10 Key Questions about Leave in Indiana

April 18th 2025

Understanding leave laws in Indiana involves navigating a mix of federal protections and employer-specific policies. From medical absences to military service and personal time off, it’s important for both employees and employers in Indiana to grasp how to handle different types of leave properly. 

This article answers 10 of the most important questions about employee leave in Indiana and how to stay compliant with Indiana labor laws.

This Guide Covers:

1. What are Indiana leave laws?

Leave laws in Indiana allow employees to take approved time away from work, either paid or unpaid. Reasons can include medical needs, civic duties, family care, or personal matters. The State of Indiana’s personnel policy outlines many types of leaves, including New Parent Leave, Sick Leave, Military Leave, and more. These may be granted automatically under law or require formal request and documentation.

2. How does leave work in Indiana?

Leave in Indiana is governed by a combination of federal regulations, state statutes, and agency-level policies set by the Indiana State Personnel Department (INSPD). These policies apply primarily to state employees.

Eligibility for state employees varies based on length of employment, full-time or part-time status, or type and purpose of the leave. 

Some types of leave—like military—are paid. While others like the Family and Medical Leave Act (FMLA) or uniformed services leave are unpaid unless paired with accrued paid time off. 

Employees are encouraged to give advance notice when possible, especially for planned absences such as parental leave, or planned travel. 

Planned absences should be communicated early. Emergency leaves require prompt notice and coordination with supervisors.   

Moreover, Indiana offers both mandatory and discretionary leave options, which are managed through the state’s human capital management system PeopleSoft. 

3. What are the types of leave available to Indiana employees?

In Indiana, state employees may be entitled to a range of leave types depending on their type of employment, job classification, and length of service. Leave in Indiana includes both legally required and employer-provided options.

  • Family and Medical Leave: Under the federal Family and Medical Leave Act (FMLA), eligible employees in Indiana can take up to 12 weeks of unpaid, job-protected leave each year. This leave covers situations like caring for a newborn or newly adopted child, recovering from a serious health condition, or supporting an immediate family member with a qualifying medical issue. To qualify, employees must have worked for their employer for at least 12 months and logged at least 1,250 hours in the past year.
  • Military Family Leave: State employees who are the spouse, parent, child, grandparent, or sibling of a military service member may take up to ten days of unpaid leave during their service. This leave can be used within 30 days before the service member is called to active duty, during their leave, or within 30 days after their service ends. To qualify, the employee must have worked for the same employer for at least 12 months and completed at least 1,500 hours of work in the past year. 
  • Jury Duty Leave: State employees who are lawfully required to report for jury duty are entitled to paid leave during their service. While serving, employees continue to receive their regular salary—but must report any jury duty compensation (excluding mileage reimbursements) to their employer. The employer deducts this amount from the employee’s regular wages, ensuring the total received equals the employee’s normal pay.
  • Military Leave (Public Employees): State employees who are members of the National Guard or reserves may take up to 15 days of paid military leave annually. Additional unpaid leave may be granted under the federal law USERRA.
  • Sick Leave (Public Employees): Full-time Indiana state employees earn 7.5 hours of sick leave every two months, plus an additional 7.5 hours every four months. Part-time employees working at least 50% of a full-time schedule earn 3.75 hours every two months, plus 3.75 hours every four months. Sick leave can be used for the employee’s own illness or to care for an immediate family member.
  • New Parent Leave (Public Employees): After six months of service, full-time state employees receive 150 hours of paid leave for the birth or adoption of a child and part-time employees receive 75 hours. Leave must be used within six months of the birth.
  • Organ and Bone Marrow Donor Leave (Public Employees): Employees donating bone marrow receive up to 5 days of paid leave; organ donors receive up to 30 days. These run concurrently with FMLA, if applicable.
  • Volunteer Firefighter Leave: Employees who serve as volunteer firefighters are protected from disciplinary action when responding to emergencies, provided they notify their employer in advance and supply documentation. Leave is unpaid unless accrued time is used.
  • Vacation Leave: State employees accrue up to 90 hours annually, with additional hours after five years of service. Accrued vacation may be paid out upon separation under specific conditions.
  • Personal Leave (Public Employees): State employees can accrue up to 22.5 hours of personal leave. If the balance exceeds this cap, any additional hours are automatically transferred to the employee’s sick leave balance.
  • Holiday Leave: Full-time state employees receive paid leave for official holidays such as New Year’s Day, Memorial Day, Thanksgiving, and Christmas. If required to work, they earn extra pay or compensatory time. Part-time staff get prorated holiday pay.
  • Community Service Leave (Public Employees): State employees may take up to 15 hours of paid leave per year to participate in approved volunteer work. Prior approval and documentation are required.
  • Short and Long-Term Disability Leave (Public Employees): After six months of full-time service, employees may qualify for Short-Term Disability (STD) Leave. To receive benefits, employees must submit an application and medical certification within 30 days of the disability start date. The application pays 60% of base biweekly wages after a 30-day waiting period, for up to six months. If the disability continues beyond that, employees may transition into Long-Term Disability (LTD), receiving 50% pay for the first two years and 40% in years three and four. The Partial Disability Job (PDJ) Program and other supplemental benefits may also apply based on medical and employment status.
  • Worker’s Compensation Leave: In Indiana, workers’ compensation covers job-related injuries from day one, offering medical care, wage replacement, and death benefits. Claims must be reported promptly and disputes may require legal or board intervention.

Read more about Indiana leave laws.

4. How long can you take a leave of absence in Indiana?

The duration of absence in Indiana depends on the type of leave:

  • Eligible employees can take up to 12 weeks of unpaid, job-protected leave under FMLA in a 12-month period.
  • Leave without pay can last up to 30 days without extra approval.
  • For absences over 30 days, agency and INSPD approval is required—if the employee remains off payroll for six pay periods, health insurance may transition to COBRA.
  • Military leave provides up to 15 paid days per year.
  • Uniformed services leave is unpaid and lasts as long as required under federal USERRA.
  • Short- and long-term disability begins after 30 days of incapacity and continues based on claim approval, with no set maximum.

Furthermore, unauthorized leave may lead to disciplinary action, including warnings, suspension, or termination, and may reset your eligibility for state benefits like disability.

5. Is leave in Indiana paid or unpaid?

Leave in Indiana can be either paid or unpaid, depending on the type and the employee’s status. Paid leave includes vacation, sick, and personal time for eligible employees, as well as jury duty (for state employees) and military leave of up to 15 days. 

Unpaid leave covers federally protected leave such as FMLA, as well as extended or unauthorized absences and uniformed services leave.

During unpaid leave, employees don’t receive a paycheck—so benefit premiums (the employee’s share of health insurance or other coverage) are not automatically deducted. These missed payments may be deducted from future wages or billed directly to the employee to keep coverage active.

6. What happens to benefits while you’re on leave in Indiana?

While on leave in Indiana, benefit coverage depends on whether the leave is paid or unpaid. For paid leave, premiums for health and dental insurance as well short or long-term disability are deducted as usual and coverage continues uninterrupted.

During unpaid leave, if the absence spans fewer than six pay periods, missed premiums are collected from future paychecks. For longer absences, you may be offered COBRA continuation.

Upon your return from a job-protected leave, the benefits are reinstated. Plus, you are entitled to the same or equivalent position. 

7. Can unused leave roll over in Indiana?

For Indiana state employees, unused vacation, sick, and personal leave can roll over each year up to certain limits. 

Personal leave has a cap of 22.5 hours—any excess rolls over into sick leave. Leave balances may also be restored if an employee is rehired.

8. Are part-time workers entitled to leave in Indiana?

Yes, part-time state employees in Indiana are entitled to certain types of leave, including vacation, sick, and personal leave, as long as they work at least 50% of a full-time schedule.

Their leave accruals are prorated—typically half the amount full-time employees receive. For example, part-time staff accrue 3.75 hours of sick leave every two months, compared to 7.5 hours for full-time workers.

9. Can you be terminated while on leave in Indiana?

Yes. In Indiana, employment is generally at-will—meaning employers can terminate employees at any time, even during leave, as long as the reason isn’t discriminatory or otherwise illegal.

However, certain types of protected leave, like FMLA, offer job protection. In those cases, termination is not allowed unless it’s unrelated to the leave itself.

Check our detailed guide on Indiana termination laws for more information.

10. Can you resign while on leave in Indiana?

​Yes, you can resign while on leave in Indiana. As an at-will employment state, Indiana allows employees to resign at any time. However, to leave in good standing, state employees must provide at least two weeks’ written notice and are expected to work each scheduled day during that period. Paid leave cannot extend beyond your last day physically present at work.

Important Cautionary Note

This content is provided for informational purposes only. While we make every effort to ensure the accuracy of the information presented, we cannot guarantee that it is free of errors or omissions. Users are advised to independently verify any critical information and should not solely rely on the content provided.