How to Hire a New Employee in Indiana (2026)
Reviewed by DocDraft Legal Team · Indiana · Last updated 2026-05-18
Hiring a new employee in Indiana runs on a stack of state-specific rules layered on top of federal employment law. In Indiana, $7.25 per hour (federal floor; Indiana does not exceed federal); tipped cash $2.13; youth training wage $4.25 first 90 days. The statutory anchor is Ind. Code section 22-2-2-4. New-hire reporting under federal PRWORA goes to the state agency with the report due employers must report within 20 days of an employee's hire or re-hire date. This guide walks the Indiana-specific items: minimum wage, new-hire reporting, unemployment-insurance registration, workers' compensation coverage, E-Verify posture, and the at-will doctrine as Indiana courts apply it.
Key Considerations
Pay rate is the first regulated number in a Indiana employment relationship. $7.25 per hour (federal floor; Indiana does not exceed federal); tipped cash $2.13; youth training wage $4.25 first 90 days. See Ind. Code section 22-2-2-4.
Three risk-side rules round out the Indiana compliance picture. Workers' compensation coverage: 1 E-Verify posture: A state agency or political subdivision shall use the E-Verify program to verify the work eligibility status of all employees of the state agency or political subdivision hired after June 30, 2011. At-will employment posture: If there is no definite or ascertainable term of employment, then the employment is at-will, and is presumptively terminable at any time, with or without cause, by either party.
New-hire reporting is the federally-mandated first administrative step. Indiana requires the report Employers must report within 20 days of an employee's hire or re-hire date. On the unemployment side, the employer must also register for state UI tax via the state agency
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Relevant Documents
In Indiana the hire-side document stack runs from federal Form I-9 through Form W-4 (federal) and the Indiana state withholding addendum (where applicable), then the Indiana new-hire report (Employers must report within 20 days of an employee's hire or re-hire date.), then workers' compensation enrollment paperwork (1). The state wage statute is Ind. Code section 22-2-2-4.
Employee Handbook
A comprehensive document outlining company policies, procedures, work rules, benefits, and expectations. Provides important information to new employees and serves as a reference for all staff.
Employment Application Form
A standardized form for collecting information from job applicants including work history, education, skills, and references. This helps employers make informed hiring decisions and serves as documentation of the hiring process.
Employment Contract
A comprehensive legal agreement between employer and employee detailing all terms and conditions of employment including duties, compensation, benefits, termination procedures, and confidentiality requirements.
Employment Offer Letter
A formal document outlining the terms of employment including position, salary, benefits, start date, and other conditions. This establishes clear expectations and serves as evidence of the employment agreement.
Non-Compete Agreement
A contract that restricts an employee from working for competitors or starting a competing business for a specified period after employment ends. Enforceability varies significantly by state.
Non-Disclosure Agreement
Protects your confidential information, trade secrets, and intellectual property that you may need to share with the manufacturer during the course of your relationship. This should be signed before detailed discussions begin.
Relevant Laws
Indiana New Hire Reporting Law
Employers in Indiana must report all newly hired employees to the Indiana Department of Workforce Development within 20 days of hire. This reporting helps with child support enforcement and is required under both federal and state law.
Indiana Minimum Wage Law
Indiana follows the federal minimum wage of $7.25 per hour. Employers must comply with this minimum wage requirement for most employees, with some exceptions for tipped employees, certain student workers, and other specific categories.
Indiana Employment Discrimination Law
The Indiana Civil Rights Law prohibits employment discrimination based on race, religion, color, sex, disability, national origin, or ancestry. Employers with six or more employees must comply with these anti-discrimination provisions.
Indiana Worker's Compensation Law
Most Indiana employers must provide worker's compensation insurance coverage for employees. This insurance covers medical expenses and lost wages for employees who suffer work-related injuries or illnesses.
Indiana Unemployment Insurance Law
Employers in Indiana must register with the Department of Workforce Development and pay unemployment insurance taxes. These taxes fund benefits for eligible workers who lose their jobs through no fault of their own.
Federal I-9 Employment Eligibility Verification
All employers in Indiana must verify the identity and employment authorization of each person hired by completing Form I-9. This must be completed within 3 business days of the employee's first day of work.
Indiana's E-Verify Requirements
State agencies and certain state contractors in Indiana are required to use E-Verify to confirm employment eligibility. While not mandatory for all private employers, many choose to use this system in addition to I-9 verification.
Regional Variances
Major Cities in Indiana
As the state capital and largest city, Indianapolis has additional local ordinances affecting employers. Employers must comply with the Indianapolis Equal Opportunity Ordinance which prohibits discrimination based on categories beyond state law, including sexual orientation, gender identity, and veteran status. The city also has specific requirements for certain city contractors regarding minimum wage and benefits.
Fort Wayne has local ordinances that may affect employers, including a Human Relations Commission that enforces anti-discrimination provisions that are more comprehensive than state law. Employers should check with the Fort Wayne Metropolitan Human Relations Commission for compliance requirements.
South Bend has a Human Rights Ordinance that prohibits discrimination in employment based on sexual orientation and gender identity, which extends beyond Indiana state law protections. Employers in South Bend should be aware of these additional protected classes when making hiring decisions.
County-Specific Regulations
Marion County (which includes Indianapolis) has its own Human Relations Equal Opportunity Advisory Board and may have specific reporting requirements for larger employers. Businesses with county contracts may face additional compliance obligations regarding equal employment practices.
Lake County has its own Human Relations Commission with enforcement authority. Employers in this county should be aware that local ordinances may provide additional protections for employees beyond state requirements, particularly regarding discrimination complaints.
Monroe County (which includes Bloomington) has a Human Rights Ordinance that prohibits discrimination based on sexual orientation and gender identity. Employers in this county need to ensure compliance with these expanded protections when hiring and managing employees.
Suggested Compliance Checklist
Complete the state new-hire report
On hire days after startingIndiana's Employers must report within 20 days of an employee's hire or re-hire date.
Activate an employer UI tax account in Indiana
Before first payroll days after startingRegister the new employer with the relevant state unemployment-insurance tax agency before first payroll.
Gather withholding documentation at hire: federal Form W-4 plus the Indiana state withholding form
Before first hire days after startingIndiana's state-tax addendum applies wherever the state operates a separate withholding regime.
Run the federal Form I-9 process at hire
On hire days after startingThe employee completes section 1 on or before day one; the employer completes section 2 within 3 business days. Retain per 8 CFR section 274a.2.
Confirm workers' compensation coverage status
On hire days after startingIn Indiana, 1
Check the Indiana E-Verify statute on public and private employer use
Before hire days after startingA state agency or political subdivision shall use the E-Verify program to verify the work eligibility status of all employees of the state agency or political subdivision hired after June 30, 2011.
Memorialize the at-will status in Indiana employment documents
Before first hire days after startingIf there is no definite or ascertainable term of employment, then the employment is at-will, and is presumptively terminable at any time, with or without cause, by either party.
Display the Indiana mandatory employment posters at the worksite
Before hire days after startingUnemployment Insurance Poster; IOSHA Poster; Indiana Minimum Wage Poster; Teen Work Hour Restrictions poster; Worker's Compensation Notice; Equal Opportunity is the Law Poster
| Task | Description | Document | Days after starting |
|---|---|---|---|
| Complete the state new-hire report | Indiana's Employers must report within 20 days of an employee's hire or re-hire date. | - | On hire |
| Activate an employer UI tax account in Indiana | Register the new employer with the relevant state unemployment-insurance tax agency before first payroll. | - | Before first payroll |
| Gather withholding documentation at hire: federal Form W-4 plus the Indiana state withholding form | Indiana's state-tax addendum applies wherever the state operates a separate withholding regime. | - | Before first hire |
| Run the federal Form I-9 process at hire | The employee completes section 1 on or before day one; the employer completes section 2 within 3 business days. Retain per 8 CFR section 274a.2. | - | On hire |
| Confirm workers' compensation coverage status | In Indiana, 1 | - | On hire |
| Check the Indiana E-Verify statute on public and private employer use | A state agency or political subdivision shall use the E-Verify program to verify the work eligibility status of all employees of the state agency or political subdivision hired after June 30, 2011. | - | Before hire |
| Memorialize the at-will status in Indiana employment documents | If there is no definite or ascertainable term of employment, then the employment is at-will, and is presumptively terminable at any time, with or without cause, by either party. | employment-offer-letter | Before first hire |
| Display the Indiana mandatory employment posters at the worksite | Unemployment Insurance Poster; IOSHA Poster; Indiana Minimum Wage Poster; Teen Work Hour Restrictions poster; Worker's Compensation Notice; Equal Opportunity is the Law Poster | - | Before hire |
Frequently Asked Questions
In Indiana, the E-Verify posture for private employers is: A state agency or political subdivision shall use the E-Verify program to verify the work eligibility status of all employees of the state agency or political subdivision hired after June 30, 2011. Federal contractors with a FAR E-Verify clause must still use E-Verify regardless of state law.
Indiana requires the new-hire report to be filed Employers must report within 20 days of an employee's hire or re-hire date. The federal anchor for the report itself is the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996.
$7.25 per hour (federal floor; Indiana does not exceed federal); tipped cash $2.13; youth training wage $4.25 first 90 days The statutory anchor is Ind. Code section 22-2-2-4.
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