LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7394 NOTE PREPARED: Jan 8, 2025
BILL NUMBER: HB 1338 BILL AMENDED:
SUBJECT: Employment and Vaccinations.
FIRST AUTHOR: Rep. Borders BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
XFEDERAL
Summary of Legislation: The bill provides that an employer may require an immunization only if the
employer respects the employee's right to refuse an immunization. It provides that an employee shall be free
from coercion or an adverse action based on the employee's refusal of an immunization. The bill requires an
employer that offers an immunization at no cost to an employee to provide certain notice to the employee.
The bill provides that a violation may be reported to the Department of Labor (DOL). The bill requires the
department to impose a civil penalty of $5,000 per incident. It allows an employee to bring a civil action
against an employer to enforce the provisions. The bill repeals provisions concerning exemptions from
COVID-19 immunization requirements. It also makes a corresponding change.
Effective Date: Upon passage.
Explanation of State Expenditures: Department of Labor (DOL): The DOL will have increased workload
and/or expenditures to enforce provisions of the bill. The bill requires the DOL to take reports of violations
from employees, independent contractors, subcontractors, and students working as trainees or interns and
impose civil penalties for violations. If employers are largely compliant, the agency could likely provide
enforcement within current resources. Additional staff and resources may be required if there are large
numbers of violations. The additional funds and resources required could be supplied through existing staff
and resources currently being used in another program or with new appropriations. Ultimately, the source
of funds and resources required to satisfy the requirements of this bill will depend on legislative and
administrative actions.
All Agencies as Employers: The bill could increase expenditures for state agencies. Governmental entities,
including state educational institutions, violating provisions of the bill would be subject to civil penalties of
$5,000 per violation. If the state as an employer requires vaccinations in violation of this bill, coerces an
employee to get vaccinated, or takes an adverse employment action against an employee due to refusal to get
vaccinated, the state may be required to pay actual damages, and court costs and reasonable attorney’s fees
to an individual who prevails in a civil action.
[This bill has the potential to impact all agencies as employers,]
HB 1338 1 Unemployment Insurance: The bill could increase expenditures from the Unemployment Insurance Benefit
Fund. The bill allows individuals to receive unemployment benefits if they are fired for refusing to get
vaccinated. Under current law, people who fail to receive a COVID-19 vaccine who requested an exemption
and are fired because of it are eligible for unemployment benefits.
If a state agency were to fire an employee for refusing a vaccine, the agency would have increased costs to
pay unemployment benefits for the individual who was fired. The impact is expected to be minor. 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. [This bill has the potential to impact all
agencies as employers, thus impacting all funds that provide operating funds to agency staff.]
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: There may be an increase in General Fund revenue from the bill due to
collections of $5,000 civil penalties from employers who violate provisions of the bill.
If additional civil cases occur and court fees are collected, revenue to the state General Fund will increase.
The total revenue per case would range between $100 and $122. The amount deposited will vary depending
on whether the case is filed in a court of record or a municipal court. The following linked document
describes the fees and distribution of the revenue: Court fees imposed in civil, probate, and small claims
cases.
Explanation of Local Expenditures: Local Units as Employers: The bill could increase expenditures for
local units. Political subdivisions may be subject to civil penalties of up to $5,000 per violation. If the unit
as an employer requires vaccinations in violation of this bill or takes an adverse employment action against
an employee due to vaccination status, the state may be required to pay actual damages, court costs, and
reasonable attorney’s fees to an individual who prevails in a civil action.
Local units who are reimbursable employers for unemployment benefits would have increased costs if they
were to fire employees for refusing a vaccine. The impact is expected to be minor.
Explanation of Local Revenues: If additional cases occur, revenue will be collected by certain local units.
If the case is filed in a court of record, the county will receive $32 and qualifying municipalities will receive
a share of $3. If the case is filed in a municipal court, the county receives $20, and the municipality will
receive $37. The following linked document describes the fees and distribution of the revenue: Court fees
imposed in civil, probate, and small claims cases.
State Agencies Affected: Department of Labor, Department of Workforce Development, all agencies as
employers.
Local Agencies Affected: All units as employers, trial courts, city and town courts.
Information Sources: Indiana Supreme Court, Indiana Trial Court Fee Manual.
Fiscal Analyst: Camille Tesch, 317-232-5293.
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