The United States either set up its own state minimum wage or go with the Federal minimum wage law. Indiana is one of the states that go with the Federal minimum wage. The Federal minimum wage has been adopted by Indiana which happens to be $7.25 per hour. These wages are planned at the state level considering the customer price index.
Indiana Minimum Wage Law
Employers follow the Indiana Minimum wage law while paying their employees. It is advised to pay the wage per house. In the case of overtime, the pay rate is 1.5 times the normal wage. Indiana Minimum Wage Law also commands employers to prepare a statement that has the record of the working hours, pay rate, overtime, and deductions.
Indiana Minimum Wage Poster
The Indiana Minimum wage poster is important for the Federal labor law as it has devised working hours for the laborers. The Fair Labour Standards Act calls for this wage poster so that the employees are aware of the overtime regulations and wages. As Indiana’s income comes from agricultural, farming, and mining industries, it is important for the employees to know the regulations devised for overtime and labor forces.
Indiana has been ranked 35th nationwide when economic growth was evaluated for the states. Circumstances are changing in Indiana if we consider economic grounds. The wage was increased by $0.6 in 2008. Since then there has been no rise in the wage.
The average minimum wage in Indiana is $7.25 per hour. Although there are some exceptions when we are considering the minimum wage per hour. These exceptions vary with the nature of the employees.
- Tipped employees have a $2.13 minimum wage. $5.12 tip is granted to the tipped employees to make a total of 7.25 per hour.
- College or school students get 85% of Indiana’s minimum wage per hour if they are part of a work program.
- If an employee is new he or she receives $4.25 an hour for the first 90 days. It is usually known as the training wage.
These wage policies make a balance in society.
Bill Passed by the Indiana General Assembly
Indiana General Assembly has passed a bill for raising the wage per hour. It is proposed that the wage may be increased to $10 per hour with effect from 30 June 2021. This raise has been planned statewide. It may rise to $13 by 2022 and to 15 by 2023. President Joe Biden is trying his best for this legislation to be approved. But the demand is still on hold. Although things are expected in the favor of Indiana as 20 states have expected a rise in their wages per hour.
Changing Dynamics in Indiana
Since Bill has been passed for expecting a rise in the wages, the businessmen in Indiana may have to strategize considering the dynamics in the field of finance. This calls for certain objectives which must be adopted by the people of Indiana. These objectives may include
- Better Hiring strategies must be made by the businessmen. As the wages per hour may change this year, intelligent businessmen should lay out the policies and strategies for the number of employees they have to hire this year.
- Setting objectives and consultation can result in better business growth
- It is advised to consult business liaisons or Local chambers of commerce to have an idea of the changing dynamics in Indiana. These consultations can help in knowing the changing wages policies in Indiana.
- Employee turnover can be expensive as the income policy is going to change with time. It is therefore advised to set a standard strategy to avoid employee turnover.
- The changing economic dynamics call for the updated technology.
- It is also advised to automate payroll.
- Employers must get an EIN (employer identification number) issued in Indiana.
- Employers should consult their lawyers about the changes in the bill passed in the Indiana Assembly
Factors affecting the Changes in Wages in Indiana
Customer price index
It accounts for the price of an average weighted basket of market goods used for household purposes. As the prices vary in the market, the strategists have to advise the government to enhance the wages. Due to the pandemic, the Customer price index has increased.
Figures have shown that 11.9% of the population in Indiana has lived below the poverty lines. The poverty threshold is below the annual budget in Knox (a city in Indiana). Hence the government and the policymakers devise the wages keeping in mind the poverty threshold.
Labour Force survey
Data is gathered on Indiana’s official labor force and the wages are recommended accordingly. Employment rate and inflation also determine the minimum wage per hour in Indiana.
Gross regional Domestic product GDPR
It is the measure of the size of a region’s economy. It gives us an idea about the economy and needs of the people of Indiana. Policies are devised considering the GDPR of Indiana.