Indiana Statewide Rule

Indiana Minimum Wage Preemption of Local Wages

Some RestrictionsApplies statewide across Indiana (2026)

Key Facts

Wage Preemption Codified: Wage preemption codified at IC 22-2-2-10.5
State Minimum Wage: State minimum wage of $7.25 mirrors federal
No Higher Local: No higher local minimum wages allowed
Public Contract Exceptions: Public contract exceptions remain limited
Statewide Uniformity For: Statewide uniformity for private employers

Last verified: September 5, 2026Source: State of Indiana

Summary

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.

Sec. 10.5. (a) As used in this section, "unit" has the meaning set forth in IC 36-1-2-23. (b) Unless federal or state law provides otherwise, a unit may not: (1) establish; (2) mandate; or (3) otherwise require; a minimum wage that exceeds the minimum wage required by section 4 of this chapter or by the federal minimum hourly wage prescribed by 29 U.S.C. 206(a)(1). (c) Except as provided in IC 5-16-7.2, this section does not limit the authority of a unit to establish wage rates in a contract to which the unit is a party.

Source: State of IndianaView official code

Full Breakdown

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.

Violations & Penalties

Local wage mandates above state law are unenforceable; affected employers can challenge them in court, and municipalities risk civil litigation.

Frequently Asked Questions

Can Indianapolis or other cities raise the local minimum wage?

No. IC 22-2-2-10.5 preempts political subdivisions from requiring private employers to pay wages above state or federal law.

What is Indiana's minimum wage?

$7.25 per hour, matching the federal minimum wage under IC 22-2-2-4. The state has not raised it independently of federal law.

Sources

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