Indiana has no workers' comp employee minimum, and IOSHA only reaches your public-sector accounts

Indiana presents commercial cleaning contractors with a pragmatic, employer-friendly regulatory environment: right-to-work status since 2012, no sales tax on janitorial services, a state OSHA plan (IOSHA) that covers only public-sector workplaces, and straightforward unemployment insurance through the Indiana Department of Workforce Development. The interplay between IOSHA and federal OSHA is especially important for BSCs that service both government facilities and private commercial buildings in the same state.

Indiana Right-to-Work Law

Indiana enacted right-to-work protection under Indiana Code § 22-6-6 in 2012, making it the first Rust Belt state to adopt such a law in more than 50 years. No employee in Indiana may be required to join or financially support a labor union as a condition of employment. For cleaning contractors hiring in Indianapolis, Fort Wayne, South Bend, and Evansville — cities with union density in adjacent building trades — this means cleaning company employees cannot be compelled to join service workers' unions even when working inside fully unionized facilities. Indiana's minimum wage follows the federal floor of $7.25/hour.

Indiana IOSHA — State Plan Covers Public Sector Only

Indiana operates a state OSHA plan — IOSHA, within the Indiana Department of Labor, 402 W. Washington Street, Room W195, Indianapolis, IN 46204, (317) 232-2693 — that covers only public-sector employers (state agencies, local governments, school districts). Private-sector cleaning companies in Indiana are regulated directly by federal OSHA (Region V, Chicago). This differs from full-state-plan states like Virginia or California. BSCs servicing government buildings will encounter IOSHA inspectors; BSCs in private commercial offices and hospitals face federal OSHA. Core requirements — HazCom, respiratory protection, slip-and-fall prevention, bloodborne pathogens for medical-setting crews — apply equally regardless of which agency enforces them.

Sales Tax — Janitorial Services Exempt in Indiana

Indiana imposes a 7% statewide sales and use tax on tangible personal property, but cleaning services are not taxable — Indiana Code § 6-2.5 limits the taxable base to tangible personal property and certain digital goods. The Indiana DOR Sales Tax Information Bulletin #26 confirms that labor charges for cleaning are not taxable. However, cleaning companies pay Indiana sales or use tax on the cleaning supplies, chemicals, and equipment they purchase, because they are the end-users of those tangible goods — no resale exemption applies to supplies consumed in performing exempt services. Indiana has no local add-on sales taxes; the 7% rate is uniform statewide.

Workers' Compensation — Indiana Workers' Compensation Board

The Indiana Workers' Compensation Act, I.C. § 22-3-2-1 et seq., requires coverage for virtually all Indiana employers; there is no minimum employee threshold for private-sector cleaning companies. Coverage is placed with a private carrier or through the Indiana Assigned Risk Plan. Janitorial workers use NCCI code 9014. The Indiana Workers' Compensation Board, 402 W. Washington Street, Room W196, Indianapolis, IN 46204, (317) 232-3808, oversees disputes and enforcement. Sole proprietors, partners, and LLC members are automatically excluded but may elect coverage. Penalties for failure to insure include civil fines and personal liability for all injury costs.

Indiana DWD — Unemployment Insurance

Indiana UI is administered by the Indiana Department of Workforce Development (DWD), 10 N. Senate Avenue, Indianapolis, IN 46204, (800) 891-6499. Indiana effectively requires registration once any wages are paid to a worker in covered services. The taxable wage base is $9,500 per employee (stable since 2011). New employer UI rates are 2.5% for the first three years. Register through Uplink ESS. Quarterly reports and payments are due April 30, July 31, October 31, and January 31.

Business Registration in Indiana

Indiana businesses file with the Indiana Secretary of State's INBiz portal. LLC Articles of Organization cost $95; corporations pay $90. Expedited same-day processing costs an additional $100. Sole proprietors using a trade name file with the county recorder. Indiana has no statewide janitorial license; state-level registration for sales tax and withholding is through the Indiana Department of Revenue, 100 N. Senate Avenue, Indianapolis, IN 46204, (317) 232-2240. Fort Wayne requires a City of Fort Wayne Business License ($35 annually); Evansville and South Bend have their own local registration processes.

Independent Contractor Classification

Indiana applies the common-law "right-to-control" test for worker classification across UI, WC, and income tax withholding — the state does not use an ABC test. The three categories examined are behavioral control (how the work is done), financial control (investment in tools, financial risk), and type of relationship (written contract, benefits, permanency). The Indiana DWD has been increasingly active in auditing cleaning companies using 1099 crews, and reclassification findings produce multi-year back-tax assessments plus penalties. A cleaning company owner who directs crew timing, provides all equipment, and sets rates for workers serving company-designated accounts should treat those workers as employees.

Local Licensing, Bonding, and Chemical Notes

Indianapolis does not currently require a cleaning-company-specific license beyond standard city business registration. Government janitorial contracts through Indiana's Department of Administration (IDOA) typically require commercial general liability of $1 million per occurrence and a performance bond of 5%–10% of contract value. Indiana has not enacted PFAS-specific restrictions on commercial cleaning products, but BSCs should monitor Indiana DEM as federal EPA PFAS enforcement affecting product formulations advances. Annual OSHA HazCom training and accessible SDS binders are required under federal OSHA's direct jurisdiction over Indiana private workplaces.

Local / metro cleaning business licenses

City and metro rules sit on top of Indiana statewide requirements. Use the state sections above for entity, workers’ compensation, and tax — then open the metro page for municipal fees and agencies.

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