Indiana

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Discussion

Indiana: Legislative Updates

APPLIES TO

All Employers with Employees in IN

EFFECTIVE

JUL 1, 2026

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Quick Look

  • Indiana’s discrimination law is amended to expressly incorporate Title VII violations as state-law violations, significantly expanding liability exposure for covered employers.
  • Indiana’s new FAIRNESS Act prohibits employers from knowingly or intentionally employing unauthorized workers, but provides a safe harbor for employers that use E-Verify or comparable diligence practices.
  • Indiana increases battery penalties for assaults against health care and school employees and creates a new semiannual reporting obligation to the Indiana Department of Labor for employers of those workers.

Discussion

Indiana passed several bills this session impacting employer obligations across discrimination, immigration compliance, and workplace violence. Key aspects of each are summarized below.

 

Employer Liability Under State Discrimination Law. HB 1193 amends the definition of “discriminatory practice” under the Indiana Civil Rights Law (ICRL) to expressly provide that any violation of Title VII also constitutes a violation of state law. The practical impact is greatest for Indiana employers with 6 to 14 employees that fall below Title VII’s 15-employee threshold and have historically been outside federal discrimination law’s substantive reach. Now, the ICRL’s lower six-employee threshold holds those employers to the same discrimination and retaliation standards as larger, Title VII-covered employers. Separately, the bill also reduces the Indiana Civil Rights Commission’s role in litigating claims on behalf of individuals, shifting more of that burden to private parties and the state.

 

New FAIRNESS Act. Indiana’s new Forging American Independence, Restoring National Exceptionalism Safely and Securely (FAIRNESS) Act (SB 76) prohibits employers from knowingly or intentionally recruiting, hiring, or continuing to employ unauthorized workers. “Employer” is defined broadly to include any person or agent employing workers in Indiana. Importantly, the law provides a compliance safe harbor when an employer is not in violation if it exercised “reasonable diligence” before recruiting, hiring, or continuing to employ the individual, which includes using E-Verify (absent circumstances suggesting the verification was unreliable) or following industry-standard verification practices.

 

The Indiana attorney general is empowered to enforce the law, typically by issuing a Civil Investigatory Demand to employers under investigation. Before filing an enforcement action, the attorney general must provide written notice of probable cause, giving the employer 15 business days to either demonstrate reasonable diligence or submit a corrective affidavit confirming it has terminated unauthorized workers, verified all current employees’ work eligibility, and will not knowingly employ unauthorized workers going forward. Satisfying either option stops the enforcement action.

 

If an employer fails to satisfy either option and the attorney general determines probable cause exists, the state may bring an action to enjoin the violation and seek additional relief, including a graduated penalty structure tied to an employer’s operating authorizations (licenses, permits, certificates, registrations, charters, and similar authorizations):

 

  • First violation (single): Suspension of all operating authorizations at the violation location for five business days.
  • First violation (multiple): Suspension at affected locations for ten business days.
  • Repeat violation: Suspension at affected locations for 180 days.
  • After 180-day suspension: Permanent revocation of all operating authorizations at affected locations.
  • Willful violations (three or more locations, after prior revocation): Permanent revocation of all operating authorizations statewide.

 

Courts may also impose a probationary period of six months to two years with quarterly compliance reporting. Notably, a suspended or revoked employer remains responsible for its tax withholding obligations.

 

Workplace Violence Against Healthcare and School Employees. HB 1249, a broader criminal law bill, increases penalties for battery committed against certain health care and school employees. More significantly for employers, the law creates a new semiannual reporting obligation, requiring employers of health care or school employees who are victims of battery to report these incidents to the Indiana Department of Labor. Relatedly, the law repeals the prior framework that required public schools to report student-caused employee injuries to the Department of Education for inclusion in a public database, consolidating that reporting into the new Department of Labor process.

 

Action Items

  1. Review anti-discrimination, harassment, and retaliation policies and procedures for compliance.
  2. Review employment eligibility verification practices for compliance.
  3. Consult with legal counsel on application of employer safe harbor protections.
  4. Implement tracking and reporting procedures for covered workplace batteries, as applicable.
  5. Have appropriate personnel trained on all updated requirements.

 

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2026 ManagEase