Introduced Version SENATE BILL No. 116 _____ DIGEST OF INTRODUCED BILL Citations Affected: IC 22-4. Synopsis: Unemployment benefits. Amends the definition of "wage credits". Specifies the rate for unemployment insurance benefits for initial claims filed by an individual who is totally unemployed for any week beginning after June 30, 2025. Specifies, for initial claims filed for any week beginning after June 30, 2025: (1) the maximum weekly benefit amount; and (2) an additional weekly benefit for eligible and qualified individuals with dependents. Effective: July 1, 2025. Pol Jr. January 8, 2025, read first time and referred to Committee on Pensions and Labor. 2025 IN 116—LS 6062/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. SENATE BILL No. 116 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 22-4-4-3, AS AMENDED BY P.L.122-2019, 2 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 3 JULY 1, 2025]: Sec. 3. (a) For calendar quarters beginning on and after 4 July 1, 1997, and before July 1, 1998, "wage credits" means 5 remuneration paid for employment by an employer to an individual and 6 remuneration received as tips or gratuities in accordance with Sections 7 3102 and 3301 et seq. of the Internal Revenue Code. Wage credits may 8 not exceed five thousand four hundred dollars ($5,400) and may not 9 include payments specified in section 2 of this chapter. 10 (b) For calendar quarters beginning on and after July 1, 1998, and 11 before July 1, 1999, "wage credits" means remuneration paid for 12 employment by an employer to an individual and remuneration 13 received as tips or gratuities in accordance with Sections 3102 and 14 3301 et seq. of the Internal Revenue Code. Wage credits may not 15 exceed five thousand six hundred dollars ($5,600) and may not include 16 payments that are excluded from the definition of wages under section 17 2 of this chapter. 2025 IN 116—LS 6062/DI 153 2 1 (c) For calendar quarters beginning on and after July 1, 1999, and 2 before July 1, 2000, "wage credits" means remuneration paid for 3 employment by an employer to an individual and remuneration 4 received as tips or gratuities in accordance with Sections 3102 and 5 3301 et seq. of the Internal Revenue Code. Wage credits may not 6 exceed five thousand eight hundred dollars ($5,800) and may not 7 include payments that are excluded from the definition of wages under 8 section 2 of this chapter. 9 (d) For calendar quarters beginning on and after July 1, 2000, and 10 before July 1, 2001, "wage credits" means remuneration paid for 11 employment by an employer to an individual and remuneration 12 received as tips or gratuities in accordance with Sections 3102 and 13 3301 et seq. of the Internal Revenue Code. Wage credits may not 14 exceed six thousand seven hundred dollars ($6,700) and may not 15 include payments that are excluded from the definition of wages under 16 section 2 of this chapter. 17 (e) For calendar quarters beginning on and after July 1, 2001, and 18 before July 1, 2002, "wage credits" means remuneration paid for 19 employment by an employer to an individual and remuneration 20 received as tips or gratuities in accordance with Sections 3102 and 21 3301 et seq. of the Internal Revenue Code. Wage credits may not 22 exceed seven thousand three hundred dollars ($7,300) and may not 23 include payments that are excluded from the definition of wages under 24 section 2 of this chapter. 25 (f) For calendar quarters beginning on and after July 1, 2002, and 26 before July 1, 2003, "wage credits" means remuneration paid for 27 employment by an employer to an individual and remuneration 28 received as tips or gratuities in accordance with Sections 3102 and 29 3301 et seq. of the Internal Revenue Code. Wage credits may not 30 exceed seven thousand nine hundred dollars ($7,900) and may not 31 include payments that are excluded from the definition of wages under 32 section 2 of this chapter. 33 (g) For calendar quarters beginning on and after July 1, 2003, and 34 before July 1, 2004, "wage credits" means remuneration paid for 35 employment by an employer to an individual and remuneration 36 received as tips or gratuities in accordance with Sections 3102 and 37 3301 et seq. of the Internal Revenue Code. Wage credits may not 38 exceed eight thousand two hundred sixteen dollars ($8,216) and may 39 not include payments that are excluded from the definition of wages 40 under section 2 of this chapter. 41 (h) For calendar quarters beginning on and after July 1, 2004, and 42 before July 1, 2005, "wage credits" means remuneration paid for 2025 IN 116—LS 6062/DI 153 3 1 employment by an employer to an individual and remuneration 2 received as tips or gratuities in accordance with Sections 3102 and 3 3301 et seq. of the Internal Revenue Code. Wage credits may not 4 exceed eight thousand seven hundred thirty-three dollars ($8,733) and 5 may not include payments that are excluded from the definition of 6 wages under section 2 of this chapter. 7 (i) For calendar quarters beginning on and after July 1, 2005, and 8 before July 1, 2012, "wage credits" means remuneration paid for 9 employment by an employer to an individual and remuneration 10 received as tips or gratuities in accordance with Sections 3102 and 11 3301 et seq. of the Internal Revenue Code. Wage credits may not 12 exceed nine thousand two hundred fifty dollars ($9,250) and may not 13 include payments that are excluded from the definition of wages under 14 section 2 of this chapter. 15 (j) For calendar quarters beginning on and after July 1, 2012, and 16 before July 1, 2025, "wage credits" means remuneration paid for 17 employment by an employer to an individual and remuneration 18 received as tips or gratuities in accordance with Sections 3102 and 19 3301 et seq. of the Internal Revenue Code. Wage credits may not 20 include payments that are excluded from the definition of wages under 21 section 2 of this chapter. 22 (k) For calendar quarters beginning after June 30, 2025, "wage 23 credits" means remuneration paid for employment by an employer 24 to an individual and remuneration received as tips or gratuities in 25 accordance with Sections 3102 and 3301 et seq. of the Internal 26 Revenue Code. Wage credits may not exceed ten thousand six 27 hundred twenty-five dollars ($10,625) and may not include 28 payments that are excluded from the definition of wages under 29 section 2 of this chapter. 30 SECTION 2. IC 22-4-12-2, AS AMENDED BY P.L.2-2011, 31 SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 32 JULY 1, 2025]: Sec. 2. (a) With respect to initial claims filed for any 33 week beginning on and after July 1, 1997, and before July 1, 2012, 34 each eligible individual who is totally unemployed (as defined in 35 IC 22-4-3-1) in any week in the individual's benefit period shall be paid 36 for the week, if properly claimed, benefits at the rate of: 37 (1) five percent (5%) of the first two thousand dollars ($2,000) of 38 the individual's wage credits in the calendar quarter during the 39 individual's base period in which the wage credits were highest; 40 and 41 (2) four percent (4%) of the individual's remaining wage credits 42 in the calendar quarter during the individual's base period in 2025 IN 116—LS 6062/DI 153 4 1 which the wage credits were highest. 2 (a) For purposes of this section, "prior average weekly wage" 3 means the result of: 4 (1) the individual's total wage credits during the individual's 5 base period; divided by 6 (2) fifty-two (52). 7 (b) With respect to initial claims filed for any week beginning on 8 and after July 1, 2012, and before July 1, 2025, each eligible 9 individual who is totally unemployed (as defined in IC 22-4-3-1) in any 10 week in the individual's benefit period shall be paid for the week, if 11 properly claimed, an amount equal to forty-seven percent (47%) of the 12 individual's prior average weekly wage, rounded (if not already a 13 multiple of one dollar ($1)) to the next lower dollar. However, the 14 maximum weekly benefit amount may not exceed three hundred ninety 15 dollars ($390). 16 (c) For purposes of this section, "prior average weekly wage" means 17 the result of: 18 (1) the individual's total wage credits during the individual's base 19 period; divided by 20 (2) fifty-two (52). 21 (c) With respect to initial claims filed for any week beginning 22 after June 30, 2025, each eligible individual who is totally 23 unemployed (as defined in IC 22-4-3-1) in any week in the 24 individual's benefit period shall be paid for the week, if properly 25 claimed, benefits at the rate of: 26 (1) five percent (5%) of the first two thousand dollars ($2,000) 27 of the individual's wage credits in the calendar quarter during 28 the individual's base period in which the wage credits were 29 highest; and 30 (2) four percent (4%) of the individual's remaining wage 31 credits in the calendar quarter during the individual's base 32 period in which the wage credits were highest. 33 (d) Except as provided in section 2.2 of this chapter, an 34 individual's weekly benefit amount may not exceed four hundred 35 forty-five dollars ($445). 36 SECTION 3. IC 22-4-12-2.2 IS ADDED TO THE INDIANA CODE 37 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 38 1, 2025]: Sec. 2.2. (a) This section applies to initial claims filed for 39 any week beginning after June 30, 2025. 40 (b) For purposes of this section, the term "dependent": 41 (1) means: 42 (A) a lawful husband or wife who is unemployed and 2025 IN 116—LS 6062/DI 153 5 1 currently ineligible for Indiana benefits because of 2 insufficient base period wages; 3 (B) a natural child; 4 (C) an adopted child; 5 (D) a stepchild of the claimant, if the stepchild is not 6 receiving temporary assistance to needy families; or 7 (E) a child placed in the claimant's home for adoption by 8 an authorized placement agency or a court of law, if the 9 child: 10 (i) is less than eighteen (18) years of age; and 11 (ii) has received more than one-half (1/2) the cost of 12 support from the claimant during the past ninety (90) 13 days (or for the duration of the relationship, if less) 14 immediately preceding the claimant's benefit year 15 beginning date; and 16 (2) includes the following: 17 (A) A person with a disability at least eighteen (18) years 18 of age who is a child of the claimant and who received 19 more than one-half (1/2) the cost of the person's support 20 from the claimant during the ninety (90) day period 21 immediately preceding the claimant's benefit year 22 beginning date. 23 (B) A child for whom the claimant is the court appointed 24 legal guardian. 25 (c) For purposes of subsection (b)(2): 26 (1) "child" includes: 27 (A) a natural child; 28 (B) an adopted child; 29 (C) a stepchild of the claimant, if the stepchild is not 30 receiving temporary assistance to needy families; or 31 (D) a child placed in the claimant's home for adoption by 32 an authorized placement agency or a court of law; and 33 (2) "person with a disability" means an individual who by 34 reason of physical or mental defect or infirmity, whether: 35 (A) congenital; or 36 (B) acquired by accident, injury, or disease; 37 is totally or partially prevented from achieving the fullest 38 attainable physical, social, economic, mental, and vocational 39 participation in the normal process of living. 40 (d) In addition to the weekly benefit amount determined under 41 section 2 of this chapter, an eligible and qualified individual is 42 entitled to an additional benefit amount of fifty dollars ($50) per 2025 IN 116—LS 6062/DI 153 6 1 week for each dependent claimed by the eligible and qualified 2 individual. However, the total additional weekly benefit provided 3 to an eligible and qualified individual under this subsection may 4 not exceed one hundred fifty dollars ($150). 2025 IN 116—LS 6062/DI 153