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Bill Summary · SB 115

Legislative bill overview

SB 115 establishes a paid family and medical leave program in Indiana, allowing eligible workers to take paid time off for childbirth, adoption, serious health conditions, or caring for family members. The bill would create a new state-administered benefit system, likely funded through employee and/or employer contributions, to partially replace lost wages during leave periods.

Why is this important

Indiana currently has no state-mandated paid family or medical leave program, leaving many workers to choose between unpaid leave under federal FMLA protections or forgoing time with newborns and ill relatives. This addresses workforce retention, public health outcomes, and economic equity, particularly affecting lower-wage workers who cannot afford unpaid leave. Nine states plus Washington D.C. have similar programs, making this relevant to Indiana's competitiveness in attracting talent.

Potential points of contention

  • Cost and funding mechanism: Whether the program should be employer-funded, employee-funded, or shared; concerns about payroll tax impacts on businesses and workers
  • Eligibility and benefits scope: Disputes over wage replacement percentages (partial vs. full), length of leave, who qualifies (full-time vs. part-time workers), and which conditions are covered
  • Implementation burden: Small business concerns about administrative complexity and potential workforce disruptions; questions about state agency capacity to manage the program

Compiled from official sources — confirm details with the bill’s official record.

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