Indiana 2025 Regular Session

Indiana Senate Bill SB0115 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	SENATE BILL No. 115
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 22-4.1-29.
7	7	Synopsis: Paid family and medical leave program. Requires the
8	8	department of workforce development (department) to establish a paid
9	9	family and medical leave program (program) to provide payments for
10	10	employees who take family and medical leave. Establishes the family
11	11	and medical leave fund to be funded with appropriations from the
12	12	general assembly and payroll contributions. Specifies requirements for
13	13	the administration of the program. Provides for the department to
14	14	approve an employer's use of a private plan to meet the program
15	15	obligations.
16	16	Effective: July 1, 2025.
17	17	Pol Jr.
18	18	January 8, 2025, read first time and referred to Committee on Pensions and Labor.
19	19	2025 IN 115—LS 6202/DI 141 Introduced
20	20	First Regular Session of the 124th General Assembly (2025)
21	21	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
22	22	Constitution) is being amended, the text of the existing provision will appear in this style type,
23	23	additions will appear in this style type, and deletions will appear in this style type.
24	24	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
25	25	provision adopted), the text of the new provision will appear in this style type. Also, the
26	26	word NEW will appear in that style type in the introductory clause of each SECTION that adds
27	27	a new provision to the Indiana Code or the Indiana Constitution.
28	28	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
29	29	between statutes enacted by the 2024 Regular Session of the General Assembly.
30	30	SENATE BILL No. 115
31	31	A BILL FOR AN ACT to amend the Indiana Code concerning labor
32	32	and safety and to make an appropriation.
33	33	Be it enacted by the General Assembly of the State of Indiana:
34	34	1 SECTION 1. IC 22-4.1-29 IS ADDED TO THE INDIANA CODE
35	35	2 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
36	36	3 JULY 1, 2025]:
37	37	4 Chapter 29. Paid Family and Medical Leave Program
38	38	5 Sec. 1. As used in this chapter, "act" refers to the federal Family
39	39	6 and Medical Leave Act of 1993 (29 U.S.C. 2601 et seq.) as in effect
40	40	7 on July 1, 2025.
41	41	8 Sec. 2. As used in this chapter, "application year" is the twelve
42	42	9 (12) month period beginning on the first day of the calendar week
43	43	10 during which an individual files an application for program
44	44	11 benefits.
45	45	12 Sec. 3. As used in this chapter, "benefit payments" means
46	46	13 payments to a covered individual under the program.
47	47	14 Sec. 4. As used in this chapter, "commissioner" refers to the
48	48	15 commissioner of the department appointed under IC 22-4.1-3-1.
49	49	16 Sec. 5. As used in this chapter, "covered individual" means an
50	50	17 individual who:
51	51	2025 IN 115—LS 6202/DI 141 2
52	52	1 (1) is eligible for program benefit payments under section 21
53	53	2 of this chapter; and
54	54	3 (2) meets the application and other administrative
55	55	4 requirements of this chapter.
56	56	5 Sec. 6. As used in this chapter, "covered service member"
57	57	6 means one (1) of the following:
58	58	7 (1) A member of the armed forces of the United States or their
59	59	8 reserves, including a member of the Indiana National Guard
60	60	9 or reserves, who is:
61	61	10 (A) undergoing medical treatment, recuperation, or
62	62	11 therapy;
63	63	12 (B) otherwise in outpatient status; or
64	64	13 (C) otherwise on the temporary disability retired list;
65	65	14 for a serious injury or illness that was incurred by the
66	66	15 member in the line of duty on active duty in the armed forces,
67	67	16 or a serious injury or illness that existed before the beginning
68	68	17 of the member's active duty and was aggravated by service in
69	69	18 the line of duty on active duty in the armed forces.
70	70	19 (2) A former member of the armed forces of the United States
71	71	20 or their reserves, including a former member of the Indiana
72	72	21 National Guard or reserves, who is undergoing medical
73	73	22 treatment, recuperation, or therapy for a serious injury or
74	74	23 illness that was incurred by the member in the line of duty on
75	75	24 active duty in the armed forces, or a serious injury or illness
76	76	25 that existed before the beginning of the member's active duty
77	77	26 and was aggravated by service in the line of duty on active
78	78	27 duty in the armed forces and manifested before or after the
79	79	28 member was discharged or released from service.
80	80	29 Sec. 7. As used in this chapter, "department" refers to the
81	81	30 department of workforce development established by
82	82	31 IC 22-4.1-2-1.
83	83	32 Sec. 8. As used in this chapter, "employee" means an individual
84	84	33 who works directly for an employer under an express or implied
85	85	34 contract of hire.
86	86	35 Sec. 9. As used in this chapter, "employer" has the meaning set
87	87	36 forth in IC 6-3-1-5. The term includes the following:
88	88	37 (1) The state (as defined in IC 5-23-2-16).
89	89	38 (2) A political subdivision (as defined in IC 4-2-6-1).
90	90	39 Sec. 10. As used in this chapter, "family member", with respect
91	91	40 to a covered individual, means the following:
92	92	41 (1) A:
93	93	42 (A) biological, adopted, or foster child;
94	94	2025 IN 115—LS 6202/DI 141 3
95	95	1 (B) stepchild; or
96	96	2 (C) legal ward;
97	97	3 of the covered individual, regardless of age.
98	98	4 (2) A:
99	99	5 (A) biological, adoptive, or foster parent;
100	100	6 (B) stepparent; or
101	101	7 (C) legal guardian;
102	102	8 of the covered individual or the covered individual's spouse.
103	103	9 (3) An individual to whom the covered individual is legally
104	104	10 married under the laws of any state.
105	105	11 (4) A:
106	106	12 (A) grandparent;
107	107	13 (B) stepgrandparent;
108	108	14 (C) biological, adoptive, or foster grandchild;
109	109	15 (D) stepgrandchild;
110	110	16 (E) biological, adoptive, or foster sibling; or
111	111	17 (F) stepsibling;
112	112	18 of the covered individual or the covered individual's spouse.
113	113	19 Sec. 11. As used in this chapter, "fund" refers to the family and
114	114	20 medical leave fund established by section 19 of this chapter.
115	115	21 Sec. 12. As used in this chapter, "health care provider" means
116	116	22 a person licensed under federal or state law to provide medical or
117	117	23 emergency services, including a doctor, nurse, emergency room
118	118	24 personnel, or certified midwife.
119	119	25 Sec. 13. As used in this chapter, "next of kin" has the meaning
120	120	26 set forth in 29 U.S.C. 2611(17).
121	121	27 Sec. 14. As used in this chapter, "program" refers to the paid
122	122	28 family and medical leave program established under section 17 of
123	123	29 this chapter.
124	124	30 Sec. 15. As used in this chapter, "qualifying exigency leave"
125	125	31 means leave for a need arising from a covered individual's family
126	126	32 member's active duty service or notice of an impending call or
127	127	33 order to active duty in the armed forces of the United States,
128	128	34 including:
129	129	35 (1) providing for the care or other needs of the military
130	130	36 member's child or other family member;
131	131	37 (2) making financial or legal arrangements for the military
132	132	38 member;
133	133	39 (3) attending counseling;
134	134	40 (4) attending military events or ceremonies;
135	135	41 (5) spending time with the military member during a rest and
136	136	42 recuperation leave or following return from deployment; or
137	137	2025 IN 115—LS 6202/DI 141 4
138	138	1 (6) making arrangements following the death of the military
139	139	2 member.
140	140	3 Sec. 16. As used in this chapter, "serious health condition" has
141	141	4 the meaning set forth in 29 U.S.C. 2611(11).
142	142	5 Sec. 17. (a) Not later than January 1, 2027, the department shall
143	143	6 establish and administer a paid family and medical leave program
144	144	7 through which a covered individual may receive benefit payments
145	145	8 under this chapter.
146	146	9 (b) The department shall do the following:
147	147	10 (1) Establish reasonable procedures and forms for filing:
148	148	11 (A) employer and employee payroll contributions to the
149	149	12 fund under section 20 of this chapter; and
150	150	13 (B) claims for program benefits.
151	151	14 (2) Specify necessary documentation to support a claim for
152	152	15 program benefits, including any documentation required
153	153	16 from a health care provider for proof of a serious health
154	154	17 condition.
155	155	18 (3) Notify the employer of an individual who applies for
156	156	19 program benefits not more than five (5) business days after a
157	157	20 claim for program benefits is filed.
158	158	21 (4) Use information sharing and integration technology to
159	159	22 facilitate the disclosure of relevant information or records, as
160	160	23 consented to by the individual under state law.
161	161	24 (5) Adopt rules under IC 4-22-2 to implement this chapter.
162	162	25 Sec. 18. (a) Information concerning an individual described in
163	163	26 this chapter is confidential and may be used only for the purposes
164	164	27 of this chapter.
165	165	28 (b) An individual described in subsection (a) or an authorized
166	166	29 representative of the individual may review and receive
167	167	30 information described in subsection (a) upon the presentation of
168	168	31 the individual's signed authorization.
169	169	32 Sec. 19. (a) The family and medical leave fund is established for
170	170	33 the purpose of providing family and medical leave program benefit
171	171	34 payments to covered individuals. The fund shall be administered
172	172	35 by the department.
173	173	36 (b) The fund consists of appropriations from the general
174	174	37 assembly and payroll contributions under section 20 of this
175	175	38 chapter.
176	176	39 (c) The expenses of administering the fund shall be paid from
177	177	40 money in the fund.
178	178	41 (d) The treasurer of state shall invest the money in the fund not
179	179	42 currently needed to meet the obligations of the fund in the same
180	180	2025 IN 115—LS 6202/DI 141 5
181	181	1 manner as other public money may be invested. Interest that
182	182	2 accrues from these investments shall be deposited in the fund.
183	183	3 (e) Money in the fund at the end of a state fiscal year does not
184	184	4 revert to the state general fund.
185	185	5 (f) Money in the fund is continually appropriated for the
186	186	6 purpose of funding the program.
187	187	7 Sec. 20. (a) The department shall annually determine the
188	188	8 amount of payroll contributions necessary to finance program
189	189	9 benefits.
190	190	10 (b) Employers shall make contributions to the fund in an
191	191	11 amount determined under subsection (a), not to exceed
192	192	12 seven-tenths of one percent (0.7%) of an employee's wage in a
193	193	13 twelve (12) month period. Employers may deduct up to fifty
194	194	14 percent (50%) of the contributions determined under subsection
195	195	15 (a) from the employee's wages.
196	196	16 Sec. 21. An individual is eligible for program benefit payments
197	197	17 if the individual:
198	198	18 (1) either:
199	199	19 (A) earned at least six thousand three hundred dollars
200	200	20 ($6,300) from at least one (1) employer during the twelve
201	201	21 (12) month period immediately preceding the date on
202	202	22 which the individual submits an application for program
203	203	23 benefits; or
204	204	24 (B) is self-employed and elected to participate in the
205	205	25 program under section 27 of this chapter; and
206	206	26 (2) is described in at least one (1) of the following:
207	207	27 (A) Is caring for a child during the first year after the
208	208	28 birth, adoption, or foster care placement of the child.
209	209	29 (B) Is caring for a family member with a serious health
210	210	30 condition.
211	211	31 (C) Has a serious health condition or pregnancy that
212	212	32 makes the individual unable to perform the functions of
213	213	33 the employment position described in subdivision (1).
214	214	34 (D) Is caring for a covered service member who is the
215	215	35 individual's next of kin.
216	216	36 (E) Is eligible for qualifying exigency leave.
217	217	37 (F) Is subject to a state of emergency that affects the
218	218	38 individual's ability to perform the functions of the
219	219	39 employment position described in subdivision (1).
220	220	40 Sec. 22. Beginning July 1, 2027, the department shall make
221	221	41 program benefit payments available to an individual who:
222	222	42 (1) is eligible under section 21 of this chapter; and
223	223	2025 IN 115—LS 6202/DI 141 6
224	224	1 (2) applies for program benefits under this chapter.
225	225	2 Sec. 23. (a) A covered individual may receive program benefit
226	226	3 payments for not more than twelve (12) weeks during an
227	227	4 application year.
228	228	5 (b) A covered individual may not receive program benefit
229	229	6 payments for less than eight (8) hours of family and medical leave
230	230	7 taken in one (1) work week.
231	231	8 Sec. 24. (a) Subject to subsection (b), the weekly program
232	232	9 benefit for family and medical leave is determined as follows:
233	233	10 (1) If the covered individual's average weekly wage is not
234	234	11 more than fifty percent (50%) of the state average weekly
235	235	12 wage, the employee's weekly benefit is ninety percent (90%)
236	236	13 of the covered individual's average weekly wage.
237	237	14 (2) If the covered individual's average weekly wage is greater
238	238	15 than fifty percent (50%) of the state average weekly wage, the
239	239	16 covered individual's weekly benefit is the sum of:
240	240	17 (A) ninety percent (90%) of the covered individual's
241	241	18 average weekly wage up to fifty percent (50%) of the state
242	242	19 average weekly wage; plus
243	243	20 (B) fifty percent (50%) of the covered individual's average
244	244	21 weekly wage that is greater than fifty percent (50%) of the
245	245	22 state average weekly wage.
246	246	23 (b) The maximum weekly program benefit payment is an
247	247	24 amount equal to the state average weekly wage.
248	248	25 Sec. 25. (a) A covered individual may take paid family and
249	249	26 medical leave on an intermittent or reduced leave schedule under
250	250	27 which all of the leave is not taken sequentially.
251	251	28 (b) Program benefit payments for an intermittent or reduced
252	252	29 leave schedule must be prorated accordingly.
253	253	30 (c) A covered individual shall do the following:
254	254	31 (1) Make a reasonable effort to schedule paid family and
255	255	32 medical leave so as not to unduly disrupt the operations of the
256	256	33 employer.
257	257	34 (2) To the extent practicable, provide to the employer prior
258	258	35 notice of the schedule on which the covered individual will
259	259	36 take the family and medical leave.
260	260	37 (d) The total amount of paid family and medical leave available
261	261	38 to a covered individual under this chapter is not reduced beyond
262	262	39 the actual amount of paid family and medical leave taken under
263	263	40 this section.
264	264	41 (e) This section does not entitle a covered individual to receive
265	265	42 more paid family and medical leave than the amount of family and
266	266	2025 IN 115—LS 6202/DI 141 7
267	267	1 medical leave specified in section 23(a) of this chapter.
268	268	2 Sec. 26. (a) An employer shall:
269	269	3 (1) upon hiring;
270	270	4 (2) upon an employee's leave request;
271	271	5 (3) when the employer acquires knowledge that an employee's
272	272	6 leave may be qualifying exigency leave; and
273	273	7 (4) annually;
274	274	8 provide to the employee written notice as described in subsection
275	275	9 (b).
276	276	10 (b) Notice required by subsection (a) must include the following:
277	277	11 (1) Notice of the employee's right to program benefits and the
278	278	12 terms under which family and medical leave may be used.
279	279	13 (2) The amount of program benefit payments to which the
280	280	14 employee would be entitled.
281	281	15 (3) The procedure for filing a claim for program benefits.
282	282	16 (4) That discrimination and retaliatory personnel actions
283	283	17 against an employee for requesting, applying for, or using
284	284	18 program benefits are prohibited.
285	285	19 (5) That the employee has a right to file a complaint for
286	286	20 violations of this chapter.
287	287	21 (c) An employer shall display and maintain a poster in a
288	288	22 conspicuous place accessible to employees at the employer's place
289	289	23 of business that contains the information required by this section.
290	290	24 (d) The commissioner may adopt rules under IC 4-22-2 to
291	291	25 establish additional requirements concerning the means by which
292	292	26 employers distribute the notice required by this section.
293	293	27 Sec. 27. (a) An individual who is self-employed, including a sole
294	294	28 proprietor, partner, or joint venturer, may elect to participate in
295	295	29 the program for an initial period of not less than three (3) years.
296	296	30 (b) An individual who is self-employed as described in
297	297	31 subsection (a) shall file a notice of election in writing with the
298	298	32 commissioner, including all information required by the
299	299	33 department.
300	300	34 (c) A notice of election filed under subsection (b) is effective on
301	301	35 the date on which the notice is filed.
302	302	36 (d) An individual who is self-employed and who has elected to
303	303	37 participate in the program under this chapter may withdraw from
304	304	38 participation by filing a notice of withdrawal:
305	305	39 (1) not later than thirty (30) days after the end of the three (3)
306	306	40 year period described in subsection (a); or
307	307	41 (2) at other times provided by the commissioner.
308	308	42 A withdrawal under this subsection takes effect not earlier than
309	309	2025 IN 115—LS 6202/DI 141 8
310	310	1 thirty (30) days after the notice of withdrawal is filed.
311	311	2 Sec. 28. (a) A person that:
312	312	3 (1) interferes with;
313	313	4 (2) restrains;
314	314	5 (3) denies; or
315	315	6 (4) attempts to deny;
316	316	7 the exercise of a provision of this chapter violates this chapter.
317	317	8 (b) An employer, temporary help company, employment agency,
318	318	9 employee organization, or other person shall not take retaliatory
319	319	10 personnel action or otherwise discriminate against an individual
320	320	11 because the individual does any of the following:
321	321	12 (1) Requests, files for, applies for, or uses program benefits.
322	322	13 (2) Communicates to the person or another person an intent
323	323	14 to file a claim, a complaint with the department, a court
324	324	15 action, or an appeal concerning program benefits.
325	325	16 (3) Testifies, intends to testify, or assists in an investigation,
326	326	17 hearing, or proceeding concerning program benefits.
327	327	18 (4) Informs a person concerning an employer's alleged
328	328	19 violation of this chapter.
329	329	20 (5) Informs a person of the person's rights under this chapter.
330	330	21 (c) An employer's absence policy may not count paid family and
331	331	22 medical leave taken under this chapter as an absence that may lead
332	332	23 to or result in discipline, discharge, demotion, suspension, or
333	333	24 another adverse employment action.
334	334	25 (d) The protections of this section apply to an individual who in
335	335	26 good faith alleges a violation of this chapter, regardless of whether
336	336	27 the allegation is mistaken.
337	337	28 (e) The civil rights commission created by IC 22-9-1-4 shall
338	338	29 enforce this section.
339	339	30 Sec. 29. Paid family and medical leave taken under this chapter
340	340	31 that also qualifies as leave under the act runs concurrently with
341	341	32 leave taken under the act.
342	342	33 Sec. 30. (a) An individual's right to program benefit payments
343	343	34 under this chapter may not be diminished by:
344	344	35 (1) a collective bargaining agreement that is entered into or
345	345	36 renewed; or
346	346	37 (2) an employer policy adopted or retained;
347	347	38 after June 30, 2025.
348	348	39 (b) An agreement by an individual to waive the individual's
349	349	40 rights under this chapter is void as against public policy.
350	350	41 Sec. 31. An individual's eligibility for program benefits under
351	351	42 this chapter does not entitle the individual to job protection beyond
352	352	2025 IN 115—LS 6202/DI 141 9
353	353	1 the job protection required by the act.
354	354	2 Sec. 32. (a) This chapter does not do the following:
355	355	3 (1) Supersede or diminish an employer's obligation to comply
356	356	4 with an employer policy, law, or collective bargaining
357	357	5 agreement that provides greater or additional rights to leave
358	358	6 than provided in this chapter.
359	359	7 (2) Curtail the rights, privileges, or remedies of an employee
360	360	8 under a collective bargaining agreement or employment
361	361	9 contract.
362	362	10 (3) Allow an employer to compel an employee to exhaust
363	363	11 rights to sick, vacation, or personal time before or while
364	364	12 taking leave under this chapter.
365	365	13 (b) An employer may require that benefit payments under this
366	366	14 chapter be made concurrently or otherwise coordinated with
367	367	15 payment made or leave allowed under the terms of disability or
368	368	16 family care leave under a collective bargaining agreement or
369	369	17 employer policy such that the employee will receive the greater of
370	370	18 the various benefits that are available for the covered reason.
371	371	19 (c) Leave provided under a collective bargaining agreement or
372	372	20 employer policy that is used by the employee for a covered reason
373	373	21 and paid at the same or higher rate than leave available under this
374	374	22 chapter counts against the allotment of leave available under this
375	375	23 chapter.
376	376	24 (d) An employer shall give each employee written notice of the
377	377	25 requirements of this section.
378	378	26 Sec. 33. (a) The department shall establish a process for
379	379	27 approving a private plan to be used by the employer to meet the
380	380	28 employer's obligations under this chapter.
381	381	29 (b) An employer may apply to the department for approval of
382	382	30 a private plan described in subsection (a).
383	383	31 (c) The department may approve an employer's private plan
384	384	32 described in subsection (a) if the department determines that the
385	385	33 private plan confers all of the same rights, protections, and benefits
386	386	34 provided to employees under this chapter, including the following:
387	387	35 (1) Providing paid family and medical leave to a covered
388	388	36 individual for the reasons set forth in section 21 of this
389	389	37 chapter, for the maximum number of weeks specified in
390	390	38 section 23 of this chapter, in a benefit year.
391	391	39 (2) Providing a wage replacement rate during all family and
392	392	40 medical leave at least equal to the amount required by section
393	393	41 24 of this chapter.
394	394	42 (3) Imposing no additional conditions or restrictions on the
395	395	2025 IN 115—LS 6202/DI 141 10
396	396	1 use of paid family and medical leave beyond the conditions or
397	397	2 restrictions explicitly authorized by this chapter or rules
398	398	3 adopted under this chapter.
399	399	4 (4) Allowing an employee covered under the private plan who
400	400	5 is eligible to take paid family and medical leave under this
401	401	6 chapter to take paid family and medical leave under the
402	402	7 private plan.
403	403	8 Sec. 34. The department shall conduct a public education
404	404	9 campaign to inform employees and employers regarding the
405	405	10 availability of paid family and medical leave program benefits.
406	406	11 Sec. 35. The department may use state data collection and
407	407	12 technology to the extent possible and integrate the program with
408	408	13 existing state policies.
409	409	14 Sec. 36. The department shall annually report to the:
410	410	15 (1) legislative council in an electronic format under IC 5-14-6;
411	411	16 and
412	412	17 (2) budget committee;
413	413	18 concerning projected and actual program participation,
414	414	19 categorized by purpose of the leave, gender of employees taking
415	415	20 leave, employer and employee contributions, fund balances,
416	416	21 outreach efforts, and family members for whom leave was taken to
417	417	22 provide care.
418	418	2025 IN 115—LS 6202/DI 141