Bill > SB0029

This bill establishes a voluntary family leave insurance program in Indiana that will be administered by the department of insurance, beginning January 1, 2026. The program will allow employees to voluntarily participate in a family leave insurance system where they can contribute to a trust fund and receive benefits for family leave, with contribution rates determined annually by the department. Employees will have the option to select benefit levels of 50%, 75%, or 100% of their salary and can choose the number of weeks they want coverage for, with eligibility requirements based on the federal Family and Medical Leave Act. Small businesses (defined as having fewer than 50 employees) that participate in the program and contribute to the trust fund will be eligible for a significant tax deduction equal to 200% of their contributions. The program will be funded through employee and employer contributions, potential general assembly appropriations, and other funding sources. A trust fund will be established to manage the program's finances, with money not spent in a given year rolling over rather than reverting to the general fund. By November 1, 2025, the department must submit a report to the legislative council detailing the proposed program and any needed legislative changes.

Business and Industry

https://iga.in.gov/legislative/2025/bills/senate/29/details