Shown verbatim: the complete text as captured from the official PDF posted by the Indiana General Assembly, fetched 2026-09-25. Page and line markers are part of the official record; nothing is edited or removed. This is the current version. The official bill page.
Second Regular Session of the 124th General Assembly (2026)
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 2025 Regular Session of the General Assembly.
SENATE ENROLLED ACT No. 162
AN ACT to amend the Indiana Code concerning labor and safety.
Be it enacted by the General Assembly of the State of Indiana:
SECTION 1. IC 22-4-2-41, AS ADDED BY P.L.200-2025,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 41. (a) Except as provided in subsection (b), as
used in this article, "suitable work" means the following with respect
to extended benefit claims:
(1) For an individual classified as having good job prospects
under IC 22-4-14-6.1, any work which would be considered
suitable work for the individual under IC 22-4-15-2(e).
(2) For an individual classified as having not good job prospects
under IC 22-4-14-6.1, any work which the individual has the
physical and mental capacity to perform.
(b) The term does not include any work that meets the following
conditions:
(1) If the gross average weekly remuneration payable to the
individual for the position would not exceed the sum of:
(A) the individual's average weekly benefit amount for the
individual's benefit year; plus
(B) the amount (if any) of supplemental unemployment
compensation benefits (as defined in Section 501(c)(17)(D) of
the Internal Revenue Code) payable to the individual for the
week.
(2) If the position was not offered to the individual in writing or
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was not listed with the department.
(3) If failure to accept the new work would not result in a denial
of compensation under the provisions of this article, to the extent
that the provisions are not inconsistent with the applicable federal
law.
(4) If the position pays less than the higher of:
(A) the minimum wage provided by 29 U.S.C. 206(a)(1) (the
Fair Labor Standards Act of 1938), without regard to any
exception; or
(B) the state minimum wage (IC 22-2-2).
SECTION 2. IC 22-4-4-3, AS AMENDED BY P.L.122-2019,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 3. (a) For calendar quarters beginning on and after
July 1, 1997, and before July 1, 1998, "wage credits" means
remuneration paid for employment by an employer to an individual and
remuneration received as tips or gratuities in accordance with Sections
3102 and 3301 et seq. of the Internal Revenue Code. Wage credits may
not exceed five thousand four hundred dollars ($5,400) and may not
include payments specified in section 2 of this chapter.
(b) For calendar quarters beginning on and after July 1, 1998, and
before July 1, 1999, "wage credits" means remuneration paid for
employment by an employer to an individual and remuneration
received as tips or gratuities in accordance with Sections 3102 and
3301 et seq. of the Internal Revenue Code. Wage credits may not
exceed five thousand six hundred dollars ($5,600) and may not include
payments that are excluded from the definition of wages under section
2 of this chapter.
(c) For calendar quarters beginning on and after July 1, 1999, and
before July 1, 2000, "wage credits" means remuneration paid for
employment by an employer to an individual and remuneration
received as tips or gratuities in accordance with Sections 3102 and
3301 et seq. of the Internal Revenue Code. Wage credits may not
exceed five thousand eight hundred dollars ($5,800) and may not
include payments that are excluded from the definition of wages under
section 2 of this chapter.
(d) For calendar quarters beginning on and after July 1, 2000, and
before July 1, 2001, "wage credits" means remuneration paid for
employment by an employer to an individual and remuneration
received as tips or gratuities in accordance with Sections 3102 and
3301 et seq. of the Internal Revenue Code. Wage credits may not
exceed six thousand seven hundred dollars ($6,700) and may not
include payments that are excluded from the definition of wages under
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section 2 of this chapter.
(e) For calendar quarters beginning on and after July 1, 2001, and
before July 1, 2002, "wage credits" means remuneration paid for
employment by an employer to an individual and remuneration
received as tips or gratuities in accordance with Sections 3102 and
3301 et seq. of the Internal Revenue Code. Wage credits may not
exceed seven thousand three hundred dollars ($7,300) and may not
include payments that are excluded from the definition of wages under
section 2 of this chapter.
(f) For calendar quarters beginning on and after July 1, 2002, and
before July 1, 2003, "wage credits" means remuneration paid for
employment by an employer to an individual and remuneration
received as tips or gratuities in accordance with Sections 3102 and
3301 et seq. of the Internal Revenue Code. Wage credits may not
exceed seven thousand nine hundred dollars ($7,900) and may not
include payments that are excluded from the definition of wages under
section 2 of this chapter.
(g) For calendar quarters beginning on and after July 1, 2003, and
before July 1, 2004, "wage credits" means remuneration paid for
employment by an employer to an individual and remuneration
received as tips or gratuities in accordance with Sections 3102 and
3301 et seq. of the Internal Revenue Code. Wage credits may not
exceed eight thousand two hundred sixteen dollars ($8,216) and may
not include payments that are excluded from the definition of wages
under section 2 of this chapter.
(h) For calendar quarters beginning on and after July 1, 2004, and
before July 1, 2005, "wage credits" means remuneration paid for
employment by an employer to an individual and remuneration
received as tips or gratuities in accordance with Sections 3102 and
3301 et seq. of the Internal Revenue Code. Wage credits may not
exceed eight thousand seven hundred thirty-three dollars ($8,733) and
may not include payments that are excluded from the definition of
wages under section 2 of this chapter.
(i) For calendar quarters beginning on and after July 1, 2005, and
before July 1, 2012, "wage credits" means remuneration paid for
employment by an employer to an individual and remuneration
received as tips or gratuities in accordance with Sections 3102 and
3301 et seq. of the Internal Revenue Code. Wage credits may not
exceed nine thousand two hundred fifty dollars ($9,250) and may not
include payments that are excluded from the definition of wages under
section 2 of this chapter.
(j) For calendar quarters beginning on and after July 1, 2012, "Wage
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credits" means remuneration paid for employment by an employer to
an individual and remuneration received as tips or gratuities in
accordance with Sections 3102 and 3301 et seq. of the Internal
Revenue Code. Wage credits may not include payments that are
excluded from the definition of wages under section 2 of this chapter.
SECTION 3. IC 22-4-5-1, AS AMENDED BY P.L.85-2023,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 1. (a) "Deductible income" wherever used in this
article, means income deductible from the weekly benefit amount of an
individual in any week, and shall include, but shall not be limited to,
any of the following:
(1) Remuneration for services from employing units, whether or
not such remuneration is subject to contribution under this article,
except as provided in subsection (c).
(2) Dismissal pay or severance pay, including:
(A) money that an employer pays to a dismissed employee to
compensate the employee for income lost due to
unemployment; and
(B) remuneration paid to a dismissed employee under a
separation agreement.
(3) Vacation pay.
(4) (3) Pay for idle time.
(5) Sick pay.
(6) (4) Traveling expenses granted to an individual by an
employing unit and not fully accounted for by such individual.
(7) (5) Net earnings from self-employment.
(8) (6) Payments in lieu of compensation for services.
(9) (7) Awards by the National Labor Relations Board of
additional pay, back pay, or for loss of employment, or any such
payments made under an agreement entered into by an employer,
a union, and the National Labor Relations Board.
(10) (8) Payments made to an individual by an employing unit
pursuant to the terms of the Fair Labor Standards Act (Federal
Wage and Hour Law, 29 U.S.C. 201 et seq.).
(b) Deductible income shall not include one hundred dollars ($100)
of remuneration paid or payable to an individual with respect to any
week.
(c) For the purpose of deductible income only, remuneration for
services from employing units does not include holiday pay, sick pay,
vacation pay, bonuses, gifts, or prizes awarded to an employee by an
employing unit.
(d) Deductible income does not include a supplemental
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unemployment insurance benefit made under a valid negotiated
contract or agreement.
(e) Deductible income does not include any payments made to an
individual by a court system under a summons for jury service.
SECTION 4. IC 22-4-5-2, AS AMENDED BY P.L.9-2024,
SECTION 439, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 2. (a) Payments in lieu of a vacation
awarded to an employee by an employing unit shall be considered as
deductible income in and with respect to the week in which the
vacation occurs.
(b) (a) The payment of accrued vacation pay, dismissal pay or
severance pay to an individual separated from employment by an
employing unit shall be allocated to the period of time for which such
payment is made immediately following the date of separation, and an
individual receiving such payments shall not be deemed unemployed
with respect to a week during which such allocated deductible income
equals or exceeds the weekly benefit amount of the individual's claim.
(c) (b) Pay for:
(1) idle time;
(2) sick pay;
(3) (2) traveling expenses granted to an individual by an
employing unit and not fully accounted for by such individual;
(4) (3) earnings from self-employment;
(5) (4) awards by the National Labor Relations Board of
additional pay, back pay, or for loss of employment;
(6) (5) payments made under an agreement entered into by an
employer, a union, and the National Labor Relations Board; or
(7) (6) payments to an employee by an employing unit made
pursuant to the terms and provisions of the Fair Labor Standards
Act;
shall be deemed to constitute deductible income with respect to the
week or weeks for which such payments are made. However, if
payments made under subdivision (5) (4) or (6) (5) are not, by the
terms of the order or agreement under which the payments are made,
allocated to any designated week or weeks, then, and in such cases,
such payments shall be considered as deductible income in and with
respect to the week in which the same is actually paid.
(d) Payment of vacation pay shall be deemed deductible income
with respect to the week or weeks falling within such vacation period
for which vacation payment is made.
SECTION 5. IC 22-4-5-3, AS AMENDED BY P.L.122-2019,
SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
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JULY 1, 2026]: Sec. 3. (a) This section applies for purposes of
deductible income only.
(b) If:
(1) an employee and an employing unit have agreed in a labor
contract that is negotiated on or before May 10, 1987, and any
renewals of the contract, to establish a work week that is a
different term of seven (7) days than the calendar week;
(2) the employing unit has filed a written notice with the
department in the form and manner prescribed by the department
stating that a work week other than the calendar week has been
established under the labor contract between the employing unit
and its employees; and
(3) the notice has been filed with the department before an
employee working on the contractual work week files a claim for
unemployment compensation benefits;
the work week specified in the contract may be used for purposes of
this chapter.
SECTION 6. IC 22-4-7-1, AS AMENDED BY P.L.171-2016,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 1. (a) Before January 1, 2015, "employer" means:
(1) any employing unit which for some portion of a day, but not
necessarily simultaneously, in each of twenty (20) different
weeks, whether or not such weeks are or were consecutive within
either the current or the preceding year, has or had in
employment, and/or has incurred liability for wages payable to,
one (1) or more individuals (irrespective of whether the same
individual or individuals are or were employed in each such day);
or
(2) any employing unit which in any calendar quarter in either the
current or preceding calendar year paid for service in employment
wages of one thousand five hundred dollars ($1,500) or more,
except as provided in section 2(e), 2(h), and 2(i) of this chapter.
(b) (a) After December 31, 2014, "Employer" means either of the
following:
(1) An employing unit that has incurred liability for wages
payable to one (1) or more individuals.
(2) An employing unit that in any calendar quarter during the
current or preceding calendar year paid for service in employment
wages of one dollar ($1) or more, except as provided in section
2(e), 2(h), and 2(i) of this chapter.
(c) (b) For the purpose of this definition, if any week includes both
December 31, and January 1, the days up to January 1 shall be deemed
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one (1) calendar week and the days beginning January 1 another such
week.
(d) (c) For purposes of this section, "employment" shall include
services which would constitute employment but for the fact that such
services are deemed to be performed entirely within another state
pursuant to an election under an arrangement entered into by the
department (pursuant to IC 22-4-22) and an agency charged with the
administration of any other state or federal unemployment
compensation law.
SECTION 7. IC 22-4-8-2, AS AMENDED BY P.L.200-2025,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 2. The term "employment" shall include:
(a) An individual's entire service performed within or both within
and without Indiana if the service is localized in Indiana.
(b) An individual's entire service performed within or both within
and without Indiana if the service is not localized in any state, but some
of the service is performed in Indiana and:
(1) the base of operations, or, if there is no base of operations,
then the place from which such service is directed or controlled
is in Indiana;
(2) the base of operations or place from which such service is
directed or controlled is not in any state in which some part of the
service is performed but the individual's residence is in Indiana;
or
(3) such service is not covered under the unemployment
compensation law of any other state or Canada, and the place
from which the service is directed or controlled is in Indiana.
(c) Services not covered under subsections (a) and (b) and
performed entirely without Indiana, with respect to no part of which
contributions are required and paid under an unemployment
compensation law of any other state or of the United States, shall be
deemed to be employment subject to this article if the department
approves the election of the individual performing such services and
the employing unit for which such services are performed, that the
entire services of such individual shall be deemed to be employment
subject to this article.
(d) Services covered by an election duly approved by the
department, in accordance with an agreement pursuant to IC 22-4-22-1
through IC 22-4-22-5, shall be deemed to be employment during the
effective period of such election.
(e) Service shall be deemed to be localized within a state if:
(1) the service is performed entirely within such state; or
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(2) the service is performed both within and without such state,
but the service performed without such state is incidental to the
individual's service within the state, such as is temporary or
transitory in nature or consists of isolated transactions.
(f) Periods of vacation with pay or leave with pay, other than
military leave granted or given to an individual by an employer.
(g) Notwithstanding any other provisions of this article, the term
employment shall also include all services performed by an officer or
member of the crew of an American vessel or American aircraft, on or
in connection with such vessel or such aircraft, provided that the
operating office, from which the operations of such vessel operating on
navigable waters within or the operations of such aircraft within, or the
operation of such vessel or aircraft within and without the United States
are ordinarily and regularly supervised, managed, directed, and
controlled, is within this state.
(h) Services performed for an employer which is subject to
contribution solely by reason of liability for any federal tax against
which credit may be taken for contributions paid into a state
unemployment compensation fund.
(i) The following:
(1) Service performed after December 31, 1971, by an individual
in the employ of this state or any of its instrumentalities (or in the
employ of this state and one (1) or more other states or their
instrumentalities) for a hospital or eligible postsecondary
educational institution located in Indiana.
(2) Service performed after December 31, 1977, by an individual
in the employ of this state or a political subdivision of the state or
any instrumentality of the state or a political subdivision, or any
instrumentality which is wholly owned by the state and one (1) or
more other states or political subdivisions, if the service is
excluded from "employment" as defined in Section 3306(c)(7) of
the Federal Unemployment Tax Act (26 U.S.C. 3306(c)(7)).
However, service performed after December 31, 1977, as the
following is excluded:
(A) An elected official.
(B) A member of a legislative body or of the judiciary of a
state or political subdivision.
(C) A member of the state national guard or air national guard.
(D) An employee serving on a temporary basis in the case of
fire, snow, storm, earthquake, flood, or similar emergency.
(E) An individual in a position which, under the laws of the
state, is designated as:
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(i) a major nontenured policymaking or advisory position; or
(ii) a policymaking or advisory position the performance of
the duties of which ordinarily does not require more than
eight (8) hours per week.
(3) Service performed after March 31, 1981, by an individual
whose service is part of an unemployment work relief or work
training program assisted or financed in whole by any federal
agency or an agency of this state or a political subdivision of this
state, by an individual receiving such work relief or work training
is excluded.
(j) Service performed after December 31, 1971, by an individual in
the employ of a religious, charitable, educational, or other organization,
but only if the following conditions are met:
(1) The service is excluded from "employment" as defined in the
Federal Unemployment Tax Act solely by reason of Section
3306(c)(8) of that act (26 U.S.C. 3306(c)(8)).
(2) The organization had four (4) or more individuals in
employment within the state of Indiana, for some portion of a day
in each of twenty (20) different weeks, whether or not such weeks
were consecutive, within either the current or preceding calendar
year, regardless of whether they were employed at the same
moment of time.
(3) For the purposes of subdivisions (1) and (2), the term
"employment" does not apply to service performed as follows:
(A) In the employ of:
(i) a church or convention or association of churches; or
(ii) an organization which is operated primarily for religious
purposes and which is operated, supervised, controlled, or
principally supported by a church or convention or
association of churches.
(B) By a duly ordained, commissioned, or licensed minister of
a church in the exercise of his ministry or by a member of a
religious order in the exercise of duties required by such order.
(C) Before January 1, 1978, in the employ of a school which
is not an eligible postsecondary educational institution.
(D) In a facility conducted for the purpose of carrying out a
program of rehabilitation for individuals whose earning
capacity is impaired by age or physical or mental deficiency or
injury or providing remunerative work for individuals who
because of their impaired physical or mental capacity cannot
be readily absorbed in the competitive labor market by an
individual receiving such rehabilitation or remunerative work.
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(E) As part of an unemployment work relief or work training
program assisted or financed in whole or in part by any federal
agency or an agency of a state or political subdivision thereof,
by an individual receiving such work relief or work training.
(k) The service of an individual who is a citizen of the United
States, performed outside the United States (except in Canada), after
December 31, 1971, in the employ of an American employer (other
than service which is deemed "employment" under the provisions of
subsection (a), (b), or (e) or the parallel provisions of another state's
law), if the following apply:
(1) The employer's principal place of business in the United States
is located in this state.
(2) The employer has no place of business in the United States,
but the employer is:
(A) an individual who is a resident of this state;
(B) a corporation which is organized under the laws of this
state;
(C) a partnership, limited liability partnership, or a trust and
the number of the partners or trustees who are residents of this
state is greater than the number who are residents of any one
(1) other state; or
(D) an association, a joint venture, an estate, a limited liability
company, a joint stock company, or an insurance company
(referred to as an "entity" in this clause), and either:
(i) the entity is organized under the laws of this state; or
(ii) the number of owners, members, or beneficiaries who
are residents of this state is greater than the number who are
residents of any one (1) other state.
(3) None of the criteria of subdivisions (1) and (2) is met but the
employer has elected coverage in this state or, the employer
having failed to elect coverage in any state, the individual has
filed a claim for benefits, based on such service, under the law of
this state.
(4) An "American employer," for purposes of this subsection,
means:
(A) an individual who is a resident of the United States;
(B) a partnership or limited liability partnership, if two-thirds
(2/3) or more of the partners are residents of the United States;
(C) a trust, if all of the trustees are residents of the United
States; or
(D) a corporation, an association, a joint venture, an estate, a
limited liability company, a joint stock company, or an
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insurance company organized or established under the laws of
the United States or of any state.
(l) The term "employment" also includes the following:
(1) Service performed after December 31, 1977, by an individual
in agricultural labor (as defined in section 3(c) of this chapter)
when the service is performed for an employing unit which:
(A) during any calendar quarter in either the current or
preceding calendar year paid cash remuneration of twenty
thousand dollars ($20,000) or more to individuals employed in
agricultural labor; or
(B) for some portion of a day in each of twenty (20) different
calendar weeks, whether or not the weeks were consecutive, in
either the current or the preceding calendar year, employed in
agricultural labor ten (10) or more individuals, regardless of
whether they were employed at the same time.
(2) For the purposes of this subsection, any individual who is a
member of a crew furnished by a crew leader to perform service
in agricultural labor for any other person shall be treated as an
employee of the crew leader:
(A) if the crew leader holds a valid certificate of registration
under the Farm Labor Contractor Registration Act of 1963, or
substantially all the members of the crew operate or maintain
tractors, mechanized harvesting or crop dusting equipment, or
any other mechanized equipment, which is provided by the
crew leader; and
(B) if the individual is not an employee of another person
within the meaning of section 1 of this chapter.
(3) For the purposes of subdivision (1), in the case of an
individual who is furnished by a crew leader to perform service
in agricultural labor for any other person and who is not treated as
an employee of the crew leader under subdivision (2):
(A) the other person and not the crew leader shall be treated as
the employer of the individual; and
(B) the other person shall be treated as having paid cash
remuneration to the individual in an amount equal to the
amount of cash remuneration paid to the individual by the
crew leader (either on the individual's own behalf or on behalf
of the other person) for the service in agricultural labor
performed for the other person.
(4) For the purposes of this subsection, the term "crew leader"
means an individual who:
(A) furnishes individuals to perform service in agricultural
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labor for any other person;
(B) pays (either on the individual's own behalf or on behalf of
the other person) the agricultural laborers furnished by the
individual for the service in agricultural labor performed by
them; and
(C) has not entered into a written agreement with the other
person under which the individual is designated as an
employee of the other person.
(m) The term "employment" includes domestic service after
December 31, 1977, in a private home, local college club, or local
chapter of a college fraternity or sorority performed for a person who
paid cash remuneration of one thousand dollars ($1,000) or more after
December 31, 1977, in the current calendar year or the preceding
calendar year to individuals employed in the domestic service in any
calendar quarter.
SECTION 8. IC 22-4-10-3, AS AMENDED BY P.L.2-2011,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 3. (a) This subsection applies before January 1,
2011. Except as provided in section 1(b) through 1(e) of this chapter,
each employer shall pay contributions equal to five and six-tenths
percent (5.6%) of wages, except as otherwise provided in IC 22-4-11-2,
IC 22-4-11-3, IC 22-4-11.5, and IC 22-4-37-3.
(b) This subsection applies after December 31, 2010. Except as
provided in section 1(b) through 1(e) of this chapter and IC 22-4-37-3,
each employer shall pay contributions equal to the amount determined
or estimated by the department under section 6 of this chapter,
IC 22-4-11-2, IC 22-4-11-3.5, and IC 22-4-11.5.
SECTION 9. IC 22-4-11-0.1, AS ADDED BY P.L.220-2011,
SECTION 364, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 0.1. The amendments made to
section 1 of this chapter by P.L.172-1991 apply to individuals who file
a disaster unemployment assistance claim or a state unemployment
insurance claim after June 1, 1990, and before June 2, 1991, or during
a period to be determined by the general assembly.
SECTION 10. IC 22-4-11-2, AS AMENDED BY P.L.200-2025,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 2. (a) Except as provided in IC 22-4-10-6 and
IC 22-4-11.5, the department shall for each year determine the
contribution rate applicable to each employer.
(b) The balance shall include contributions with respect to the
period ending on the computation date and actually paid on or before
July 31 immediately following the computation date and benefits
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actually paid on or before the computation date and shall also include
any voluntary payments made in accordance with IC 22-4-10-5 or
IC 22-4-10-5.5 (repealed):
(1) for each calendar year, an employer's rate shall be determined
in accordance with the rate schedules in section 3.3 or 3.5 of this
chapter; and
(2) for each calendar year, an employer's rate shall be two and
five-tenths percent (2.5%), except as otherwise provided in
subsection (g) or IC 22-4-37-3, unless:
(A) the employer has been subject to this article throughout
the thirty-six (36) consecutive calendar months immediately
preceding the computation date; and
(B) there has been some annual payroll in each of the three (3)
twelve (12) month periods immediately preceding the
computation date. and
(C) the employer has properly filed all required contribution
and wage reports, and all contributions, penalties, and interest
due and owing by the employer or the employer's predecessors
have been paid.
(c) In addition to the conditions and requirements set forth and
provided in subsection (b)(2)(A) and (b)(2)(B), and (b)(2)(C), an
employer's rate is equal to the sum of the employer's contribution rate
determined or estimated by the department under this article plus two
percent (2%) unless all required contributions and wage reports have
been filed within thirty-one (31) days following the computation date
and all contributions, penalties, and interest due and owing by the
employer or the employer's predecessor for periods before and
including the computation date have been paid:
(1) within thirty-one (31) days following the computation date; or
(2) within ten (10) days after the department has given the
employer a written notice by mail of:
(A) the delinquency; or
(B) failure to file the reports;
whichever is the later date. The department or the department's
designee may waive the imposition of rates under this subsection if the
department finds the employer's failure to meet the deadlines was for
excusable cause. The department shall give written notice to the
employer before this additional condition or requirement shall apply.
An employer's rate under this subsection may not exceed twelve
percent (12%).
(d) However, if the employer is the state or a political subdivision
of the state or any instrumentality of a state or a political subdivision,
SEA 162 — Concur
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or any instrumentality which is wholly owned by the state and one (1)
or more other states or political subdivisions, the employer may
contribute at a rate of one and six-tenths percent (1.6%) until it has
been subject to this article throughout the thirty-six (36) consecutive
calendar months immediately preceding the computation date.
(e) On the computation date every employer who had taxable wages
in the previous calendar year shall have the employer's experience
account charged with the amount determined under the following
formula:
STEP ONE: Divide:
(A) the employer's taxable wages for the preceding calendar
year; by
(B) the total taxable wages for the preceding calendar year.
STEP TWO: Subtract:
(A) the amount described in IC 22-4-10-4.5(e)(2), if any; from
(B) the total amount of benefits charged to the fund under
section 1 of this chapter.
STEP THREE: Multiply the quotient determined under STEP
ONE by the difference determined under STEP TWO.
(f) One (1) percentage point of the rate imposed under subsection
(c), or the amount of the employer's payment that is attributable to the
increase in the contribution rate, whichever is less, shall be imposed as
a penalty that is due and shall be deposited upon collection into the
special employment and training services fund established under
IC 22-4-25-1. The remainder of the contributions paid by an employer
pursuant to the maximum rate shall be:
(1) considered a contribution for the purposes of this article; and
(2) deposited in the unemployment insurance benefit fund
established under IC 22-4-26.
(g) Except as otherwise provided in IC 22-4-37-3, this subsection,
instead of subsection (b)(2), applies to an employer in the construction
industry. As used in the subsection, "construction industry" means
business establishments whose proper primary classification in the
current edition of the North American Industry Classification System
Manual - United States, published by the National Technical
Information Service of the United States Department of Commerce is
23 (construction). For each calendar year beginning after December 31,
2013, an employer's rate shall be equal to the lesser of four percent
(4%) or the average of the contribution rates paid by all employers in
the construction industry subject to this article during the twelve (12)
months preceding the computation date, unless:
(1) the employer has been subject to this article throughout the
SEA 162 — Concur
15
thirty-six (36) consecutive calendar months immediately
preceding the computation date;
(2) there has been some annual payroll in each of the three (3)
twelve (12) month periods immediately preceding the
computation date; and
(3) the employer has properly filed all required contribution and
wage reports, and all contributions, penalties, and interest due and
owing by the employer or the employer's predecessors have been
paid.
(h) The department shall satisfy the notice requirement in
subsection (c) by sending:
(1) physical mail to the employer's last known address; or
(2) electronic mail to an electronic mail address provided to the
department by the employer or a representative of the employer.
However, if electronic mail is used and the department does not receive
a receipt or electronic confirmation within five (5) days of
transmission, the notice is insufficient and notice must be sent by
physical mail as soon as practicable.
SECTION 11. IC 22-4-12-0.1, AS ADDED BY P.L.220-2011,
SECTION 365, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 0.1. The amendments made to
section 4 of this chapter by P.L.172-1991 apply to individuals who file
a disaster unemployment assistance claim or a state unemployment
insurance claim after June 1, 1990, and before June 2, 1991, or during
a period to be determined by the general assembly.
SECTION 12. IC 22-4-12-1, AS AMENDED BY P.L.108-2006,
SECTION 22, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 1. (a) Benefits designated as unemployment
insurance benefits shall become payable from the fund to any
individual claimant who is or becomes unemployed and eligible for
benefits under the terms of this article.
(b) All benefits shall be paid through the department or such other
agencies as the department by rule may designate at such times and in
such manner as the department may prescribe.
(c) Except as provided in subsection (d), the department may
make direct deposit disbursements with respect to the payment of
benefits to a financial institution account designated by an
individual only if the financial institution:
(1) has a physical branch location in Indiana; or
(2) is designated as an approved depository by the treasurer
of state.
(d) The department may approve a financial institution that
SEA 162 — Concur
16
does not qualify under subsection (c)(1) or (c)(2) if the financial
institution is in compliance with IC 22-4-17-7, IC 22-4-17-8, and
IC 22-4-19.
(e) The department may adopt rules to provide for the payment of
benefits due and payable on executed vouchers to persons since
deceased; benefits so due and payable may be paid to the legal
representative, dependents, or next of kin of the deceased as are found
to be entitled thereto, which rules need not conform with the laws of
the state governing decedent estates, and every such payment shall be
deemed a valid payment to the same extent as if made to the legal
representative of the deceased.
(f) If there is an executor or administrator of the estate of the
decedent, payments must be made to the executor or
administrator. If it is shown to the satisfaction of the department
that there is no executor, and no administrator has been appointed,
and in all probability no administrator will be appointed, payment
may be made to the next of kin, with due regard being given to the
following order of preference:
(1) The surviving spouse.
(2) Children.
(3) Parents.
(4) Brothers and sisters.
(5) Other relatives.
However, the department is not bound to follow this order of
preference.
(g) Whenever there is more than one (1) legal heir in any of the
classes established in subsection (f), payment may be made to any
one (1) of that group as agent for the others upon submission of
proper evidence of authority and identification.
(h) Application for payment of benefits must be made in writing
and on the prescribed form within six (6) months after the death of
the deceased, provided that the department, upon good cause, may
extend the time for filing.
(i) In cases where the claimant's benefit eligibility, or
disqualification, is disputed, the department shall promptly notify
the claimant and the employer, or employers, directly involved
with the issue or issues raised, and the determination will set forth
the right to appeal of the party receiving the adverse
determination. In the event of the death of the claimant between
the:
(1) filing of a valid claim for benefits; and
(2) issuance of an eligibility determination by the department;
SEA 162 — Concur
17
all notices filed or issued under this section shall be served upon the
authorized representative of the deceased claimant, as determined
under subsection (f).
(j) In the event a hearing is scheduled in an appeal involving a
deceased claimant, the claimant's authorized representative of the
estate shall be allowed to participate in the hearing in place of the
claimant, and the appeal shall proceed as set forth under this
section.
SECTION 13. IC 22-4-12-2, AS AMENDED BY P.L.2-2011,
SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 2. (a) With respect to initial claims filed for any
week beginning on and after July 1, 1997, and before July 1, 2012,
each eligible individual who is totally unemployed (as defined in
IC 22-4-3-1) in any week in the individual's benefit period shall be paid
for the week, if properly claimed, benefits at the rate of:
(1) five percent (5%) of the first two thousand dollars ($2,000) of
the individual's wage credits in the calendar quarter during the
individual's base period in which the wage credits were highest;
and
(2) four percent (4%) of the individual's remaining wage credits
in the calendar quarter during the individual's base period in
which the wage credits were highest.
(b) (a) With respect to initial claims filed for any week beginning on
and after July 1, 2012, Each eligible individual claimant who is totally
unemployed (as defined in IC 22-4-3-1) in any week in the individual's
claimant's benefit period shall be paid for the week, if properly
claimed, an amount equal to forty-seven percent (47%) of the
individual's claimant's prior average weekly wage, rounded (if not
already a multiple of one dollar ($1)) to the next lower dollar.
However, the maximum weekly benefit amount may not exceed three
hundred ninety dollars ($390).
(c) (b) For purposes of this section, "prior average weekly wage"
means the result of:
(1) the individual's claimant's total wage credits during the
individual's claimant's base period; divided by
(2) fifty-two (52).
(c) In cases where a claimant is paid the statutory minimum
weekly benefit amount established under this section, although the
claimant's actual weekly benefit amount computes to less than the
statutory minimum, the additional benefits paid shall not increase
the claimant's maximum benefit amount.
(d) If the claimant is partially unemployed, the amount of
SEA 162 — Concur
18
benefits computed and paid to the claimant will be the difference
between the statutory minimum and the claimant's deductible
income for a particular week.
(e) In cases where a claimant's actual computed weekly benefit
amount is less than the statutory minimum, and a penalty
suspension has been imposed under IC 22-4-15-1 or IC 22-4-15-2,
the statutory weekly benefit amount, relating to the lifting of the
suspension, refers to the claimant's actual computed weekly benefit
amount, not to the statutory minimum.
SECTION 14. IC 22-4-12-4, AS AMENDED BY P.L.200-2025,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 4. (a) Benefits shall be computed upon the basis
of wage credits of an individual in the individual's base period. Wage
credits shall be reported by the employer and credited to the individual
in the manner prescribed by the department. With respect to initial
claims filed for any week beginning on and after July 7, 1991, the
maximum total amount of benefits payable to any eligible individual
during any benefit period shall not exceed twenty-six (26) times the
individual's weekly benefit, or twenty-eight percent (28%) of the
individual's wage credits with respect to the individual's base period,
whichever is less. If such maximum total amount of benefits is not a
multiple of one dollar ($1), it shall be computed to the next lower
multiple of one dollar ($1).
(b) Except as provided in subsection (d), the total extended benefit
amount payable to any eligible individual with respect to the
individual's applicable benefit period shall be fifty percent (50%) of the
total amount of regular benefits (including dependents' allowances)
which were payable to the individual under this article in the applicable
benefit year, or thirteen (13) times the weekly benefit amount
(including dependents' allowances) which was payable to the individual
under this article for a week of total unemployment in the applicable
benefit year, whichever is the lesser amount.
(c) This subsection applies to individuals who file a disaster
unemployment assistance claim. or a state unemployment insurance
claim after June 1, 1990, and before June 2, 1991, or during another
time specified in another state statute. An individual is entitled to may
be eligible for thirteen (13) weeks of additional benefits as originally
determined, if:
(1) the individual has established:
(A) a disaster unemployment assistance claim under the
Stafford Disaster Relief and Emergency Assistance Act; or
(B) a state unemployment insurance claim as a direct result of
SEA 162 — Concur
19
a major disaster;
(2) all regular benefits and all disaster unemployment assistance
benefits:
(A) have been exhausted by the individual; or
(B) are no longer payable to the individual due to the
expiration of the disaster assistance period; and
(3) the individual remains unemployed as a direct result of the
disaster.
(d) For purposes of this subsection, "high unemployment period"
means a period during which an extended benefit period would be in
effect if IC 22-4-14-6.9(d)(1) were applied by substituting "eight
percent (8%)" for "six and five-tenths percent (6.5%)". Effective with
respect to weeks beginning in a high unemployment period, the total
extended benefit amount payable to an eligible individual with respect
to the applicable benefit year is equal to the least of the following
amounts:
(1) Eighty percent (80%) of the total amount of regular benefits
that were payable to the eligible individual under this article in
the applicable benefit year.
(2) Twenty (20) times the weekly benefit amount that was payable
to the eligible individual under this article for a week of total
unemployment in the applicable benefit year.
(3) Forty-six (46) times the weekly benefit amount that was
payable to the eligible individual under this article for a week of
total unemployment in the applicable benefit year, reduced by the
regular unemployment compensation benefits paid (or deemed
paid) during the benefit year.
This subsection expires on the later of December 5, 2009, or the week
ending four (4) weeks before the last week for which federal sharing is
authorized by Section 2005(a) of Division B, Title II (the federal
Assistance to Unemployed Workers and Struggling Families Act) of
the federal American Recovery and Reinvestment Act of 2009 (P.L.
111-5).
(e) For purposes of this subsection, "high unemployment period"
means a period during which an extended benefit period would be in
effect if IC 22-4-14-6.9(h)(1) were applied by substituting "eight
percent (8%)" for "six and one-half percent (6.5%)". Effective with
respect to weeks of unemployment beginning after March 1, 2011, and
ending on the later of December 10, 2011, or the week ending four (4)
weeks before the last week for which federal sharing is authorized by
Section 2005(a) of Division B, Title II (the federal Assistance to
Unemployed and Struggling Families Act) of the federal American
SEA 162 — Concur
20
Recovery and Reinvestment Act of 2009 (P.L. 111-5), in a high
unemployment period, the total extended benefit amount payable to an
eligible individual with respect to the applicable benefit year is equal
to the lesser of the following amounts:
(1) Eighty percent (80%) of the total amount of regular benefits
that were payable to the eligible individual under this article in
the applicable benefit year.
(2) Twenty (20) times the weekly benefit amount that was payable
to the eligible individual under this article for a week of total
unemployment in the applicable benefit year.
SECTION 15. IC 22-4-14-1, AS AMENDED BY P.L.2-2011,
SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 1. (a) Except as provided in IC 22-4-5-1 or
subsection (b), or (c), an unemployed individual shall be eligible to
receive benefits with respect to any week only if the individual has
made a claim for benefits in accordance with IC 22-4-17.
(b) A person who:
(1) accepts a layoff under an inverse seniority clause of a validly
negotiated contract; and
(2) otherwise meets the eligibility requirements established by
this article;
is entitled to receive benefits in the same amounts, under the same
terms, and subject to the same conditions as any other unemployed
person.
(c) This subsection applies to initial claims for unemployment filed
for a week that begins after March 14, 2008, and before October 1,
2011. This subsection does not apply to a person who elects to retire in
connection with a layoff or plant closure and receive pension,
retirement, or annuity payments. Except as provided in IC 22-4-5-1, a
person who:
(1) accepts an offer of payment or other compensation offered by
an employer to avert or lessen the effect of a layoff or plant
closure; and
(2) otherwise meets the eligibility requirements established by
this article;
is entitled to receive benefits in the same amounts, under the same
terms, and subject to the same conditions as any other unemployed
person.
SECTION 16. IC 22-4-14-5, AS AMENDED BY P.L.183-2015,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 5. (a) As further conditions precedent to the
payment of benefits to an individual with respect to benefit periods
SEA 162 — Concur
21
established on and after July 1, 1995, but before January 1, 2010:
(1) the individual must have established, after the last day of the
individual's last base period, if any, wage credits (as defined in
IC 22-4-4-3 and within the meaning of IC 22-4-22-3) equal to at
least one and one-quarter (1.25) times the wages paid to the
individual in the calendar quarter in which the individual's wages
were highest; and
(2) the individual must have established wage credits in the last
two (2) calendar quarters of the individual's base period in a total
amount of not less than one thousand six hundred fifty dollars
($1,650) and an aggregate in the four (4) calendar quarters of the
individual's base period of not less than two thousand seven
hundred fifty dollars ($2,750).
(b) As a further condition precedent to the payment of benefits to an
individual with respect to a benefit year established on and after July
1, 1995, An insured worker may not receive benefits in a benefit year
unless:
(1) after the beginning of the immediately preceding benefit year
during which the individual received benefits, the individual:
(1) (A) performed insured work;
(2) (B) earned remuneration in employment in at least each of
eight (8) weeks; and
(3) (C) earned remuneration equal to or exceeding the product
of the individual's weekly benefit amount multiplied by eight
(8);
(c) As further conditions precedent to the payment of benefits to an
individual with respect to benefit periods established on and after
January 1, 2010:
(1) (2) the individual must have has established, after the last day
of the individual's last base period, if any, wage credits (as
defined in IC 22-4-4-3 and within the meaning of wages under
IC 22-4-22-3) equal to at least one and five-tenths (1.5) times the
wages paid to the individual in the calendar quarter in which the
individual's wages were highest; and
(2) (3) the individual must have has established wage credits in
the last two (2) calendar quarters of the individual's base period
in a total amount of not less than two thousand five hundred
dollars ($2,500) and a total amount in the four (4) calendar
quarters of the individual's base period of not less than four
thousand two hundred dollars ($4,200).
SECTION 17. IC 22-4-17-2, AS AMENDED BY P.L.200-2025,
SECTION 22, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
SEA 162 — Concur
22
JULY 1, 2026]: Sec. 2. (a) When an individual a claimant files an
initial claim, the department shall promptly make a determination of
the individual's claimant's status as an insured worker. A notice of the
determination of insured status shall be furnished to the individual
claimant promptly. Each determination shall be based on and include
a statement showing the amount of wages paid to the individual
claimant for insured work by each employer during the individual's
claimant's base period and shall include a finding as to whether the
wages meet the requirements for the individual claimant to be an
insured worker, and, if so, the week ending date of the first week of the
individual's claimant's benefit period, the individual's claimant's
weekly benefit amount, and the maximum amount of benefits that may
be paid to the individual claimant for weeks of unemployment in the
individual's claimant's benefit period. For the individual claimant who
is not insured, the notice shall include the reason for the determination.
The following apply in regard to the determination:
(1) Unless the individual, claimant, within fifteen (15) days after
the determination was sent by the department to the individual,
claimant, asks for a hearing before an administrative law judge,
the determination shall be final and benefits shall be paid or
denied in accordance with the determination. The date listed
under date sent on the determination of eligibility is prima facie
evidence that the determination was sent to the party on that date.
(2) If an individual a claimant asks for a wage investigation, the
unemployment insurance tax division shall promptly perform an
investigation to determine whether wages from insured work
should be added or subtracted from the claim. A determination of
the wage investigation shall be furnished to the individual
claimant promptly upon completion. Unless the individual,
claimant, within fifteen (15) days after the determination was
sent by the unemployment insurance tax division, requests an
appeal to a liability administrative law judge under IC 22-4-32-1,
the determination shall be final.
(b) The department shall promptly furnish the claimant's last
employer prior to filing of a claim and each employer in the base
period whose experience or reimbursable account is potentially
chargeable with benefits to be paid to the individual claimant with a
notice of the employer's benefit liability. The notice shall contain the
date, the name and Social Security account number of the individual,
claimant, the ending date of the individual's claimant's base period,
and the week ending date of the first week of the individual's
claimant's benefit period. The notice shall further contain information
SEA 162 — Concur
23
as to the proportion of benefits chargeable to the employer's experience
or reimbursable account in ratio to the earnings of the individual
claimant from the employer. Unless the employer within fifteen (15)
days after the notice of benefit liability was sent by the department to
the employer, asks for a hearing before a liability administrative law
judge, the determination shall be final and benefits paid shall be
charged in accordance with the determination.
(c) An employing unit, including an employer, having knowledge
of any facts which may affect an individual's a claimant's eligibility or
right to waiting period credits or benefits, shall notify the department
in the form and manner prescribed by the department of those facts
within ten (10) days after the claim for benefits was sent by the
department.
(d) If the claimant has been separated for any of the following
reasons, the employer shall notify the department of the separation
circumstances in the form and manner prescribed by the
department:
(1) Voluntarily left the employment without good cause in
connection with the work.
(2) Was discharged for just cause.
(3) Was discharged for gross misconduct in connection with
the claimant's work.
(4) Left due to the claimant's physical condition.
(5) Left to accept other employment.
(6) Left to enter self-employment.
(e) An employer shall notify the department when the following
circumstances exist with regard to a separated claimant in the
form and manner prescribed by the department:
(1) The claimant is entitled to:
(A) vacation pay;
(B) payment in lieu of vacation;
(C) standby pay; or
(D) wages in lieu of notice.
(2) The claimant is receiving, or will receive, retirement pay.
(3) There are other circumstances, of which the employer is
aware, that are potentially disqualifying for claimant benefits.
(d) (f) In addition to the foregoing determination of insured status
by the department, the deputy shall, throughout the benefit period,
determine the claimant's eligibility with respect to each week for which
the claimant claims waiting period credit or benefit rights, the validity
of the claimant's claim, and the cause for which the claimant left the
claimant's work, or may refer the claim to an administrative law judge
SEA 162 — Concur
24
who shall make the initial determination in accordance with the
procedure in section 3 of this chapter.
(e) (g) In cases where the claimant's benefit eligibility or
disqualification is disputed, the department shall promptly notify the
claimant and the employer or employers directly involved or connected
with the issue raised as to the validity of the claim, the eligibility of the
claimant for waiting period credit or benefits, or the imposition of a
disqualification period or penalty, or the denial of the claim, and of the
cause for which the claimant left the claimant's work, of the
determination and the reasons for the determination.
(f) (h) Except as otherwise provided in this section regarding parties
located in Alaska, Hawaii, and Puerto Rico, unless the claimant or the
employer, within fifteen (15) days after the notification required by
subsection (e), (g), was sent by the department to the claimant or the
employer, asks for a hearing before an administrative law judge, the
decision shall be final and benefits shall be paid or denied in
accordance with the decision.
(g) (i) For a notice of disputed administrative determination or
decision sent by the department to the claimant or employer either of
whom is located in Alaska, Hawaii, or Puerto Rico, unless the claimant
or employer, within fifteen (15) days after the notification required by
subsection (e) (g) was sent to the claimant or employer, asks for a
hearing before an administrative law judge, the decision shall be final
and benefits shall be paid or denied in accordance with the decision.
(h) (j) If a claimant or an employer requests a hearing under
subsection (f) or (g), (h) or (i), the request shall be filed with the
department within the prescribed periods provided in this section and
shall be in the form and manner prescribed by the department. The
party requesting the hearing shall include with its request a copy
of the determination being appealed or the identification number
of the determination being appealed. In the event a hearing is
requested by an employer or the department after it has been
administratively determined that benefits should be allowed to a
claimant, entitled benefits shall continue to be paid to the claimant
unless the administrative determination has been reversed by a due
process hearing. Benefits with respect to any week not in dispute shall
be paid promptly regardless of any appeal.
(i) (k) A person may not participate on behalf of the department in
any case in which the person is an interested party.
(j) (l) Solely on the ground of obvious administrative error
appearing on the face of an original determination, and within the
benefit year of the affected claims, the commissioner, or a
SEA 162 — Concur
25
representative authorized by the commissioner to act in the
commissioner's behalf, may reconsider and direct the deputy to revise
the original determination so as to correct the obvious error. Time for
filing an appeal and requesting a hearing before an administrative law
judge regarding the determinations handed down pursuant to this
subsection shall begin on the date following the date of revision of the
original determination and shall be filed with the commissioner in the
form and manner prescribed by the department within the prescribed
periods provided in subsection (c).
(k) (m) Notice to the employer and the claimant that the
determination of the department is final if a hearing is not requested
shall be prominently displayed on the notice of the determination
which is sent to the employer and the claimant.
(l) (n) If an allegation of the applicability of IC 22-4-15-1(c)(8) is
made by the individual claimant at the time of the claim for benefits,
the department shall not notify the employer of the claimant's current
address or physical location.
(m) (o) All individuals claimants who have not previously verified
their identity with the department shall, prior to filing a new claim for
unemployment benefits, verify their identity in the form and manner
prescribed by the department.
(p) No claimant will be eligible for a monetary determination of
benefits without first providing the department with the claimant's
Social Security number.
(n) (q) An individual A claimant is ineligible for unemployment
benefits or extended benefits unless the individual claimant has
verified the individual's claimant's identity in the form and manner
prescribed by the department.
(r) Once a valid claim has been filed by a claimant, during the
benefit period established the claimant cannot cancel, withdraw, or
change the time of filing of:
(1) the initial claim;
(2) a reopened claim; or
(3) an additional claim;
for any purpose, other than administrative error on the part of
department staff or to backdate a combined wage claim to the
effective date of a combined wage claim originally filed in another
state.
(s) The date listed under date sent on a determination of
eligibility issued under this section is prima facie evidence that the
determination was sent to the party on that date.
SEA 162 — Concur
President of the Senate
President Pro Tempore
Speaker of the House of Representatives
Governor of the State of Indiana
Date: Time:
SEA 162 — ConcurEvery fact on this page links to its source, starting with the official bill record.