The equal pay provisions of the Indiana Minimum Wage Law prohibit an employer from discriminating based on sex, within any establishment in which employees are employed, by paying employees in the establishment less than it pays employees of the opposite sex in the establishment for equal work on jobs requiring equal skill, effort, and responsibility that are performed under similar working conditions (IN Code Ann. Sec. 22-2-2-4). The equal pay provisions of the law apply to employers with two or more employees. The law prohibits employers from:
• Reducing an employee's wages in order to comply with the law's requirements
• Entering into contracts under which an employee agrees to accept a lesser wage based on gender
• Retaliating against an employee who has started or participated in an action to recover wages
The Law does not prohibit wage differentials based on a seniority or merit system, a system that measures earnings by the quantity or quality of production, or a differential based on any factor other than sex. Most violations of the Minimum Wage Law will also constitute sex discrimination within the meaning of the Indiana Civil Rights Law (IN Code Ann. Sec. 22-9-1-2 et seq.).