Indiana's final paycheck rule — same deadline for all separations
Indiana Code 22-2-9 (the Indiana Wage Payment Act), as confirmed by the Indiana Department of Labor, establishes a single deadline for all separated employees: wages must be paid on the next regular payday following the date of separation. Indiana does not distinguish between involuntary and voluntary separations for this purpose.
| Separation type | Deadline |
|---|---|
| Discharged or laid off | Next regular payday (IC 22-2-9) |
| Voluntary resignation | Next regular payday (IC 22-2-9) |
Liquidated damages for bad-faith nonpayment
IC 22-2-9 imposes a significant penalty for bad-faith nonpayment of final wages: 2× liquidated damages (double the unpaid amount), plus reasonable attorney's fees and court costs. This penalty provision took effect July 1, 2015. A court must determine whether the failure to pay was in bad faith; this calculator does not make that determination.
Worked example
What this calculator does not determine
- The amount of wages, commissions, bonuses, or accrued vacation owed.
- Whether nonpayment was in bad faith for purposes of the liquidated-damages penalty.
- Whether a collective-bargaining agreement or employment contract changes the applicable deadline.
Sources and verification
The final-pay rule and penalty are confirmed from the Indiana Department of Labor, Wage and Hour Division (in.gov/dol). The governing statute is Indiana Code § 22-2-9. The 2× liquidated-damages provision is explicitly referenced in the research findings (Batch B, Indiana section) as effective July 1, 2015.