Indiana: Legislative Updates
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APPLIES TO Employers with Employees in IN |
EFFECTIVE As Indicated |
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Quick Look
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Discussion
New Earned Wage Access (EWA) Law
Indiana Governor Mike Braun signed HB 1125, establishing Indiana Earned Wage Access Act and placing new regulatory obligations on providers of on-demand pay services—commonly known as Earned Wage Access (EWA). The law aims to bring consistency and consumer protection to a growing fintech sector that includes providers like DailyPay, Payactiv, and EarnIn.
Effective January 2, 2026, all EWA providers must obtain a license from the Indiana Department of Financial Institutions, renewable annually. The initial and renewal fee is $1,500, with a potential increase to $2,500. Providers must disclose that customer tips are voluntary and are barred from collecting tips, donations, or fees via credit cards. Additionally, at least one EWA offering must be available to customers at no charge, and this must be prominently displayed. The Department of Financial Institutions is empowered to enforce the law and conduct examinations and investigations of EWA providers.
This legislation aligns Indiana with a growing group of states—including Utah, Arkansas, and Wisconsin—that are formalizing oversight of EWA programs.
Ban on Physician Noncompetes
Indiana has taken a significant step in reshaping physician employment agreements with the passage of SB 475, which will prohibit hospitals and affiliated healthcare entities from entering into new noncompete agreements with physicians starting July 1, 2025.
SB 475 builds on Indiana’s previous legislation that restricted noncompetes for primary care physicians and required buyout provisions in physician contracts. Unlike earlier laws, the new statute applies broadly to any physician licensed to practice medicine or osteopathic medicine in the state, regardless of specialty. The law targets hospitals, their parent companies, affiliated managers, and hospital systems, but does not apply to private practices or independent physician groups.
Under the new law, covered employers may not include contract terms that restrict a physician’s ability to practice medicine after leaving employment, whether through geographic limits, time-based restrictions, or financial penalties. Specifically, the legislation bars provisions that impose financial consequences—such as repayment of bonuses or training costs—when a physician chooses to continue practicing elsewhere after three years of employment. Provisions requiring employer consent for future employment, or those that indirectly limit a physician’s ability to continue practicing, are also prohibited.
The new law does provide for some exceptions, specifically excluding nondisclosure agreements protecting confidential business information or trade secrets and non-solicitation agreements that restrict the recruitment of current employees for one year post-employment, provided they don’t interfere with patient care or professional collaboration. Noncompetes entered into as part of a business sale where the physician owned more than 50% of the entity at the time of sale are also permitted.
Importantly, the law only affects agreements executed on or after July 1, 2025. Existing noncompete agreements will remain valid, even if amended or renewed after that date.
Action Items
- Review vendor contracts with EWA providers for compliance with new requirements.
- Have appropriate personnel trained on the requirements.
- Eliminate noncompete language from physician agreements signed on or after July 1, 2025 and review existing noncompete agreements with legal counsel.
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. © 2025 ManagEase