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Wednesday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Thursday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Friday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Saturday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Sunday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Weekly Total | [X hours] | [X hours] | [X hours] |
Average overtime hours per week not compensated at 1.5x rate: [X hours]
C. Specific Wage Violations
[Detail specific violations as applicable - off-the-clock work, misclassification, tip violations, etc.]
IV. LEGAL ANALYSIS
A. Coverage Under Indiana and Federal Law
Indiana Wage Payment Statute Coverage:
Ind. Code Section 22-2-5-1 applies to all employers in Indiana. [Company Short Name] is a covered employer.
FLSA Coverage:
[Company Short Name] is subject to the FLSA because it is an enterprise engaged in commerce with annual gross sales of at least $500,000. 29 U.S.C. Section 203(s)(1)(A). [Alternatively, describe individual coverage.]
B. Minimum Wage Violation (Ind. Code Section 22-2-2-4)
Indiana law requires covered employers to pay employees at least $7.25 per hour. By [describe violation], [Company Short Name] failed to pay our client the required minimum wage.
C. Overtime Violation (29 U.S.C. Section 207)
The FLSA requires employers to pay non-exempt employees overtime at a rate of 1.5 times the regular rate for all hours worked over 40 in a workweek. Note: Indiana does not have a state overtime law.
Our client worked an average of [X hours] per week. [Company Short Name] failed to pay overtime compensation for an average of [X overtime hours] per week.
D. Wage Payment Violations (Ind. Code Section 22-2-5)
[Company Short Name] violated Indiana's Wage Payment Statute by:
- [Failing to pay wages bi-weekly]
- [Failing to pay final wages on next regular payday]
- [Making unauthorized deductions]
E. Indiana Wage Claim Statute (Ind. Code Section 22-2-9)
Our client has made written demand for wages owed as required by Ind. Code Section 22-2-9-2. Failure to pay entitles our client to treble damages under Ind. Code Section 22-2-9-4.
F. Penalties and Liquidated Damages
Under Ind. Code Section 22-2-5-2, our client is entitled to 10% of wages per business day they remain unpaid, up to double the wages owed.
Under Ind. Code Section 22-2-9-4, our client may be entitled to treble damages for failure to pay wages after demand.
V. DAMAGES CALCULATION
A. Indiana and Federal Damages
Relevant Period: [Date - 2/3 years prior] to [End Date / Present]
Total Weeks in Period: [X weeks]
1. Unpaid Overtime (FLSA)
| Period | Avg. OT Hours/Week | Regular Rate | OT Rate (1.5x) | Unpaid OT/Week | Weeks | Total |
|---|---|---|---|---|---|---|
| [Period 1] | [X] | $[X.XX] | $[X.XX] | $[X.XX] | [X] | $[Amount] |
| Unpaid Overtime Subtotal | $[Amount] |
2. Unpaid Minimum Wage
| Period | Hours Below MW | Shortfall/Hour | Weeks | Total |
|---|---|---|---|---|
| [Period] | [X] | $[X.XX] | [X] | $[Amount] |
| Minimum Wage Subtotal | $[Amount] |
3. Off-the-Clock Work
| Activity | Hours/Week | Rate | Weeks | Total |
|---|---|---|---|---|
| [Pre-shift work] | [X] | $[X.XX] | [X] | $[Amount] |
| Off-the-Clock Subtotal | $[Amount] |
4. Indiana Late Payment Penalty
| Wages Owed | Business Days Late | 10% Daily Penalty | Total (capped at 2x) |
|---|---|---|---|
| $[Amount] | [X days] | 10% | $[Amount] |
B. Summary of Damages
| Category | Amount |
|---|---|
| Unpaid Wages | $[Amount] |
| Indiana Penalty (10%/day, max 2x) | $[Amount] |
| or Indiana Treble Damages (3x) | $[Amount] |
| or FLSA Liquidated Damages (2x) | $[Amount] |
| Pre-Judgment Interest | $[Amount] |
| Attorney's Fees (estimated) | $[Amount] |
| Costs (estimated) | $[Amount] |
| TOTAL INDIVIDUAL DAMAGES | $[Amount] |
C. Collective/Class Action Exposure
| Category | Individual | Estimated Class Size | Total Exposure |
|---|---|---|---|
| Unpaid Wages | $[Amount] | [X employees] | $[Amount] |
| Penalties/Damages | $[Amount] | [X employees] | $[Amount] |
| Collective/Class Exposure | $[Amount] |
VI. SETTLEMENT DEMAND
Based on the foregoing, we demand that [Company Short Name] pay $[Settlement Demand Amount] to settle all claims of [Client Full Name].
This demand includes:
- Unpaid wages
- Statutory penalties under Indiana law
- Pre-judgment interest
- Attorney's fees and costs incurred to date
This demand will remain open for twenty-one (21) days from the date of this letter, expiring on [Response Deadline Date].
VII. RESPONSE AND LITIGATION
If we do not receive a satisfactory response by the deadline, we will file suit in:
[ ] United States District Court for the Northern District of Indiana
[ ] United States District Court for the Southern District of Indiana
[ ] Indiana State Court, [County]
The Complaint will seek:
1. Unpaid minimum wages under Ind. Code Section 22-2-2-4 and 29 U.S.C. Section 206
2. Unpaid overtime under 29 U.S.C. Section 207
3. Wage payment violations under Ind. Code Section 22-2-5
4. Late payment penalties under Ind. Code Section 22-2-5-2
5. Treble damages under Ind. Code Section 22-2-9-4
6. Attorney's fees and costs
7. FLSA collective action certification
VIII. DOCUMENT PRESERVATION
LITIGATION HOLD NOTICE
[Company Short Name] must immediately preserve all documents and ESI relevant to these claims, including:
[ ] Time and attendance records
[ ] Payroll records and pay stubs
[ ] Personnel files and job descriptions
[ ] Employee handbooks and policies
[ ] Scheduling records
[ ] Communications regarding pay practices
[ ] Training materials
[ ] Prior Indiana DOL investigations
[ ] Tip records (if applicable)
Spoliation of evidence will result in severe sanctions.
IX. CONFIDENTIALITY
This letter is a confidential settlement communication protected under Federal Rule of Evidence 408 and Indiana Rule of Evidence 408.
We look forward to your prompt response.
Sincerely,
[Attorney Name]
[Title]
[Firm Name]
[Indiana Attorney No.]
Enclosures:
[ ] Authorization to Represent
[ ] Pay stubs / wage statements (sample)
[ ] Time records (if available)
cc: [Client Name] (via email)
INDIANA-SPECIFIC PRACTICE NOTES
[ ] Minimum Wage Matches Federal: Indiana's $7.25 minimum wage equals the federal minimum
[ ] No State Overtime Law: Indiana does not have a state overtime statute; use FLSA for overtime claims
[ ] 10% Daily Penalty: Ind. Code Section 22-2-5-2 provides 10% per business day penalty for late wages (capped at 2x wages)
[ ] Written Demand Required: Ind. Code Section 22-2-9-2 requires written demand before filing wage claim action
[ ] Treble Damages Available: Ind. Code Section 22-2-9-4 provides treble damages for wage claims
[ ] Federal Court Venue:
- Northern District (Hammond, Fort Wayne, South Bend, Lafayette): Northern Indiana
- Southern District (Indianapolis, Evansville, Terre Haute, New Albany): Southern Indiana
[ ] State Courts: Circuit and Superior Courts in each county
[ ] Indiana DOL Contact: Wage and Hour Division
- Address: 402 W. Washington Street, Room W195, Indianapolis, IN 46204
- Phone: (317) 232-2655
- Website: in.gov/dol
[ ] At-Will Employment: Indiana follows at-will doctrine; consider FLSA retaliation claims