Indiana law requires employers to pay a terminated employee's final paycheck on the next regularly scheduled payday following separation, whether the employee was fired, laid off, or resigned. If the employer does not know where to send the final paycheck after a resignation, the employee can send a demand, and the employer then has 10 days to pay after receiving that demand.

Key points about Indiana final paycheck laws and timing:

• Timing: Final wages must be paid on the next scheduled payday or within 10 business days of the regularly scheduled pay date if a demand is made. Some sources mention payment within three working days or the next payday, whichever is sooner, but the prevailing rule is the next scheduled payday.

• Contents: Employers must pay all earned wages. However, payment of unused vacation time is not required by law unless specified in an employment contract or company policy.

• Method: Employers are advised to issue the final paycheck in the usual manner, but the state does not mandate a specific location or method for payment.

• Penalties: Failure to pay final wages timely can result in penalties including payment of the wages owed, employee costs, attorney’s fees, and potentially double damages if the employer acted in bad faith.

• Additional requirements: Employers must provide itemized pay statements showing hours worked, pay rate, and deductions.

If an employee believes their final paycheck was wrongfully withheld or delayed, they can file a complaint with the Indiana Department of Labor, Wage and Hour Division. However, enforcement may require legal action through the courts.

In summary, Indiana mandates payment of final wages by the next scheduled payday after separation, with a 10-day window if a demand is made, but does not require payout of unused vacation unless contractually obligated. Employers must comply to avoid penalties.