Indiana’s laws regarding unclaimed paychecks and escheatment are designed to ensure that employees receive their rightful compensation and that unclaimed property is properly managed by the state.
Final and Unclaimed Paychecks
- Final Paycheck Timing: Indiana requires that final paychecks be paid on the next scheduled payday after termination. There are no specific rules on how the final paycheck must be delivered.
- Recordkeeping: Employers must retain records of the names and last known addresses of payees for ten years after reporting unclaimed wages to the state.
- Reporting Unclaimed Wages: Employers must report and remit unclaimed wages annually. The report for unclaimed wages is typically due before November 1 each year for wages unclaimed as of June 30 of that year.
- Contacting Ex-Employees: Indiana law does not specify how many attempts an employer must make to contact ex-employees regarding unclaimed paychecks, but best practices suggest making reasonable efforts before reporting to the state.
Escheatment and Unclaimed Property
- Reporting Requirements: All holders of unclaimed property, including employers, must report abandoned or unclaimed property to the state annually. The deadline for most holders is November 1, except for insurance companies, which must report by May 1. Reports must be submitted electronically in the NAUPA format.
- Negative Reports: Indiana does not statutorily require filing a negative report if there is no property to report, but it is expected as a best practice.
- Due Diligence: For property valued at $50 or more, holders must send due diligence notifications to the owner’s last known address by first-class mail or email (unless the email is believed to be invalid). These notifications must be sent between 60 and 180 days before filing the unclaimed property report.
- State’s Role: The state secures unclaimed funds in a custodial capacity, makes efforts to locate owners, and pays claims. If funds remain unclaimed for 25 years, they are permanently absorbed into the General Fund and can no longer be claimed.
- Dormancy Periods: For compensation for personal services (such as paychecks), the dormancy period is one year after the compensation becomes payable.
Summary Table
| Requirement | Details |
|---|---|
| Final Paycheck Timing | Next scheduled payday after termination |
| Recordkeeping | 10 years after reporting to state |
| Reporting Deadline | November 1 (most holders), May 1 (insurance companies) |
| Due Diligence Notification | Required for property ≥ $50, 60–180 days before reporting |
| Dormancy Period (Paychecks) | 1 year after compensation becomes payable |
| Unclaimed Funds | Held by state for 25 years, then absorbed into General Fund |
These laws ensure that unclaimed wages and property are properly managed and that employees and owners have opportunities to claim what is rightfully theirs.
🔴 Immediate Actions (Today or ASAP)
- Check your final paycheck status: Confirm if you have received your final paycheck by the next scheduled payday after your termination, as required by Indiana law.
- Gather all paycheck documents: Collect pay stubs, employment termination notices, and any communications regarding your final pay.
- Note your last known employer contact info: Keep handy the employer’s HR or payroll contact details for follow-up.
🟡 Short-Term Steps (This Week)
- Contact your former employer: Politely request your final paycheck if it hasn’t been received. Use email or certified mail to create a paper trail. Example email:
"Dear [HR/Payroll], I am writing to confirm the status of my final paycheck following my termination on [date]. Indiana law requires payment by the next scheduled payday. Please advise when I can expect payment. Thank you." - Document all communications: Save copies of emails, letters, and notes from phone calls.
- Check Indiana’s unclaimed property website: Visit the Indiana Treasurer’s unclaimed property site (indianaunclaimed.gov) to see if your paycheck has been reported as unclaimed property.
🟢 Strategic Follow-Up (Next 2-4 Weeks or Longer)
- If paycheck remains unpaid: File a complaint with the Indiana Department of Labor or the Indiana Attorney General’s Consumer Protection Division.
- Claim unclaimed wages: If your paycheck has been turned over to the state as unclaimed property, file a claim through the Indiana unclaimed property website to recover your wages.
- Keep records for 10 years: Maintain all documents related to your final pay and any communications for at least 10 years.
- Consider legal advice: If you face resistance or complex issues, consult a labor law attorney or legal aid for help enforcing your rights.
Your Legal Rights
- Right to timely final paycheck: Indiana law mandates your final paycheck must be paid on the next scheduled payday after termination.
- Right to unclaimed wages: If your employer cannot deliver your paycheck, they must report and remit unclaimed wages to the state, which holds the funds for 25 years.
- Right to claim unclaimed property: You can claim your unclaimed wages from the state at any time within 25 years before funds are absorbed into the General Fund.
- Right to due diligence notice: Employers must try to contact you before reporting unclaimed wages if the amount is $50 or more.
Where to Get Help
- Indiana Department of Labor: For wage complaints and questions. Website: in.gov/dol | Phone: (800) 437-9136
- Indiana Attorney General Consumer Protection Division: To report employer violations. Website: in.gov/attorneygeneral/consumer-protection | Phone: (317) 232-6330 or (800) 382-5516
- Indiana Unclaimed Property Division: To search and claim unclaimed wages. Website: indianaunclaimed.gov | Phone: (317) 232-2227
- Legal Aid Organizations: For free or low-cost legal advice. Examples include Indiana Legal Services (indianalegalservices.org)
Documents to have ready: Employment contract, pay stubs, termination notice, correspondence with employer, any unclaimed property notices.
Emergency resource: If you are facing urgent financial hardship due to unpaid wages, contact local social services or community organizations for immediate support.
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