However, the employer must notify you in advance and may only deduct up to 25 percent of your disposable income each pay period. No, Indiana law does not require employers to give time off for lunch or breaks. Indiana law only requires that employers must pay employees for actual time worked. As a result, employers are not required to pay for sick days, personal days, or holidays unless the employees have been promised payment through the company's personnel policy or employment contract. The Indiana Court of Appeals has found that an agreement to give vacation pay to employees is considered a form of compensation for services just like hourly wages.
Vacation pay is additional wages, earned weekly, where only the time of payment is deferred.
However, if there is a company personnel policy or employment contract which states certain conditions under which accrued vacation pay will be given upon termination, the employee must meet those conditions in order to receive their accrued vacation pay. You are an employee if your employer supervises your work, sets your hours and provides you with the necessary equipment to do your work. In addition, an independent contractor files a federal 1099 Tax Form and a worker's compensation affidavit claiming personal responsibility for any injuries that may occur on the job. Indiana law requires three conditions to be met in order for a wage deduction to be valid. First, the agreement for the deduction must be in writing, signed by the employee, by its terms revocable at any time by the employee upon written notice, and agreed to in writing by the employer.