In Indiana, employers are not required to provide employees with vacation benefits, either paid or unpaid. If an employer chooses to provide such benefits, it must comply with the terms of its established policy or employment contract.
The rollover policy
- Statutory Provisions Addressing Vacation Pay
If an employer provides paid vacation, it is considered a type of deferred compensation in lieu of wages and is subject to the state’s Wage Payment Statute (Naugle v. Beech Grove City Sch., 864 N.E.2d 1058, 1067 (Ind. 2007)).
- Use-It-or-Lose-It Policy
Not prohibited (Comm’r of Lab., et al v. Int’l Union of Painters, 991 N.E.2d 100 (Ind. 2013)).
- Payment of Accrued Vacation on Termination
Unless an Indiana employer has an arrangement or policy placing limitations on receipt of vacation pay, a discharged employee is entitled to any earned and unused vacation pay (Ind. Heart Assocs., P.C. v. Bahamonde, 714 N.E.2d 309, 311-12 (Ind. Ct. App. 1999)).
No federal or state law in Indiana requires employers to pay out an employee’s accrued sick leave or other paid time off (PTO) at the termination of employment.
Maternity, Paternity, FMLA
Regarding private employees, Indiana has no additional laws regarding Maternity and Paternity leave. Expecting and new parents are entitled to leave under the federal Family and Medical Leave Act (FMLA) and the Pregnancy Disability Act. For more information, look under the section Federal laws, Family and Medical Leave Act and under General Information, Maternity, Paternity, and FMLA.
Indiana adopted a new law regarding paid parental leave that applies to public employees.
Jury Duty Leave
Employers are required to provide employees with unpaid time to perform their jury duties.
An employer may not subject an employee to an adverse employment action for responding to a jury summons or serving on a jury. An employer must provide a notice to the employer.
Employers with 10 or less employees must receive permission from the court to reschedule employee’s jury service if it overlaps with another employee’s.
No federal or state law require an employer to provide the employee with paid or unpaid bereavement leave or with any time off to organize or attend a close family member’s funeral.
Indiana has no voting leave statute or state law requiring employers to provide employees with both paid or unpaid time off to vote.
In addition to USERRA, Indiana military leave laws provide members of the Indiana National Guard with job protection, reinstatement, protection from discrimination and right to attend assembly for drills, training, or other duties
Ind. Code Ann. §§ 10-17-4-1 to 10-17-4-5
Members of U.S. armed services reserves may take up to 15 days unpaid (or paid at employer’s discretion) leave per year for training. Leave does not affect vacation, sick leave, bonus, or promotion rights. Employees must be reinstated to a former or a similar position with no loss of seniority or benefits.
Employees are required to provide 90 days advance notice with specified dates of departure and return, along with proof of completion of the training upon return.
Please consult your local legal counsel to learn more about Indiana Leave Laws.
To learn more about laws in various countries, check out our Leave Laws page.