Indiana amends wage, overtime rules
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Thursday, June 20, 2019

Indiana amends wage, overtime rules

By Payroll and Entitlements Editorial Staff

Indiana has passed a law which revises outdated language and which provides that the requirement to pay an employee who works over 40 hours in a workweek at least 150% of the employee’s regular rate for the overtime hours does not apply to an air carrier to the extent that the hours worked over 40 in a workweek are not required by the air carrier but rather are arranged through a voluntary agreement between employees to trade or reassign their scheduled hours. (Section 22-2-2-4 is amended by P.L. 38 (S. 512), L. 2019, effective April 18, 2019. IN ¶15-44,008a.)

The law relating to assignment of wages has also been amended with regard to the cost of uniforms and tools. Effective May 1, 2019, a wage assignment may be made for the purpose of paying for the purchase of, rental, or use of uniforms, shirts, pants, or other job-related clothing. In addition, the law is expanded to allow for a wage assignment to cover the purchase of equipment or tools necessary to fulfill the duties of employment. The assignments may not exceed the direct cost paid by an employer to an external vendor for those items. The total amount of wages subject to assignment for the cost of uniforms and tools provided by the employer may not exceed the lesser of: (1) $2,500 per year; or (2) 5% of the employee’s weekly disposable earnings. Except as provided under federal regulations (29 CFR Parts 1910, 1915, 1917, 1918, and 1926), an employee shall not be charged or subject to a wage assignment for protective equipment, including personal protective equipment identified under the federal regulations. All deductions made from employee wages before May 1, 2019, for the rental of uniforms, shirts, pants, or other job-related clothing, pursuant to an agreement that meets the requirements for an assignment of wages are legal, provided the amount deducted was either (1) retained by the employer and credited upon an indebtedness owing to the employer by the employee; or, (2) paid by the employer; no action shall be brought or maintained against the employer to recover from the employer the amount so retained or paid.

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