Introduced Version
HOUSE BILL No. 1647
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 22-2-20.
Synopsis: Paid leave for mental health. Entitles an employee to at least
36 hours of paid mental health leave per calendar year. Provides that
unused paid mental health leave rolls over to the next calendar year and
that an employer is not required to pay out unused paid mental health
leave upon the termination of an employment relationship. Requires an
employee to provide reasonable advance notice when paid mental
health leave will be used. Prohibits an employer from discriminating or
taking adverse action against an employee who uses paid mental health
leave.
Effective: July 1, 2025.
Hatcher
January 21, 2025, read first time and referred to Committee on Employment, Labor and
Pensions.
2025 IN 1647—LS 7366/DI 153 Introduced
First Regular Session of the 124th General Assembly (2025)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2024 Regular Session of the General Assembly.
HOUSE BILL No. 1647
A BILL FOR AN ACT to amend the Indiana Code concerning labor
and safety.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 22-2-20 IS ADDED TO THE INDIANA CODE AS
2 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
3 1, 2025]:
4 Chapter 20. Paid Mental Health Leave
5 Sec. 1. This chapter applies to a written or oral contract or
6 agreement entered into or renewed after June 30, 2025.
7 Sec. 2. (a) As used in this chapter, "employee" means an
8 individual employed or permitted to work or perform services for
9 remuneration under a contract of hire, written or oral, by an
10 employer.
11 (b) The term does not include a seasonal worker.
12 Sec. 3. (a) As used in this chapter, "employer" means:
13 (1) a person or entity that employs at least one (1) employee
14 in Indiana; or
15 (2) an agent of an employer described in subdivision (1).
16 (b) The term includes the state and political subdivisions of the
17 state.
2025 IN 1647—LS 7366/DI 153 2
1 Sec. 4. As used in this chapter, "person" means:
2 (1) an individual;
3 (2) a proprietorship;
4 (3) a partnership;
5 (4) a firm;
6 (5) an association;
7 (6) a corporation; or
8 (7) another legal entity.
9 Sec. 5. As used in this chapter, "seasonal worker" has the
10 meaning set forth in IC 22-4-8-4.
11 Sec. 6. (a) An employee who is absent from work to care for the
12 employee's own mental health is entitled to mental health leave for
13 the absence as provided by this chapter.
14 (b) An employer shall provide each employee at least thirty-six
15 (36) hours of paid mental health leave per calendar year.
16 Sec. 7. (a) The smallest increment in which an employee is
17 entitled to use paid mental health leave is the lesser of:
18 (1) one (1) hour; or
19 (2) the smallest increment the employer's payroll system uses
20 to account for absences or other use of time.
21 (b) Unused paid mental health leave carries over from one (1)
22 calendar year to the next calendar year.
23 (c) An employer is not required to pay out unused paid mental
24 health leave when an employment relationship with an employee
25 terminates.
26 Sec. 8. (a) If an employee is absent from work to care for the
27 employee's own mental health, the employer and the employee may
28 agree by mutual consent that the employee, during the same or the
29 immediately following pay period, may:
30 (1) work a number of hours equivalent to the number of hours
31 that the employee was absent; and
32 (2) by working the equivalent hours described in subdivision
33 (1), not be required to use paid mental health leave for the
34 absence.
35 (b) An employer may not require the employee:
36 (1) to work a number of hours equivalent to the number of
37 hours that the employee was absent; or
38 (2) as a condition for the employee to take paid mental health
39 leave, to search for or find a replacement employee to cover
40 the hours the employee will be absent.
41 Sec. 9. When the need to use paid mental health leave is
42 foreseeable, the employee shall make a good faith effort to provide
2025 IN 1647—LS 7366/DI 153 3
1 the employer advance notice of the employee's intent to use paid
2 mental health leave.
3 Sec. 10. (a) An employer may not interfere with, restrain, or
4 deny the exercise of or the attempt to exercise any right provided
5 under this chapter.
6 (b) An employer may not use an employee's decision to take
7 paid mental health leave as a negative factor in an employment
8 action, including hiring, evaluation, promotion, or termination.
2025 IN 1647—LS 7366/DI 153