Indiana Has Three New Laws Taking Effect January 1, 2025

Source: Photo: Eric Berman/WIBC)

Indiana Has Three New Laws Taking Effect January 1, 2025

With the beginning of a new year, Indiana residents and businesses should prepare for significant changes as three new laws come into effect on January 1, 2025.

These laws, impacting taxes, child labor, and excavation practices, aim to streamline regulations and provide benefits while addressing safety and practicality.

Here’s an overview of what these new laws entail.

1. Reduction of the State Income Tax Rate

The first major change is a welcomed one for taxpayers. Indiana’s flat income tax rate will drop from 3.05% to an even 3%. This slight decrease may result in modest savings for residents, putting more money back into the pockets of Hoosiers. Over time, the reduced financial burden could contribute to increased consumer spending and stimulate local economies. While incremental, this adjustment aligns with Indiana’s ongoing efforts to maintain competitive tax policies.

2. Updates to Child Labor Laws

New regulations on child labor mark a notable shift in Indiana’s employment landscape. Restrictions on working hours for 16- and 17-year-olds are being lifted, allowing them to work any shift that an adult employee can, with or without supervision. However, federal laws regarding hazardous jobs and specific limits for younger teens still apply.

For 14- and 15-year-olds, existing restrictions remain, permitting a maximum of three hours of work per school day and eight hours on non-school days. These younger workers are also limited to 18 hours per week during the school year and 40 hours weekly during the summer. While the changes may grant teens greater flexibility in managing their schedules, employers will need to stay vigilant about ensuring federal and state compliance.

Notably, employers now face reduced penalties for minor infractions involving shifts, with warnings or small fines replacing harsher measures for issues like time overages of 10 minutes or less. The changes aim to balance fostering work opportunities for teens with ensuring their protection.

3. New Excavation Law

The “Call Before You Dig” law introduces important safety measures for excavation and digging projects. Starting January 1, workers must wait at least two full business days before beginning any project after notifying utilities to mark underground lines. This waiting period ensures that utilities have adequate time to respond and map out markings on-site to prevent accidents.

Additionally, projects must start no later than 10 calendar days after the initial notice; otherwise, a new request must be submitted. Excavators are required to maintain a two-foot buffer zone around utility lines to avoid damage and enhance overall safety. Any excavation-related coordination can be tracked through Indiana811.org, where tickets and responses are available for review.

The law prioritizes safety and accountability, aiming to reduce risks related to infrastructure damage, accidents, and service interruptions, ultimately benefiting both contractors and the public.

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