When planning time off in Indiana, it’s important to stay informed about Indiana Leave Laws, holiday policies, and the best tools for managing your time off, such as the Day Off app. In 2025, Indiana’s employment laws provide a framework for various types of leave, including paid time off (PTO), sick leave, and other essential leave types such as jury duty and family leave. These laws help balance the needs of employees and employers by ensuring that workers have access to necessary time off while maintaining productivity. Additionally, knowing the state-recognized holidays is crucial for planning vacations or business closures. This article provides a comprehensive guide to Indiana Leave Laws, holidays in 2025, and how the Day Off app can help you manage your time off effectively, ensuring that you navigate your rights and responsibilities as an employee or employer with ease.
Paid Time Off (PTO) in Indiana
Leave Quota
Indiana does not mandate a specific amount of PTO or vacation leave, leaving the decision to the employer. Companies may set their own leave quotas based on length of service, employee status, or other factors. Typically, employees accrue a certain number of PTO days each year, with some employers offering a fixed number of days while others allow for incremental accrual based on years of service.
Accrual
PTO in Indiana is often accrued over time. Many employers opt for an accrual system where employees earn a certain number of PTO hours per pay period. For example, an employee might earn one day of PTO for every month worked, adding up to 12 days per year. This approach provides employees with a gradual buildup of PTO, allowing them to take time off as needed throughout the year.
Rollover
Indiana leave laws does not require employers to allow unused PTO to rollover from year to year. However, many companies do offer PTO rollover as a benefit. The policies vary, with some employers allowing full rollover of unused PTO, while others cap the number of days that can be carried over into the next year. In some cases, employers may have a “use-it-or-lose-it” policy, requiring employees to use their PTO within a set timeframe.
Payment of Accrued, Unused Vacation on Termination
Indiana leave laws does not specifically mandate that employers pay out unused vacation or PTO upon termination unless it is outlined in the employer’s policies or contracts. However, if an employer has a policy in place that provides for the payout of accrued, unused vacation, they are generally obligated to honor it. This can also depend on whether the PTO is considered part of wages earned, in which case it must be paid upon termination. Employees should review their company’s PTO policy to understand whether they are entitled to receive compensation for unused vacation when leaving a job.
Sick Leave in Indiana
Federal Laws – Leave Quota
Under the Family and Medical Leave Act (FMLA), eligible employees are entitled to up to 12 weeks of unpaid, job-protected leave per year for specific family and medical reasons. FMLA applies to all public agencies, including local, state, and federal employers, as well as private sector employers with 50 or more employees working within a 75-mile radius.
Key reasons employees can use FMLA include:
- Personal Health Condition: A serious health condition that prevents the employee from performing their job.
- Family Member Care: Caring for an immediate family member (spouse, child, or parent) with a serious health condition.
- Childbirth/Adoption: The birth or adoption of a child, including foster care placement.
- Military Exigency: Certain situations related to the deployment of a family member in the military.
During FMLA leave, the employee’s job is protected, meaning they must be reinstated to their original or an equivalent position when they return. However, FMLA leave is unpaid, which means employees will not receive their regular salary unless they are allowed or choose to use accrued paid leave, such as PTO or sick days, concurrently with FMLA.
While FMLA does not impose a specific leave quota for paid sick leave, it provides vital job protection for eligible employees facing serious medical issues or family emergencies. It ensures employees have the time they need without risking their employment status.
State Laws – Leave Quota
Unlike some states that have implemented mandatory paid sick leave laws, Indiana does not have any specific state laws requiring private-sector employers to offer paid sick leave. This lack of a statewide mandate gives employers complete discretion to determine how, or if, they offer paid sick leave to their employees.
Public vs. Private Sector Employees
Private Sector: Indiana leaves the decision of providing paid sick leave entirely to private employers. This means that each employer can create their own policies regarding how much sick leave is granted, how it is accrued, and whether unused sick leave can roll over into the next year. Some companies may offer paid sick leave as part of a benefits package, often integrated into a Paid Time Off (PTO) system that includes vacation, sick leave, and personal days.
Public Sector: State and local government employees may have more structured sick leave benefits that are governed by public employment laws or local government policies. Public employees often have clearly defined leave quotas and accrual systems, which differ from those in the private sector.
Accrual and Rollover Policies
While there are no statutory requirements for sick leave accrual and rollover in Indiana, many employers voluntarily establish sick leave policies to attract and retain employees.
Accrual: Some employers use an accrual system where sick leave is earned over time, usually based on the number of hours worked or length of service. For example, employees may earn 1 hour of sick leave for every 30 hours worked, which they can use as needed.
Rollover: Employers may choose to implement a rollover policy that allows employees to carry unused sick days into the following year. The details of these policies can vary significantly:
- Unlimited Rollover: Some companies allow employees to carry over all their unused sick leave indefinitely.
- Capped Rollover: Other employers may limit the amount of sick leave that can be rolled over to the next year, capping it at a certain number of days or hours.
- Use-it-or-Lose-it: In some cases, employers may implement a “use-it-or-lose-it” policy, meaning employees must use their sick leave within the calendar or fiscal year, or it will expire.
Payment of Accrued, Unused Sick Leave on Termination
Indiana law does not require employers to pay out unused sick leave upon termination of employment. Whether an employee receives compensation for unused sick leave at the end of their employment depends entirely on the employer’s policies. Typically:
- Payout upon Termination: Some employers choose to offer a payout for unused sick leave as part of a severance package, especially if the company treats accrued sick leave as part of earned wages.
- No Payout: Many employers do not provide a payout for unused sick leave, particularly if the company policy treats sick leave as a benefit to be used during employment rather than as an earned wage.
To determine whether an employee is entitled to a payout for unused sick leave, it’s essential to review the company’s employee handbook or specific employment contract.
Maternity, Paternity, FMLA in Indiana
Federal Laws
The Family and Medical Leave Act (FMLA) is a federal law that provides eligible employees with up to 12 weeks of unpaid, job-protected leave in a 12-month period for specific family and medical reasons, including:
- Maternity Leave: For the birth of a child and care for the newborn within the first year of life.
- Paternity Leave: For the birth of a child and to bond with the newborn during the first year of life.
- Adoption or Foster Care: For the placement of a child for adoption or foster care and to care for the child within the first year of placement.
During FMLA leave, the employee’s job is protected, meaning they are entitled to return to the same or an equivalent position upon their return. Additionally, employers must maintain the employee’s health benefits during FMLA leave as if they had continued working. However, the FMLA leave is unpaid, so while employees can take time off, they may not receive any income during that period unless they use accrued paid leave (such as PTO) concurrently.
Eligibility for FMLA
To qualify for FMLA in Indiana:
- The employer must have at least 50 employees within a 75-mile radius.
- The employee must have worked for the employer for at least 12 months (not necessarily consecutively).
- The employee must have worked at least 1,250 hours during the 12 months prior to the start of the leave.
It’s important to note that FMLA does not mandate paid maternity or paternity leave but ensures job protection during the leave period.
Additional State Laws
Indiana does not have additional state laws that specifically mandate paid maternity or paternity leave beyond what is required under FMLA. The state leaves the decision of offering paid parental leave to individual employers. This lack of state-specific regulations means that parental leave policies vary widely across companies, with some employers providing generous paid leave benefits and others offering only unpaid leave.
However, some key aspects of family leave policies in Indiana may still be governed by federal and state provisions depending on the sector:
- Public Sector Employees: Government employees at the state and local levels may have access to additional leave benefits not available to private-sector employees. This can include paid parental leave options or extended leave periods.
- Private Sector: Private employers in Indiana may offer paid maternity or paternity leave as part of their benefits package, though this is not required by law. Some companies offer paid leave through short-term disability insurance, which may cover a portion of an employee’s wages during maternity leave.
Maternity Leave in Indiana
Under FMLA, new mothers are entitled to take up to 12 weeks of unpaid leave for childbirth and to care for their newborn. Some employers may also provide paid maternity leave, but this is not mandated by Indiana law. In cases where paid leave is not offered, mothers can use accrued PTO, sick days, or short-term disability insurance, if available, to receive income during their leave.
- Health Benefits: While on FMLA maternity leave, the employer is required to maintain the mother’s health insurance coverage.
- Job Protection: Mothers are guaranteed the right to return to their job or an equivalent position upon completing their leave under FMLA.
Paternity Leave in Indiana
Fathers in Indiana are also eligible for up to 12 weeks of unpaid leave under FMLA for the birth or adoption of a child. Like maternity leave, this leave is unpaid unless the employer offers paid leave benefits. Some fathers choose to use accrued vacation or PTO during this period to maintain income.
- Paternity Leave Policies: Employer policies on paternity leave can vary. Some companies offer paid paternity leave, while others provide unpaid leave under FMLA. Fathers should check their company’s parental leave policy to understand their options.
Adoption and Foster Care Leave in Indiana
For families adopting a child or taking in a child through foster care, FMLA provides the same job-protected, unpaid leave benefits as it does for birth parents. The 12-week leave period can be used to bond with the new child and attend to their care.
Employers are not required to offer paid leave for adoption or foster care, but they may choose to do so. Employees adopting or fostering a child should consult their company’s specific policies on leave for such situations.
Employer Discretion and Enhanced Benefits
While Indiana does not have additional state-mandated maternity or paternity leave laws, employers are free to offer enhanced benefits beyond what is required under FMLA. Many companies recognize the importance of providing paid parental leave to attract and retain top talent.
Some employers in Indiana may offer:
- Paid Maternity and Paternity Leave: Employers may provide a set number of paid weeks for new parents, either as a standalone benefit or through a short-term disability program.
- Extended Leave: Some employers allow extended periods of leave beyond the 12 weeks provided under FMLA, with or without pay.
- Workplace Flexibility: Companies may offer flexible work arrangements, such as remote work or reduced hours, for new parents returning from leave.
Bereavement Leave in Indiana
In 2025, Indiana does not have a state law requiring employers to provide bereavement leave. However, many employers voluntarily offer this type of leave as part of their benefits package. Bereavement leave, also known as funeral leave, allows employees to take time off to grieve and attend the funeral or memorial services of a close family member. Typically, employers provide between 3 to 5 days of paid or unpaid leave for bereavement, depending on the relationship to the deceased. The specifics of bereavement leave, including eligibility, length of leave, and whether the leave is paid or unpaid, are usually determined by individual company policies. Employees should check with their HR department to understand their employer’s bereavement leave policies for 2025.
Jury Duty Leave in Indiana
In 2025, Indiana law protects employees’ right to take time off for jury duty. Under Indiana state law, employers are required to allow employees to take leave for jury service without fear of termination or retaliation. While employers are not obligated to provide paid leave during jury duty, they cannot penalize employees for fulfilling their civic duty. However, some employers may offer paid jury duty leave as part of their benefits package. Employees must provide their employer with proof of jury duty, such as a summons or certificate of attendance, to ensure their time off is properly documented. Upon completion of jury service, employees are entitled to return to their original job or an equivalent position. It’s important for workers to review their employer’s specific policies regarding paid or unpaid jury duty leave.
Military Leave in Indiana
In 2025, employees in Indiana who serve in the military are protected by both federal and state laws when it comes to military leave. Under the Uniformed Services Employment and Reemployment Rights Act (USERRA), employers are required to provide military leave to employees who are called to active duty, training, or other military service, ensuring that their civilian jobs are protected. Indiana also supports military leave for public employees, offering paid leave for up to 15 days per calendar year for active duty or training. Private employers, while not required to offer paid leave, must allow unpaid leave and guarantee job protection under USERRA. Upon completion of military service, employees are entitled to be reinstated to their original position or a comparable one with the same benefits, pay, and seniority. Employers in Indiana are prohibited from discriminating against employees based on their military obligations, ensuring that workers are able to serve their country without jeopardizing their civilian employment.
Voting Leave in Indiana
In 2025, Indiana leave laws provides employees with the right to take time off to vote in elections. Under Indiana state law, if an employee’s work schedule does not provide them with at least two consecutive hours outside of working hours to vote while polls are open, they are entitled to paid time off to vote. Employers must allow employees sufficient time to vote, usually up to two hours, without any deduction in pay. However, the employer can specify the time when employees may take their leave to minimize disruption to the workday. Employees should inform their employer prior to Election Day if they need time off to vote. This law ensures that Indiana workers can fulfill their civic duty without compromising their employment.
Indiana State Holidays in 2025
In 2025, Indiana recognizes several state holidays, during which state government offices and many businesses close to observe these occasions. On these days, employees of state agencies typically receive a paid day off. Private employers are not required to observe state holidays or offer paid time off, though many do as part of their benefits package. Additionally, some businesses may remain open but with limited hours. Indiana residents should check with their employers to confirm holiday schedules and any special provisions for time off in 2025.
Holiday
New Year’s Day
Martin Luther King Jr. Day
Presidents’ Day
Good Friday
Memorial Day
Independence Day
Labor Day
Veterans Day
Thanksgiving Day
Day After Thanksgiving
Christmas Day
Date
Wednesday, January 1
Monday, January 20
Monday, February 17
Friday, April 18
Monday, May 26
Friday, July 4
Monday, September 1
Tuesday, November 11
Thursday, November 27
Friday, November 28
Thursday, December 25