Indiana — Hiring & Onboarding

Indiana Code § 22-4-10-8 requires all employers to report newly hired and rehired employees to the Indiana New Hire Reporting Center within 20 days of the hire or rehire date. Critically, Indiana adopts the federal definition of a "rehire": an individual who has been separated from employment for at least 60 consecutive days and returns to work for the same employer. This means that if an employee is rehired within 60 consecutive calendar days of separation, they are not considered a "new hire" or "rehire" for Indiana new hire reporting purposes and do not need to be reported again. Only employees returning after a gap of 60 or more days require a new report. Employers who submit new hire information electronically may file in two monthly transmissions (spaced 12–16 days apart).

Failure to comply with Indiana's new hire reporting law may result in civil penalties of up to $25 per unreported employee, or $500 per unreported employee if the failure is due to conspiracy between the employer and employee.

Source: IC 22-4-10-8 Source: Indiana Department of Workforce Development — New Hire Reporting

Indiana Code § 35-38-9-10(b) makes it unlawful discrimination for any employer to deny employment or a professional license to a person based on a conviction that has been expunged or sealed by a court. This prohibition is absolute — once a court orders expungement under Indiana's Second Chance Law (IC 35-38-9), the employer may not use that conviction as a basis for an adverse hiring decision.

Questioning applicants about criminal history

IC § 35-38-9-10(d) specifies that in any application for employment, a license, or other right or privilege, an employer may question a person about a previous criminal record only in terms that exclude expunged convictions or arrests. The statute provides model language: "Have you ever been arrested for or convicted of a crime that has not been expunged by a court?" An employer who asks a broader question (such as "Have you ever been convicted of a crime?") runs afoul of the statute.

Treatment of expunged records

IC § 35-38-9-10(e) provides that a person whose record is expunged shall be treated as if the person had never been convicted of the offense. The applicant may lawfully answer "No" to a properly phrased criminal-history question if the only conviction on record has been expunged. Employers are prohibited from asking about or considering arrest records that have been expunged, pertain to charges that were dropped or dismissed, or did not lead to conviction.

Sealed vs. marked records

Indiana distinguishes between records that are permanently sealed and those that are marked "expunged" but remain publicly visible. Under IC § 35-38-9-6(a)(1), conviction records for misdemeanors, Class D felonies, and Level 6 felonies (or those reduced to misdemeanors) are permanently sealed when expungement is granted; these records may only be accessed by law enforcement officers acting in official duties or someone with a court order. More serious felony convictions, however, are expunged but remain publicly accessible with a clear notation that they have been expunged under IC § 35-38-9-7. Employers may see the marked expungement on a background check for serious felonies, but the non-discrimination rule in IC § 35-38-9-10(b) still applies — the employer may not deny employment based solely on that expunged conviction.

Exceptions for certain positions

IC § 35-38-9-6(a)(2) and (a)(3) carve out narrow exceptions where sealed records may be disclosed even after expungement. Schools may access sealed records for employment purposes and to grant access or admission to contractors or applicants who are likely to have contact with students, regardless of student age (IC § 35-38-9-6(a)(3)(I)). Professional licensing boards and certain regulated industries (such as mortgage lending under 12 U.S.C. § 5101 et seq.) may also access sealed records when permitted by statute or regulation. Employers in these industries should confirm the specific statutory authorization before accessing expunged records.

Intersection with ban-the-box rules

Indiana does not have a statewide ban-the-box law for private employers. Senate Bill 312, signed April 27, 2017, and effective July 1, 2017, prohibits political subdivisions (counties, municipalities, townships) from enacting ordinances that restrict employers from obtaining or using criminal history information during the hiring process to the extent allowed by state or federal law. SB 312 preempted the Indianapolis ban-the-box ordinance for private vendors. However, a gubernatorial executive order issued in May 2017 bans the box for Indiana Executive Branch public-sector jobs; state agencies may not ask about criminal history on initial applications unless a conviction of a particular crime directly relates to the job. The expunged-records prohibition applies equally to public and private employers; even where criminal-history inquiries are permitted early in the hiring process, employers may not inquire into expunged or sealed records.

Source: Indiana Code § 35-38-9-10 (Unlawful discrimination) Source: Indiana Code § 35-38-9-6 (Sealing and access to sealed records) Source: Indiana Code § 35-38-9-7 (Marking of expunged serious felony records) Source: Senate Bill 312 (2017)

Indiana requires all employers to report newly hired or rehired employees to the Indiana New Hire Reporting Center within 20 days of hire (or return-to-work after a separation of at least 60 days), per IC 22-4-10-8 and 42 U.S.C. § 653a. The data elements employers must supply fall into two categories: statutory requirements (set by Indiana law) and additional elements required by the Indiana Department of Workforce Development (DWD) in its administrative guidance.

Statutory required elements (IC 22-4-10-8):

• Employee full name
• Employee address
• Employee Social Security Number
• Employer name
• Employer address
• Employer Federal Employer Identification Number (FEIN)
• Date of hire (first day the employee performs work for pay)

These are the baseline requirements named in Indiana statute and track the federal minimums for state new hire directories (IC 22-4-10-8)(b)(2).

Additional DWD-requested elements (administrative guidance):

• Employee date of birth
• Employee's eligibility for medical insurance coverage
• Employee's current job title
• Employee's primary Standard Occupational Classification (SOC) code
• Starting compensation (pay amount) and pay rate type (e.g., hourly, annual)

These fields appear in the Indiana DWD's New Hire Reporting instructions and online reporting system but are not mandated by statute. The DWD requests these elements for administrative and programmatic reasons—such as supporting wage reporting and benefit eligibility—but failure to include them may impact processing rather than trigger statutory penalties.

Reporting method and penalties: Indiana encourages electronic filing through the Indiana New Hire Reporting Center (https://in-newhire.com/), but also provides for alternative submission by mail or fax as detailed on the DWD website. Failure to report can result in a $25 per-employee penalty, or $500 where employer and employee conspire not to report (IC 22-4-10-8)(f).

Source: IC 22-4-10-8 Source: Indiana Department of Workforce Development — New Hire Reporting Employer Instructions

Indiana employers are required, by state administrative policy, to report newly engaged independent contractors to the Indiana New Hire Reporting Center—mirroring the reporting duty for employees. This requirement is not found directly in Indiana Code § 22-4-10-8 (the statute cites only "employees"), but is set out in the Indiana Department of Child Services Child Support Bureau’s Employer Handbook, which states:

> "Report all newly hired or rehired employees or independent contractors within twenty (20) days of their date of hire." (2024 Indiana Employer Handbook, p. 13)

Scope of contractors covered

• The Handbook does not impose a minimum dollar threshold or restrict the requirement by entity type—any individual engaged as an independent contractor to perform services directly for the business must be reported, regardless of contract value.
• The 20-day reporting deadline applies to both employees and independent contractors.

Source of authority and compliance risk

• The legal obligation to report independent contractors is created by agency policy, not by the statutory text of IC § 22-4-10-8. Indiana’s Employer Handbook is the primary, controlling guidance for practitioners.
• Federal sources (such as the U.S. Office of Child Support Enforcement’s summary) may indicate that Indiana does not require independent contractor reporting, but Indiana’s own agency guidance prevails for employers operating in Indiana.

Practice tip for multi-state employers Not all states require independent contractor reporting—always check each state’s official new hire guidance before assuming the rule applies elsewhere.

Source: Indiana Department of Child Services Child Support Bureau Employer Handbook, p. 13 (2024)

Form I-9 Verification Requirement (Federal Law, Applies in Indiana) All Indiana employers must comply with the federal Immigration Reform and Control Act (IRCA), which requires verification of every new hire’s identity and authorization to work in the United States by completing Form I-9 (Employment Eligibility Verification Form). The I-9 must be completed for every employee hired after November 6, 1986, regardless of citizenship or national origin. Both the employee and employer must complete sections of the I-9: the employee fills out Section 1 no later than the first day of employment, and the employer examines documentation and completes Section 2 within three business days of the employee’s first day of employment. Employers must retain I-9s for either three years after the date of hire or one year after the date employment ends, whichever is later.

E-Verify — Indiana-Specific Requirements There is no blanket state law requiring private-sector employers in Indiana to use E-Verify for new hires. However, certain public employers and contractors may be subject to E-Verify requirements under Indiana Code § 22-5-1.7, which mandates that:

• State and local government agencies (including public universities) must enroll in and use E-Verify for all new hires.
• State contractors (and certain subcontractors) are also required to use E-Verify for employees hired to perform work under a state contract.
• Private employers in Indiana are not required under state law to use E-Verify, unless they are state contractors or are otherwise obligated by federal law (e.g., federal contracts containing a FAR E-Verify clause).

Employers not covered by these Indiana mandates may choose to use E-Verify voluntarily, but the only universal requirement is completion and retention of Form I-9 as specified under federal law.

Key References:

• I-9 requirement: 8 U.S.C. § 1324a; 8 C.F.R. § 274a.2
• E-Verify in Indiana: IC § 22-5-1.7

Source: USCIS — Form I-9 Overview Source: 8 U.S.C. § 1324a (IRCA) Source: 8 C.F.R. § 274a.2 Source: Indiana Code § 22-5-1.7 (E-Verify requirements for public contracts)

Wage payment frequency: Indiana law requires private employers to pay employees at least semi-monthly or biweekly. Wages must be paid no later than 10 business days after the pay period in which they were earned, except for certain employees (such as those engaged in professional, executive, or administrative capacities who may be paid monthly). Employers must designate regular paydays and notify employees of this schedule at the time of hire. (Indiana Code § 22-2-5-1).

Permissible wage deductions and pay statements: Employers must provide employees with an itemized statement of hours worked, total wages paid, and all wage deductions. Indiana Code § 22-2-6-2 allows deductions for items such as:

• taxes required by law,
• insurance premiums,
• charitable contributions (with written authorization),
• union dues (if authorized),
• court-ordered garnishments,
• and other deductions expressly authorized in writing by the employee for their benefit (e.g., uniforms, tools). Deductions not specified by law or not authorized in writing by the employee are prohibited.

Onboarding — Indiana WH-4 form requirement: At the start of employment, every Indiana employee must complete an Indiana WH-4 (Employee’s Withholding Exemption and County Status Certificate). This form determines the correct state and county tax withholding based on the employee’s exemptions and residence. Employees must update their WH-4 with any change of status (such as address or change in number of exemptions) and employers must retain the WH-4 in their files for each active employee. There is no requirement to submit the WH-4 to the Department of Revenue unless requested.

Source: Indiana Code § 22-2-5-1 (Wage payment frequency) Source: Indiana Code § 22-2-6-2 (Permissible deductions) Source: Indiana Department of Labor, Minimum Wage Law Employer Guide, p. 4 Source: Indiana Department of Revenue — New and Small Business Handbook (WH-4)