If an employer in Indiana fails to pay the last paycheck, the following legal steps and considerations apply:

1. Timing for Final Paycheck
   Indiana law requires that the final paycheck be paid on or before the next regularly scheduled payday after the employee’s termination or resignation. There is no specific requirement for immediate payment upon termination, but the paycheck must not be delayed beyond the next scheduled payday.

2. Contents of the Final Paycheck
   The final paycheck must include all wages earned during the most recent pay period, including commissions, bonuses, and accrued sick or vacation pay if applicable.

3. If the Employer Fails to Pay on Time
   If the employer does not provide the final paycheck within ten (10) business days after the employee requests it, the employee may:

   • File a wage claim with the Indiana Department of Labor (IDOL), Wage and Hour Division. The department can investigate but does not have authority to force payment; resolution may require legal action.
   • Seek private legal counsel to pursue a lawsuit for unpaid wages.

4. Legal Remedies and Damages
   Under Indiana Code § 22-2-5-2, if an employer is found to have acted in bad faith by refusing to pay wages clearly owed, the employer may be liable to pay twice the amount of the unpaid wages plus legal costs. Bad faith generally means a willful refusal to pay.
   If there is no bad faith, the employer is typically required only to pay the owed wages.

5. Filing a Lawsuit
   Employees can file a lawsuit to recover unpaid wages. Such lawsuits often arise from disputes over eligibility for certain pay types (e.g., overtime, bonuses). The lawsuit can compel payment and potentially additional damages if bad faith is proven.

6. Unclaimed Paychecks
   If a paycheck is unclaimed, employers cannot simply void it or keep the funds. Instead, unclaimed wages are subject to Indiana’s unclaimed property laws and must be reported to the state.

Summary of Steps for an Employee:

• Confirm the final paycheck was not received by the next scheduled payday.
• Request payment from the employer in writing.
• If unpaid after 10 business days, file a wage claim with the Indiana Department of Labor.
• If unresolved, consider consulting an attorney to file a lawsuit for unpaid wages and possible damages.

This process ensures employees in Indiana have a clear path to recover their last paycheck and seek additional remedies if the employer acts in bad faith.