Indiana leave laws offer a flexible framework, placing much of the responsibility on employers to establish their own policies, including how Paid Time Off (PTO) and “Day Off” policies are managed. This guide provides an overview of key aspects like PTO, sick leave, maternity and paternity leave, and other related policies in Indiana. From the lack of state-mandated vacation days to the specifics of military leave and jury duty, this article helps employers stay compliant and employees understand their rights. Whether you’re setting policies or navigating your benefits, this guide will clarify Indiana’s approach to “Day Off” management and leave policies.
Paid Time Off (PTO) in Indiana
Indiana leave laws does not have specific state laws that directly regulate Paid Time Off (PTO). However, companies in Indiana are required to adhere to their own policies or employment contracts when it comes to PTO.
Leave Quota
Indiana leave laws does not mandate employers to provide any vacation days. The state does not require employers to offer either paid or unpaid vacation leave. However, employers have the freedom to create a vacation policy or employment contract that grants such benefits to employees. Once a policy is established, employers must comply with its terms. Additionally, employers are obligated to inform all employees in writing about the details of the vacation policy.
Accrual
While Indiana law does not require vacation accrual, many businesses choose to implement it. Employers have the discretion to determine how vacation time is accrued, whether on a biweekly, semimonthly, or monthly basis, often aligning with the pay period. Employers can also set a cap on the amount of leave an employee can accrue, encouraging regular use of vacation time. It’s important to clearly define accrual policies, especially for new employees, where a reasonable period without accrual may be set.
Roll Over
Indiana law permits the “Use-It-or-Lose-It” policy, meaning employers are not required to allow employees to carry over unused vacation into the next year. Employers who adopt this policy are not obligated to pay for unused vacation days at the end of the year, resulting in forfeiture of any remaining days. However, employees must be given a fair opportunity to take their vacation, and the policy must be communicated clearly.
Statutory Provisions Addressing Vacation Pay
If an employer offers paid vacation, it is considered a form of delayed compensation rather than wages and is subject to Indiana’s Wage Payment Statute.
Payment of Accrued, Unused Vacation on Termination
The handling of accrued, unused vacation upon termination is dictated by the employer’s policy or employment contract. If no specific policy exists, employees are entitled to receive payment for all earned and unused vacation. Employers may also create policies that disqualify employees from receiving accrued vacation if certain conditions, like providing two weeks’ notice or being employed by a specific date, are not met.
Payout
If an employer is obligated to pay for accrued, unused vacation, the employer bears the responsibility for the payout.
Sick Leave in Indiana
Indiana does not have state laws mandating sick leave for employees. The federal Family and Medical Leave Act (FMLA) provides up to 12 weeks of unpaid, job-protected leave for eligible employees.
Federal Laws – Leave Quota
Under FMLA, eligible employees are entitled to take up to 12 weeks of unpaid leave for personal medical needs, maternity/paternity leave, or to care for a close family member with a serious illness. To qualify, employees must have worked for their employer for at least 12 months, clocking in at least 1,250 hours during the previous year. The company must also employ at least 50 people within a 75-mile radius.
Indiana State Laws
Indiana does not require employers in the private sector to provide sick leave, paid or unpaid. However, if an employer opts to offer sick leave benefits, they must adhere to the terms of the employment contract or employee handbook, which may create a legal obligation to provide such leave.
Payout
Sick leave is generally unpaid in Indiana.
Maternity, Paternity, and FMLA in Indiana
Federal Law
The Family and Medical Leave Act (FMLA) grants employees up to 12 weeks of unpaid leave following the birth or adoption of a child. This leave is generally required to be taken continuously unless otherwise specified by the employer.
The Pregnancy Discrimination Act (PDA) further protects employees by prohibiting discrimination based on pregnancy in all aspects of employment, including hiring, firing, pay, job assignments, promotions, layoffs, and benefits.
Additional State Laws in Indiana
Indiana does not mandate private employers to provide family or maternity leave. However, Indiana House Bill 1309 allows employees to request pregnancy accommodations from employers with 15 or more employees. Employers are required to respond to such requests within a reasonable timeframe, but they are not obligated to grant the accommodations. Importantly, employees cannot be retaliated against for requesting or using pregnancy accommodations.
The Indiana Civil Rights Act also prohibits sex-based discrimination, which includes protections related to maternity, pregnancy, and related conditions. This law applies to employers with six or more employees.
Payout
Maternity and paternity leave under Indiana law is unpaid.
Bereavement Leave in Indiana (Funeral Leave)
Indiana law does not require employers to provide bereavement leave. However, if an employer chooses to offer it, they must follow the established policy or practice.
Payout
Bereavement leave in Indiana is unpaid.
Jury Duty Leave in Indiana
Employers in Indiana must provide unpaid time off for employees to fulfill their jury duty obligations. This time off is job-protected, meaning employers cannot penalize employees for attending jury duty. Employees may need to provide their jury summons as proof to receive the necessary leave.
Payout
Indiana employers are not required to pay employees for jury duty leave.
Military Leave in Indiana
Federal Law
The Uniformed Services Employment and Reemployment Rights Act (USERRA) protects members of the Army and Air National Guard called to active duty. Employees cannot be discriminated against or terminated due to their military service.
Indiana State Law
Indiana law requires employers to allow employees to take up to 15 days of military leave for training or active duty. While state and local employees receive paid leave, private sector employees do not, unless the employer chooses to provide it. Employers must be notified 90 days in advance of the leave dates, and employees must be reinstated to their prior position or a comparable one upon their return.
The Indiana Military Family Leave Law provides additional protections, allowing certain employees to take up to 10 days of job-protected leave per year to spend time with a family member called to active duty.
Payout
In the private sector, military leave is unpaid unless the employer decides otherwise.
Voting Leave in Indiana
Indiana does not have a law requiring employers to provide time off for voting. Employers are not obligated to offer either paid or unpaid leave for employees to vote.
Payout
Voting leave is unpaid.
Indiana State Holidays in 2024
Indiana law does not guarantee employees paid or unpaid time off on holidays. Private employers are not required to provide holiday leave and can require employees to work on holidays. Although many employers offer paid holidays, it is not mandatory. Additionally, there is no requirement to pay premium rates for employees working on holidays unless it qualifies as overtime under state laws. Indiana officially observes 14 state holidays.