Employment or Job Termination Package - Indiana 2025

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The state of Indiana doesnt require employers to provide a severance package, so take a close look at the agreement and local labor laws before signing it in order to be comfortable with the terms presented.
Some states, however, may require immediate payment or payment within a specific time period. In Indiana, for either voluntary or involuntary termination the final paycheck must be paid on the next regular payday.
If the employer fails to provide the employee with his/her paycheck within ten (10) business days, Indiana law provides that an employee may file a wage claim with the Indiana Department of Labor or seek private legal counsel.
A severance or exit package is a bundle of benefits offered to employees who are laid off, terminated, or, under specific circumstances, voluntarily leave their jobs. They most often include financial compensation, continuation of certain benefits, and placement services to find a new job.
If the regular payday for the last pay period an employee worked has passed and the employee has not been paid, contact the Department of Labors Wage and Hour Division or the state labor department. The Department also has mechanisms in place for the recovery of back wages.
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Generally, under Ind. Code 22-2-9-2, an employer must issue a final paycheck to a terminated employee on or before the next regularly scheduled pay date.
Although Indiana follows the at-will employment doctrine, there are some exceptions that protect employees from wrongful termination. They include: Discrimination: Employers cannot terminate employees based on characteristics such as race, religion, sex, gender identity, age, veteran status, or disability.

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