Bill > HB1647

This bill establishes a new state law requiring employers in Indiana to provide paid mental health leave to employees, mandating at least 36 hours of paid leave per calendar year for employees to care for their own mental health. The bill defines key terms such as "employee" (excluding seasonal workers) and "employer" (including state and local government entities), and specifies that employees can use the leave in increments as small as one hour or the smallest increment used by the employer's payroll system. Unused mental health leave will carry over to the next calendar year, but employers are not required to pay out unused leave when an employment relationship ends. The bill requires employees to provide reasonable advance notice when the need for mental health leave is foreseeable and prohibits employers from discriminating against employees who use this leave, meaning employers cannot use mental health leave as a negative factor in hiring, evaluation, promotion, or termination decisions. Employees and employers can also mutually agree to make up missed hours in the same or following pay period without using paid mental health leave, but employers cannot require employees to find replacement workers or work equivalent hours as a condition of taking leave. The law will take effect on July 1, 2025, and apply to contracts entered into or renewed after that date.

Labor and Employment

https://iga.in.gov/legislative/2025/bills/house/1647/details