Indiana Leave Laws




Vacation Leave

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.

An employer may lawfully establish a policy or enter into a contract denying employees payment for accrued vacation leave upon separation from employment. See Indiana Heart Associates, P.C. v. Bahamonde, 714 N.E.2d 309 (Ind. App. 1999); Die &Mold, Inc. v. Western, 448 N.E.2d 44 (Ind. App. 1983).



An employer may also lawfully establish a policy or enter into a contract disqualifying employees from payment of accrued vacation upon separation from employment if they fail to comply with specific requirements, such as giving two weeks notice or being employed as of a specific date of the year. See Williams v. Riverside, 846 N.E.2d 738 (Ind. App. 2006); Damon Corp. v. Estes, 750 N.E.2d 891 (Ind. App. 2001); Indiana Heart Associates, P.C. v. Bahamonde, 714 N.E.2d 309 (Ind. App. 1999).

An employer is required to pay accrued vacation to an employee upon separation from employment if its policy or contract requires it. See Indiana Heart Associates, P.C. v. Bahamonde, 714 N.E.2d 309 (Ind. App. 1999); Die &Mold, Inc. v. Western, 448 N.E.2d 44 (Ind. App. 1983).

An employer is required to pay accrued vacation leave upon separation from employment if the employer’s established policy or employment contract is silent on the matter. See Haxton v. McClure Oil Corp., 697 N.E.2d 1277 (Ind. App. 1998).

An employer may cap the amount of vacation leave an employee may accrue over time. See Indiana Heart Associates, P.C. v. Bahamonde, 714 N.E.2d 309 (Ind. App. 1999); Die &Mold, Inc. v. Western, 448 N.E.2d 44 (Ind. App. 1983).

Neither Indiana’s Legislature nor its courts have stated whether an employer can lawfully implement a “use-it-or-lose-it” vacation policy requiring employees to use their vacation leave by a specific date or lose it. However, based on the State’s strong policy favoring freedom of contract, it is likely such a policy would be lawful so long as employees were made aware of the policy prior to it being enforced and so long as employees had reasonable opportunities to use the leave prior to losing it. See Naugle v. Beech Grove City Schools, 864 N.E.2d 1058 (Ind. Sup. Ct. 2007).



Sick Leave

Indiana law does not require employers to provide employees with sick leave benefits, either paid or unpaid. If an employer chooses to provide sick leave, it must give employees written notice of the terms of the policy. An employer in Indiana may be required to provide an employee unpaid sick leave in accordance with the Family and Medical Leave Act or other federal laws.



Holiday Leave

Indiana law does not require private employers to provide employees with either paid or unpaid holiday leave. IN Dept. of Labor FAQs. In Indiana, a private employer can require an employee to work holidays. A private employer does not have to pay an employee premium pay, such as 1½ times the regular rate, for working on holidays, unless such time worked qualifies the employee for overtime under standard overtime laws. If an employer chooses to provide either paid or unpaid holiday leave, it must comply with the terms of its established policy or employment contract.

State holidays

Visit our Indiana State Holidays page for a list of holidays recognized and observed by the state of Indiana as well as information regarding state laws governing holiday leave for public employers and employees.



Jury Duty Leave

Indiana does not require employers to pay an employee for responding to a jury summons or serving on a jury.

An employer may not subject an employee to an adverse employment action (e.g., termination, demotion, discipline) for responding to a jury summons or serving on a jury.

An employer may not subject an employee to an adverse employment action (e.g., termination, demotion, discipline) for responding to a jury summons or serving on a jury if they employee provides notice to the employer of the jury service within a reasonable period either after receiving the summons or before the service is to begin.

If an employer with 10 or fewer employees has an employee summoned for jury service while another employee is already performing jury service, the employer may request, through either employer, that the summoned employee’s jury service be postponed until the employee currently performing jury service completes his or her service.

Indiana Code 33-28-5-24.3



Voting Leave

Indiana does not have a law which requires an employer to grant its employees leave, either paid or unpaid, to vote.



Bereavement Leave

Indiana law does not require employers to provide employees bereavement leave or leave to attend funerals. Bereavement leave is leave that is taken by an employee due to the death of another individual, usually a close relative. Employers may choose to provide bereavement leave and may be required to comply with any bereavement policy or practice they maintain.