Paid Sick Leave in Indiana: Who Qualifies and How Much You Earn

Indiana does not have a state law that requires private employers to provide paid sick leave. There is no statewide accrual rate, no minimum number of paid sick hours, and no requirement that any employer let you bank time off for illness. Whether you earn paid sick time in Indiana is determined entirely by your employer's own policy, your employment contract, or a collective bargaining agreement. This puts Indiana in line with the federal baseline: the Fair Labor Standards Act (FLSA) sets a $7.25 federal minimum wage and a 40-hour weekly overtime threshold, but it does not require paid sick leave for private-sector workers either. If your employer offers paid sick days, that is a voluntary benefit, and the terms are whatever the company writes into its handbook.

Does Indiana Mandate Paid Sick Leave?

No. Unlike states such as California, New York, Colorado, or neighboring Illinois, Indiana has not enacted a paid sick leave statute covering private employers. There is no Indiana law setting an accrual formula (for example, one hour earned per 30 hours worked), no annual cap on required sick hours, and no carryover rule. Because the state imposes no mandate, there is no "accrual rate" or "cap" written into Indiana law to report. Any rate or cap that applies to you comes from your employer, not from the state.

This means the practical answer to "who qualifies" in Indiana is: employees whose employers choose to offer paid sick leave. A small business with no written policy is generally not breaking any Indiana law by offering zero paid sick days, as long as it pays at least the minimum wage and meets overtime rules.

Indiana Blocks Local Paid-Sick-Leave Ordinances

Some workers ask whether a city or county in Indiana, such as Indianapolis or Bloomington, can require paid sick leave even though the state does not. In Indiana, the answer is no. Indiana law preempts local governments from mandating employee leave or benefits that exceed state and federal requirements. Indiana Code 22-2-16 restricts political subdivisions (cities, towns, and counties) from requiring private employers to provide leave, including paid or unpaid sick leave, beyond what state or federal law requires.

Because of this preemption, you will not find a patchwork of city-level paid sick leave ordinances in Indiana the way you do in states like California or in cities like Chicago. The rule is uniform statewide: no mandate. If you hear about a local sick-leave requirement, verify it carefully, because a binding employer mandate at the city level would conflict with state law.

How Paid Sick Time Usually Works in Indiana

Even without a mandate, many Indiana employers, especially larger companies and public-sector employers, offer paid sick leave or combine it into general paid time off (PTO). When an employer does offer it, these terms are set by policy:

• Accrual or grant. The employer decides whether you earn hours gradually (for example, a few hours per pay period) or receive a lump sum at the start of the year.
• Eligibility. Policies often exclude part-time, temporary, or probationary workers, or impose a waiting period before new hires can use sick time.
• Caps and carryover. The employer sets any annual cap and decides whether unused days roll over or are lost at year-end ("use it or lose it").
• Permitted uses. The employer defines whether sick time covers only your own illness or also a family member's illness, medical appointments, or related needs.

Because these terms are contractual rather than statutory, read your employee handbook closely. In Indiana, a clearly written employer policy is generally enforceable, and the policy controls when and how you can use the time.

PTO and the Indiana Wage Payment Law

Indiana does not require employers to pay out unused sick leave when you leave a job, and it does not require sick leave at all. However, if your employer's policy treats accrued PTO or vacation as earned wages, Indiana's Wage Payment and Wage Claims statutes may require the employer to follow its own policy on payout. Indiana courts have generally held that accrued vacation can be a form of deferred compensation governed by the employer's written terms. The key is what your policy says: if it promises payout of unused time, the employer should honor it; if it states clearly that unused sick or PTO is forfeited on separation, that forfeiture provision is usually enforceable. Pure "sick-only" banks are frequently written as non-payable, which Indiana law permits.

How Indiana Interacts With FMLA and Other Federal Protections

The federal Family and Medical Leave Act (FMLA) is the most important leave protection for many Indiana workers, but it is unpaid. FMLA can provide up to 12 weeks of job-protected leave per year for a serious health condition, the birth or adoption of a child, or to care for a seriously ill family member. It applies to employers with 50 or more employees within a 75-mile radius, and you generally must have worked at least 12 months and 1,250 hours to qualify. FMLA protects your job and group health benefits during leave, but it does not require your employer to pay you. Many workers use accrued employer-provided paid sick leave or PTO to receive pay during otherwise unpaid FMLA leave; employers may also require you to use accrued paid time concurrently with FMLA.

Other federal rules can also apply. The Americans with Disabilities Act (ADA) may require unpaid leave as a reasonable accommodation for a qualifying disability, and pregnancy-related conditions may be covered under the Pregnant Workers Fairness Act. None of these federal laws creates a paid sick leave entitlement, but they can protect your job while you are out.

Where to Verify and Enforce Your Rights

For Indiana-specific questions, the Indiana Department of Labor (IDOL) administers state wage and workplace standards, and the Indiana Department of Workforce Development (DWD) handles unemployment and workforce issues. Because Indiana has no paid sick leave mandate, IDOL will not enforce a "sick leave" claim, but it does handle wage payment and wage claim disputes, which is where an unpaid-PTO-payout problem may belong if your policy promised payout.

• For your own policy: Start with your employee handbook and HR; an enforceable promise of paid sick leave or PTO payout comes from that document.
• For wage payout disputes: Consider filing a wage claim with the Indiana Department of Labor or pursuing a claim under Indiana's Wage Payment statute.
• For FMLA: Contact the U.S. Department of Labor's Wage and Hour Division, which enforces the federal FMLA.
• To confirm current figures: Indiana's minimum wage is $7.25 per hour as of 2026, matching the federal rate; confirm the current figure with the Indiana Department of Labor before relying on it.

Because this is your livelihood, do not assume you have paid sick leave in Indiana unless your employer's written policy or contract grants it. If you believe an employer broke a promise about paid time it actually offered, document the policy and the dates, and contact IDOL or an Indiana employment attorney.

Official Indiana Sources

This page is based on Indiana employment law. Rules and figures change — verify the current details directly with the official Indiana sources below. This is general legal information, not legal advice.

• Indiana Department of Labor (IDOL) — official Indiana agency.
• Indiana DOL Wage & Hour Online Wage Claim Form
• Indiana Code Title 22 (Labor and Safety), Article 2 — Wages, Hours, and Benefits

Federal law and local ordinances may also apply. Federal laws like the Fair Labor Standards Act set a national floor, and your city or county may add protections (such as a higher local minimum wage or paid sick leave). Check both alongside Indiana state law.