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In Indiana, several notable laws were passed in 2025 that impact employers. Below is a summary of these significant pieces of legislation.
House Bill 1125: The Earned Wage Access Act ("EWAA") (effective January 1, 2026)
On May 6, 2025, Governor Mike Braun signed the EWAA, which creates a regulatory framework for earned wage access services, and allows employees to access the wages they have already earned before their standard payday. Its requirements include licensure of Earned Wage Access ("EWA") providers, transparent fee disclosures, prohibition of late fees and interest, and provision of at least one free access option.
Third-party providers that provide EWA services must be licensed with the Indiana Department of Financial Institutions beginning on January 1, 2026. The fee disclosures are limited to $5 or 5% of wages. The EWAA defines EWA as one of the following: (1) consumer directed wage access services (meaning that a provider would deliver access to employees their earned but unpaid income based on the employee's representation of income as well as the provider's reasonable determination of the employee's earned but unpaid income); or (2) employer integrated wage access services (meaning that a provider would deliver access to employees of their earned but unpaid income based on information and data obtained directly from the employer). There are several statutory exceptions to the EWAA, including but not limited to small loans and payroll processing services.
Senate Bill 5: Consumer Data Protection Act (INCDPA) (effective January 1, 2026)
The INCDPA was passed in 2023 and will finally go into effect on January 1, 2026. Although it is not directly a labor- and employment-related law, it is a comprehensive data privacy law that grants consumers certain data-related rights, such as the abilities to access, delete, correct, and opt out of data sales and targeted advertising. It also requires businesses to provide privacy notices, protect consumer data, and respect certain choices of consumers.
The law applies to businesses that control or process personal data of at least 100,000 Indiana residents annually, or 25,000 residents so long as more than 50% of the business's revenue comes from data sales. Employers will need to update policies, privacy notices, and data handling procedures if they qualify under the law. The law also contains some exceptions, such as, for example, data covered under federal privacy laws (such as HIPAA).
Senate Bill 409: Employee Absence for Certain Meetings (effective July 1, 2025)
This new law permits employees to take unpaid time off to attend certain school meetings for their children. Specifically, employees may now take one unpaid day of leave annually. This law covers all employers in the state and encompasses meetings related to areas such as attendance issues and any Individualized Education Program. A parent interested in utilizing the time off provided under this law is required to provide his or her employer five days' notice prior to the meeting and may have to provide documentation of proof of the meeting under certain circumstances. The employer may impose reasonable limitations on the leave. The law is set to expire in four years unless it is extended by the legislature in the future.
Senate Bill 475: Physician Noncompete Agreements (effective July 1, 2025)
Under this law, hospitals and similarly situated entities cannot impose non-competition agreements on physicians who worked for them after July 1, 2025. Some key restrictions that are no longer permitted include prohibitions on starting a new employment opportunity with a different employer, the imposition of financial fines or penalties for a physician's practice of medicine, requiring former employer consent prior to the beginning of new employment. The law does not prohibit nondisclosure agreements and limited non-solicitation agreements. Notably, non-competition agreements entered into before July 1, 2025 are not affected.
Youth Employment
Teen working hours and requirements were updated in 2025. Some examples include:
- Teenagers aged 16 and 17 may work the same hours as adults
without parental permission.
- Teenagers aged 14 and 15 have adjusted hours limitations for summer work, including slightly expanded hours.
- Employers with five or more minors working for them must register with the Youth Employment System and follow reporting requirements.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
