Employment Law Attorney Serving Central Indiana

Indiana Employment Law — The Basics

Indiana is an at-will employment state. Under the at-will doctrine, an employer may generally terminate an employee at any time, for any reason, or for no stated reason at all — and an employee may resign at any time for any reason. The at-will rule sounds broad, but it has important exceptions: termination for an illegal reason — including discrimination based on protected characteristics, retaliation for protected activity, or violation of a specific contractual commitment — remains unlawful regardless of at-will status.

Employment law involves an interplay of federal statutes, federal agency oversight, Indiana state statutes, and common law. Navigating that framework — understanding which law applies, what the deadlines are, and what process must be followed before a lawsuit can be filed — is the essential starting point for any employment dispute.

Federal Anti-Discrimination Laws

The major federal employment discrimination statutes each cover a different category of protected status and are enforced by the Equal Employment Opportunity Commission (EEOC):

• Title VII of the Civil Rights Act of 1964: Prohibits discrimination in hiring, firing, promotion, compensation, and other terms and conditions of employment on the basis of race, color, religion, sex, and national origin. Applies to employers with 15 or more employees.
• Americans with Disabilities Act (ADA): Prohibits discrimination against qualified individuals with disabilities and requires employers to provide reasonable accommodations unless doing so would cause undue hardship. Applies to employers with 15 or more employees.
• Age Discrimination in Employment Act (ADEA): Prohibits discrimination against employees and applicants aged 40 and older. Applies to employers with 20 or more employees.
• Family and Medical Leave Act (FMLA): Entitles eligible employees to up to 12 weeks of unpaid, job-protected leave per year for qualifying health and family reasons. Applies to employers with 50 or more employees.
• Fair Labor Standards Act (FLSA): Establishes federal minimum wage, overtime pay, and child labor standards. Most Indiana employers are covered by the FLSA regardless of size.

The EEOC Charge Process — Administrative Exhaustion

Before filing a lawsuit under Title VII, the ADA, or the ADEA, an employee must first file a charge of discrimination with the EEOC and receive a Notice of Right to Sue. This requirement — called administrative exhaustion — is a mandatory prerequisite to federal litigation. Skipping it generally bars the federal lawsuit.

Indiana is a deferral state, meaning the EEOC coordinates with the Indiana Civil Rights Commission (ICRC). Because Indiana is a deferral state, the deadline to file an EEOC charge is 300 days from the date of the discriminatory act — longer than the 180-day deadline in non-deferral states. However, 300 days is not unlimited. The deadline runs from the specific act of discrimination, not from the date employment ended. Once a Right to Sue letter is issued, the lawsuit must be filed within 90 days.

Workplace Harassment

Title VII (and its counterparts) prohibit harassment based on protected characteristics when the conduct is severe or pervasive enough to create a hostile work environment. Not every offensive comment or isolated incident rises to the legal threshold — courts look at the totality of the conduct, its frequency, its severity, whether it was physically threatening, and its effect on the employee's ability to do their job. Sexual harassment — including quid pro quo harassment (where submission to harassment is made a condition of employment) — is also covered. Employers have potential liability for harassment by supervisors, and can be liable for co-worker harassment if they knew or should have known and failed to act.

Retaliation

Federal and Indiana law prohibit employers from retaliating against employees who engage in protected activity. Protected activity includes filing an EEOC charge, making an internal complaint about discrimination or harassment, requesting FMLA leave, reporting a wage violation, participating in an investigation or proceeding, or opposing any practice made unlawful by an employment statute. Adverse employment actions — termination, demotion, reduction in pay or hours, reassignment with significantly different responsibilities, or actions that materially affect terms and conditions — can constitute retaliation. Retaliation claims are among the most commonly filed claims with the EEOC.

Indiana Wage Laws

Indiana has two primary wage statutes. The Indiana Wage Payment Act (IC 22-2-5) requires employers to pay wages to current employees on regular pay days. The Indiana Wage Claims Act (IC 22-2-9) governs wage claims by terminated employees. Under these statutes, an employer who fails to pay wages owed may be liable for the unpaid wages plus liquidated damages of up to double the unpaid amount, plus attorney's fees. Claims under these statutes must go through the Indiana Department of Labor or be filed in court within the applicable statute of limitations.

Employer-Side Representation

Hammond Legal represents employers as well as employees. Employers facing EEOC charges must respond to the agency's requests for information and may participate in the agency's mediation process. An employer's response to an EEOC charge establishes a record that will be significant if litigation follows. Employers also benefit from legal counsel when reviewing and updating workplace policies, responding to employee complaints, conducting or overseeing internal investigations, and evaluating separation agreements.

Frequently Asked Questions