Title sums it up.
Thank you to @Drew Wills.
I rewrote it as this:
function inArrayCaseInsensitive(needle, haystackArray){
//Iterates over an array of items to return the index of the first item that matches the provided val ('needle') in a case-insensitive way. Returns -1 if no match found.
var defaultResult = -1;
var result = defaultResult;
$.each(haystackArray, function(index, value) {
if (result == defaultResult && value.toLowerCase() == needle.toLowerCase()) {
result = index;
}
});
return result;
}