Indiana law preempts cities and counties from setting a local minimum wage above the state and federal floor of $7.25, with limited exceptions for public contracts.
Indiana Code 22-2-2-10.5 prohibits political subdivisions from establishing, mandating, or otherwise requiring an employer to pay wages or benefits exceeding state or federal law. The Indiana minimum wage under IC 22-2-2-4 mirrors the federal minimum wage of $7.25 per hour. Cities such as Indianapolis cannot enact higher minimum wages or impose wage requirements beyond state law on private employers. Limited exceptions exist for public works prevailing wages and certain public contracts, but private employer wage floors are uniform statewide.
Local wage mandates above state law are unenforceable; affected employers can challenge them in court, and municipalities risk civil litigation.
See how Mishawaka's minimum wage preemption rules stack up against other locations.
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