LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6802 NOTE PREPARED: Dec 30, 2021
BILL NUMBER: HB 1229 BILL AMENDED:
SUBJECT: Vaccines and Employment.
FIRST AUTHOR: Rep. Lindauer BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: XGENERAL IMPACT: State & Local
XDEDICATED
XFEDERAL
Summary of Legislation: The bill provides that if an employer requires an employee to receive a COVID-19
vaccine, the employer must waive the COVID-19 vaccine requirement if an employee requests a waiver and
submits certain statements to the employer on the basis of medical reasons, religious reasons, or previous
COVID-19 infection. It provides that an individual is not disqualified from unemployment benefits if the
individual has requested an exemption from an employer's COVID-19 immunization requirement, has
complied with the requirements for seeking an exemption, and was discharged from employment for failing
or refusing to receive an immunization against COVID-19. It also provides that charges based on the wage
credits shall only be charged to the experience or reimbursable account of the employer who discharged the
employee for failing or refusing to receive an immunization against COVID-19.
Effective Date: July 1, 2022.
Explanation of State Expenditures: Summary - The bill could increase expenditures from the
Unemployment Insurance Benefit Fund. The bill allows individuals to receive unemployment benefits if they
are fired for failure to get vaccinated for COVID-19 and their employer did not allow exemptions as required
under the bill.
If a state agency were to fire an individual for failure to receive a COVID-19 vaccine without allowing
exemptions, the agency would have increased costs to pay unemployment benefits for the individual who was
fired. The state is a reimbursable employer for unemployment benefits. This means that rather than paying
State Unemployment Tax (SUTA) into the Unemployment Insurance Benefit Fund, the state pays the actual
cost of unemployment benefits when state employees are laid off.
HB 1229 1 Additional Information - The bill may increase workload at the DOL. The DOL enforces Indiana’s labor
laws. Enforcing labor laws are within the DOL’s routine administrative functions and should be able to be
implemented with no additional appropriations, assuming near customary agency staffing and resource levels.
Unemployment Benefits are administered by the Department of Workforce Development (DWD). DWD
should be able to process any additional claims for unemployment benefits within current resources.
Explanation of State Revenues: The bill could increase SUTA revenues to the Unemployment Insurance
Benefit Fund beginning in FY 2024. An employer that terminates an employee for failure to be vaccinated
against COVID-19 without providing exemptions would be required to pay a higher SUTA tax rate in the
future. An employer’s SUTA tax rate is adjusted annually based on the employer’s experience account status
as of June 30
th
of each year.
Explanation of Local Expenditures: If a local unit were to fire an individual for failure to receive a
COVID-19 vaccine without allowing exemptions, the local unit would have increased costs related to
unemployment insurance. Local units that are reimbursable employers pay the cost of unemployment benefits
when local employees are laid off. Local units with experience accounts pay a higher SUTA tax rate in the
future when they lay off employees.
Explanation of Local Revenues:
State Agencies Affected: Department of Workforce Development, Department of Labor, All.
Local Agencies Affected: All.
Information Sources: Indiana Department of Workforce Development. (2021, December 22).
Unemployment Insurance Employer Handbook. https://www.in.gov/dwd/files/Employer_Handbook.pdf
Fiscal Analyst: Camille Tesch, 317-232-5293.
HB 1229 2