Minimum Wage in Indiana

Author: R Stell

Minimum Wage

Issue Overview: A variety of proposals to increase Indiana's minimum wage were introduced during the last legislative session. Some of the proposals would have eliminated the training wage, while others would have provided for annual, inflationary increases of the minimum wage.

HB 1027 was passed by both the House and Senate and signed by Gov. Mitch Daniels. The bill originally called for Indiana's minimum wage to increase to $7.50 by Sept. 1, 2008. However, due to strong opposition from NFIB and other allies in the business community, the legislation was amended to hold Indiana's minimum wage equal to the federal minimum wage. This change prevented Indiana from having a higher minimum wage than most of our neighboring Midwestern states. The amended language also prevented a scenario under which Indiana employers would have seen the minimum wage rate change on six different occasions in two years due to conflicting step increases in both the federal law and the original language in HB 1027.     

NFIB Position: NFIB members have consistently stated their opposition to minimum-wage increases on both the state and federal level. While many members note that they pay more than the minimum wage, there is a philosophical belief that the government should not be engaged in setting wages. Instead, NFIB members believe that the free and open marketplace should dictate wages paid.

Issue Status: HB 1027 passed the Indiana House of Representatives by a vote of 71-29 on Jan. 30. The Senate passed the amended bill by a vote of 45-3 and Gov. Daniels signed it on May 4, 2007.

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