Indiana’s leave laws offer broad flexibility, placing many of the choices in employers’ hands. From Paid Time Off (PTO) and vacation days to maternity/paternity, sick leave, and leaves like jury duty or military service, this guide walks through the main topics so both employers and employees understand how things work in Indiana.
Paid Time Off (PTO)
In Indiana, there are no state laws that require employers to offer PTO or vacation time as a benefit. The key point is: if an employer chooses to offer PTO or vacation time, then the rules around accrual, payout, termination, and forfeiture must follow whatever the employer’s written policy or contract states.
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Leave quota & accrual: Since the state doesn’t mandate vacation days, employers decide if and how employees earn them. Employers often choose accrual methods (monthly, semimonthly, etc) and may set caps on how much leave can accumulate over time.
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Use-it-or-lose-it rules & rollover: Indiana allows “use-it-or-lose-it” provisions, meaning employers can include terms in their policy that unused vacation or PTO may be forfeited if not used. But these policies must be clearly written and employees must have a reasonable opportunity to use their time.
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Upon termination / payout: If an employee leaves and unused PTO or vacation is owed, the handling depends on the employer’s policy or contract. Without a policy stating otherwise, Indiana courts have held that accrued, unused vacation must be paid. Employers should ensure their policies clearly spell out what happens at separation.
Sick Leave
Indiana does not require private-sector employers to provide paid sick leave by state statute. If an employer does provide sick leave (paid or unpaid), then the employer’s policy governs how it accrues, how it may be used, and whether it is paid out. Federal law such as the Family and Medical Leave Act (FMLA) may provide job-protected unpaid leave, but state law does not mandate separate paid sick leave for all employees.
Maternity, Paternity & Family Leave
Under federal law (FMLA), eligible employees may take up to 12 weeks of unpaid, job-protected leave for qualifying family or medical reasons (such as birth/adoption of a child, or serious health condition). In Indiana, there is no separate state-mandated paid family leave or paid maternity/paternity leave for private employers beyond this.
Indiana does have laws addressing pregnancy accommodations (for employers with 15+ employees) and protections under the Indiana Civil Rights Act against discrimination on the basis of pregnancy or sex. Employers should respond to accommodation requests in a reasonable timeframe.
Payout for maternity, paternity, or adoption leave is not required by Indiana law if the leave is unpaid.
Bereavement Leave (Funeral Leave)
There is no state statute in Indiana that requires employers to offer paid or unpaid bereavement or funeral leave. If an employer chooses to offer it, the policy or practice determines the rules. Otherwise, no payout obligation is imposed by state law.
Jury Duty Leave
Indiana law requires employers to provide unpaid time off for employees summoned for jury duty, this leave is job-protected, meaning the employer cannot penalize an employee for attending jury service. However, employers are not required to pay wages during the jury duty period under state law unless their policy provides for it.
Military Leave
Federal law via the Uniformed Services Employment and Reemployment Rights Act (USERRA) protects employees who serve in the uniformed services, ensuring reinstatement rights and anti-discrimination. Indiana law supplements this: private-sector employers must allow up to 15 days of military leave for training or active duty, but only state or local government employees are guaranteed paid leave. In the private sector, the leave is unpaid unless employer policy says otherwise. Employers must reinstate employees to their former or similar position upon return.
Voting Leave
Indiana does not require employers to provide paid or unpaid leave specifically for voting. Employers have discretion to offer voting time off, but it is not mandated by the state.
State Holidays
Indiana law does not require private employers to provide paid or unpaid time off for state holidays. The state government lists certain official holidays, but private employers may require employees to work on those days unless a policy states otherwise.
Key Takeaways for Employers & Employees
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Employers in Indiana have significant flexibility to design leave and PTO programs, but once a leave policy or contract is in place, the employer must comply with its terms.
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For employees, understanding your employer’s policy is critical: since state law doesn’t guarantee many types of leave or payout, your rights often depend on what your company says.
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For PTO and vacation: if your employer offers it, find out how accrual works, whether there’s a cap or forfeiture (“use-it-or-lose-it”), and what happens when you leave.
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For termination or separation: if you have accrued PTO or vacation and there is a policy or contract promise to pay it out, make sure the policy is followed; otherwise you may have recourse.
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While state law doesn’t mandate many paid leaves in Indiana, federal protections still apply (e.g., FMLA, USERRA). Employers should ensure their policies are consistent with federal law and clearly communicated.
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Good communication is essential. Clear, written policies that employees can easily find, regular reviews, and transparent practices help avoid misunderstandings and legal risk.
Frequently Asked Questions (FAQ) Indiana Leave Laws
Does Indiana require employers to provide Paid Time Off (PTO)?
No. Indiana does not have any state law that requires private employers to offer PTO or vacation time. It’s completely up to each employer to decide whether to provide it. However, if an employer chooses to offer PTO, they must follow their own written policy or employment agreement regarding accrual, use, and payout.
What happens to unused PTO when I leave my job?
That depends on your company’s policy. If your employer’s policy or contract promises payment for unused vacation or PTO when you leave, they must pay it. If the policy clearly states that unused time will not be paid, the employer can legally withhold it. In the absence of any written policy, Indiana courts generally consider earned PTO payable upon separation.
Are “use-it-or-lose-it” PTO policies legal in Indiana?
Yes. Indiana allows “use-it-or-lose-it” policies, which means employers can require employees to use their accrued vacation or PTO by a certain date or lose it. The key requirement is that the policy must be clearly communicated in writing and employees must have a reasonable opportunity to use their time before it expires.
Does Indiana require employers to provide paid sick leave?
No. Indiana does not have a law requiring private employers to provide paid or unpaid sick leave. However, employers that choose to offer it must follow their own policy. Some employees may still be covered by federal laws such as the Family and Medical Leave Act (FMLA), which provides up to 12 weeks of unpaid, job-protected leave for certain medical and family reasons.
What kind of family or parental leave can employees take in Indiana?
Indiana does not have its own state family or parental leave law. Eligible employees can take up to 12 weeks of unpaid leave under the federal FMLA for the birth or adoption of a child, serious health conditions, or to care for a family member. Indiana also provides limited pregnancy-related protections, such as requiring employers with 15 or more employees to consider reasonable pregnancy accommodations.
Are employees in Indiana entitled to paid maternity or paternity leave?
No, state law does not require paid maternity or paternity leave. However, employees covered by FMLA can take up to 12 weeks of unpaid, job-protected leave. Some employers voluntarily offer paid parental leave, so employees should check their company’s benefits policies.
Does Indiana law require employers to provide bereavement or funeral leave?
No. Indiana does not mandate bereavement or funeral leave. If an employer offers it, the policy’s details, such as how many days are allowed and whether it’s paid, are determined by the company. Once offered, employers must follow their stated policy.
Are employees paid while serving on jury duty?
Not necessarily. Indiana requires employers to give employees unpaid time off for jury duty, but it does not require them to pay for that time. Employers cannot penalize or fire employees for performing jury service, and employees may need to show their jury summons as proof of obligation.
What are my rights if I’m called to military duty in Indiana?
Employees called to active duty are protected under both federal and state laws. The federal USERRA law guarantees job protection and reinstatement after military service. Indiana law allows employees up to 15 days of military leave for training or active duty each year. For state and local government workers, this leave is paid; for private employees, it is typically unpaid unless company policy says otherwise.
Do Indiana employees get time off to vote?
No. Indiana law does not require employers to provide time off, paid or unpaid, for voting. However, many employers voluntarily offer flexibility or schedule adjustments to allow employees to vote during polling hours.
Are employers required to provide paid holidays?
No. Private employers in Indiana are not required to offer paid or unpaid holidays. Many choose to do so as part of competitive benefits packages, but it’s not a legal requirement. State and federal government employees, however, typically receive paid holidays based on official calendars.
How does the Family and Medical Leave Act (FMLA) apply in Indiana?
The FMLA applies to most employers with 50 or more employees within a 75-mile radius. Eligible employees, those who have worked for their employer for at least 12 months and 1,250 hours in the previous year, can take up to 12 weeks of unpaid, job-protected leave for qualifying medical or family reasons. Employers must maintain group health insurance during FMLA leave just as if the employee were actively working.
What should employers do to stay compliant with Indiana leave laws?
Employers should maintain clear, written policies for all types of leave, including PTO, vacation, sick, family, and unpaid leave. Policies should be distributed to all employees and consistently enforced. Employers should also make sure their policies align with federal laws like FMLA and USERRA. Regular legal reviews can help ensure continued compliance as laws evolve.
What should employees do if they believe their leave rights have been violated?
Employees who think their employer has violated leave or wage laws should first review the company’s policies and then discuss the issue with HR. If the issue isn’t resolved, employees may contact the Indiana Department of Labor or the U.S. Department of Labor’s Wage and Hour Division to file a complaint or seek guidance.
Why is it important to understand leave policies in Indiana?
Because Indiana gives employers so much control over their own leave policies, both employers and employees must know what’s in their policy documents. For employers, clear policies prevent misunderstandings and potential legal issues. For employees, understanding your rights and benefits ensures you can plan time off responsibly, maintain good communication, and protect your job while taking necessary leave.
Conclusion
In Indiana, many decisions around leave, whether it’s Paid Time Off, vacation, sick leave, maternity/paternity, or other types of time off, are shaped more by employer policy than by state law. While this means employers have freedom, it also means they carry the responsibility of setting fair, clear rules and following them consistently. For employees, success lies in being aware of what your employer’s policy says and what your federal rights provide. When policies are well-written, accessible, and applied fairly, both employers and employees benefit: companies maintain clarity and compliance, and employees know what they can expect and how to plan their time off. In 2026, investing time in reviewing and understanding your leave strategies can help create a healthier, more productive workplace.












