Indianapolis cannot enact a higher minimum wage than the state floor of $7.25 per hour, which matches the federal rate. IC 22-2-2-10.5 explicitly preempts local wage ordinances. Tipped employees may be paid $2.13 with tip credit.
Indiana minimum wage is $7.25 per hour (IC 22-2-2-4) — identical to the federal Fair Labor Standards Act rate and unchanged since 2009. IC 22-2-2-10.5, enacted in 2013, expressly preempts any city, county, or township from setting a minimum wage higher than the state floor. Indianapolis attempts to raise wages locally would be void under this statute. Tipped employees may be paid $2.13 per hour as long as tips raise total compensation to $7.25 (IC 22-2-2-4(c)). Marion County hospitals, schools, and city-funded contractors may have higher rates through prevailing-wage rules or collective bargaining, but private employers face only the state floor.
Private-sector violations are limited to paying below $7.25 per hour or failing to ensure tipped employees reach $7.25 with tips. Indiana Department of Labor enforces with back-pay orders and civil penalties.
See how Indianapolis's minimum wage preemption rules stack up against other locations.
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