INDIANA – As Hoosiers prepare to welcome the new year, several new laws will be enacted in Indiana starting January 1, 2025. While some changes may be a hassle for a few, others will likely be welcomed. Here’s a breakdown of the key updates you’ll need to know as 2025 begins:
1. Flat Income Tax Rate Reduction
One change that could put a little extra money in your pocket is the reduction of Indiana’s flat income tax rate. Beginning January 1, 2025, the tax rate will drop from 3.05% to 3%. While this doesn’t mean an increase in wages, it will result in a smaller tax burden for Hoosier taxpayers, potentially leading to larger paychecks.
2. Updated Child Labor Laws
Indiana will also ease restrictions on minors working, particularly for 16- and 17-year-olds. Starting January 1, 2025, these teens will be able to work any shift an adult can, with or without adult supervision, as long as the work does not fall under prohibited categories. Federal laws still govern certain limitations on employment for minors, including prohibiting hazardous work for children under 18 and restricting work for children under 14.
For 14- and 15-year-olds, however, some restrictions remain in place. These young workers can still work a maximum of three hours per school day, eight hours on non-school days, and up to 18 hours per week during the school year. In the summer, they can work up to 40 hours per week. Additionally, they cannot begin their workday before 7 a.m. or work past 7 p.m. during the school year, or 9 p.m. in the summer.
Employers will no longer face fines for violations involving time increments of 10 minutes or less, but they may still receive warnings or minor fines for further violations, and federal inspectors can impose stricter penalties if necessary.
3. New Excavation Law
House Bill 1122 introduces a new regulation for excavation projects, requiring workers to wait two full business days after notifying utilities to mark the location of underground lines before starting any digging. One key aspect of this law is the concept of “prevailing time,” which refers to the time observed in Indianapolis, Indiana (Eastern Standard Time). Excavators in counties that observe Central Standard Time must account for the time difference between their local time and the “prevailing time” as defined in the law.
In addition to the new minimum time frame for starting projects, there is a maximum window: excavation work must begin no later than 10 calendar days after the notice is issued, or a new notice must be requested. The law also mandates that excavators maintain at least a two-foot distance from utility lines, as marked.
Utilities must respond to line-marking requests within two business days, and excavators must confirm receipt of these responses before digging. Tickets and reactions for these projects can be accessed through the Indiana 811 website.
These new laws are just the beginning, with additional updates expected to take effect on July 1, 2025, when the state’s fiscal year begins. Hoosiers should stay informed to ensure compliance with these changes.
