Hiring New Employees in Indiana: Legal Guidelines for Employers

Develop a clear job description that outlines the position's responsibilities, required qualifications, and essential functions. Ensure the description complies with Indiana employment laws and does not contain discriminatory language. This will help attract qualified candidates and serve as documentation for the position requirements.

Advertise the position through appropriate channels such as job boards, company website, social media, or recruitment agencies. Ensure job postings comply with anti-discrimination laws and focus on job-related qualifications.

Create or update your employment application form to collect necessary information from candidates. In Indiana, ensure your application complies with 'ban-the-box' regulations for public employers, which restrict asking about criminal history on initial applications. Private employers may still ask about criminal history but should ensure questions are job-related and consistent with business necessity.

Interview qualified candidates and select the best fit for the position. Ensure interview questions are job-related and non-discriminatory. Document the selection process and reasons for hiring decisions to protect against potential discrimination claims.

Draft an offer letter that includes position title, start date, compensation, benefits, and employment conditions. In Indiana, which is an at-will employment state, consider including language that confirms the at-will nature of employment unless you intend to create a contract for a specific term.

If the position requires an employment contract beyond at-will employment, draft a comprehensive agreement that includes terms of employment, compensation, benefits, termination conditions, and other relevant provisions. In Indiana, employment contracts must comply with state contract law and employment regulations.

Draft a non-disclosure agreement to protect your company's confidential information and trade secrets. In Indiana, NDAs are generally enforceable if they are reasonable in scope and duration and protect legitimate business interests.

If necessary for the position, draft a non-compete agreement. In Indiana, non-compete agreements are enforceable if they are reasonable in terms of time, geography, and scope, and necessary to protect legitimate business interests. Consider whether this is truly necessary as courts scrutinize these agreements carefully.

Create a form for the candidate to authorize background checks. In Indiana, employers must comply with the Fair Credit Reporting Act (FCRA) when conducting background checks, which requires disclosure and authorization from the candidate before conducting the check.

Perform background checks, reference checks, and any job-specific screenings (drug tests, skills assessments, etc.) as permitted by Indiana law. Ensure all screenings are consistently applied to all candidates in similar positions and are job-related.

Prepare the federal I-9 form to verify the employee's identity and authorization to work in the United States. This form must be completed within 3 business days of the employee's first day of work. Employers must physically examine documents that establish identity and employment authorization.

Provide the federal W-4 form for the employee to complete, which determines federal income tax withholding. This form should be completed before the first payroll is processed.

Provide the Indiana state tax withholding form (WH-4) for the employee to complete. This form determines state income tax withholding and must be completed before processing the first payroll.

Create a form for employees to authorize direct deposit of their paychecks. In Indiana, employers cannot require direct deposit as the only method of payment unless certain conditions are met, so this should be presented as an option.

Create a form to collect emergency contact information from the new employee. This information is essential for workplace safety and emergency response.

Prepare forms for the employee to enroll in company benefits such as health insurance, retirement plans, and other optional benefits. Include information about eligibility periods and enrollment deadlines.

Ensure your employee handbook is up-to-date with current Indiana employment laws and company policies. The handbook should cover workplace policies, benefits, conduct expectations, and complaint procedures. Have the new employee acknowledge receipt of the handbook.

Complete and submit the Indiana New Hire Reporting Form to the Indiana Department of Workforce Development within 20 days of the employee's hire date. This is required by federal and state law for child support enforcement purposes.

If this is your first employee in Indiana, register with the Indiana Department of Workforce Development for unemployment insurance. All employers in Indiana are required to pay unemployment insurance taxes if they have at least one employee.

Secure workers' compensation insurance coverage for your employee. In Indiana, all employers with at least one employee are required to carry workers' compensation insurance, with very few exceptions.

Post all required federal and Indiana state employment law posters in a conspicuous location accessible to all employees. These include minimum wage, workplace safety, anti-discrimination, and other mandatory notices.

Provide comprehensive orientation for the new employee, covering company policies, safety procedures, benefits, and job-specific training. Document the orientation process and any training provided.

Ensure your payroll system is set up to properly withhold federal, state, and local taxes. In Indiana, employers must withhold state income tax and, in some localities, county income tax. Verify compliance with Indiana's minimum wage ($7.25/hour, which matches the federal rate).

Establish a schedule for regular performance reviews. While not legally required in Indiana, regular documented performance reviews help with employee development and can provide documentation if employment issues arise later.