HB 1196

                                                          Introduced Version
           HOUSE BILL No. 1196
                 _____
              DIGEST OF INTRODUCED BILL
Citations Affected: IC 22-4-15-1; IC 22-5-4.6; IC 22-5-9.4.
Synopsis: Employment and vaccinations. Provides that an employer
may require an immunization only if the employer respects the
employee's right to refuse an immunization. Provides that an employee
shall be free from coercion or an adverse action based on the
employee's refusal of an immunization. Requires an employer that
offers an immunization at no cost to an employee to provide certain
notice to the employee. Provides that a violation may be reported to the
department of labor (department). Requires the department to impose
a civil penalty of $5,000 per incident. Allows an employee to bring a
civil action against an employer to enforce the provisions. Repeals
provisions concerning exemptions from COVID-19 immunization
requirements. Makes a corresponding change.
Effective: Upon passage.
                             Borders
   January 5, 2026, read first time and referred to Committee on Employment, Labor and
Pensions.
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                                                                                       Introduced
            Second Regular Session of the 124th General Assembly (2026)
 PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
 Constitution) is being amended, the text of the existing provision will appear in this style type,
 additions will appear in this style type, and deletions will appear in this style type.
   Additions: Whenever a new statutory provision is being enacted (or a new constitutional
 provision adopted), the text of the new provision will appear in this style type. Also, the
 word NEW will appear in that style type in the introductory clause of each SECTION that adds
 a new provision to the Indiana Code or the Indiana Constitution.
  Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
 between statutes enacted by the 2025 Regular Session of the General Assembly.
                   HOUSE BILL No. 1196
    A BILL FOR AN ACT to amend the Indiana Code concerning labor
 and safety.
     Be it enacted by the General Assembly of the State of Indiana:
1     SECTION 1. IC 22-4-15-1, AS AMENDED BY P.L.186-2025,
2 SECTION 121, IS AMENDED TO READ AS FOLLOWS
3 [EFFECTIVE UPON PASSAGE]: Sec. 1. (a) Regarding an individual's
4 most recent separation from employment before filing an initial or
5 additional claim for benefits, an individual who voluntarily left the
6 employment without good cause in connection with the work or was
7 discharged from the employment for just cause is ineligible for waiting
8 period or benefit rights for the week in which the disqualifying
9 separation occurred and until:
10(1) the individual has earned remuneration in employment in at
11least eight (8) weeks; and
12(2) the remuneration earned equals or exceeds the product of the
13weekly benefit amount multiplied by eight (8).
14 If the qualification amount has not been earned at the expiration of an
15 individual's benefit period, the unearned amount shall be carried
16 forward to an extended benefit period or to the benefit period of a
17 subsequent claim.
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1     (b) When it has been determined that an individual has been
2 separated from employment under disqualifying conditions as outlined
3 in this section, the maximum benefit amount of the individual's current
4 claim, as initially determined, shall be reduced by an amount
5 determined as follows:
6(1) For the first separation from employment under disqualifying
7conditions, the maximum benefit amount of the individual's
8current claim is equal to the result of:
9(A) the maximum benefit amount of the individual's current
10claim, as initially determined; multiplied by
11(B) seventy-five percent (75%);
12rounded (if not already a multiple of one dollar ($1)) to the next
13higher dollar.
14(2) For the second separation from employment under
15disqualifying conditions, the maximum benefit amount of the
16individual's current claim is equal to the result of:
17(A) the maximum benefit amount of the individual's current
18claim determined under subdivision (1); multiplied by
19(B) eighty-five percent (85%);
20rounded (if not already a multiple of one dollar ($1)) to the next
21higher dollar.
22(3) For the third and any subsequent separation from employment
23under disqualifying conditions, the maximum benefit amount of
24the individual's current claim is equal to the result of:
25(A) the maximum benefit amount of the individual's current
26claim determined under subdivision (2); multiplied by
27(B) ninety percent (90%);
28rounded (if not already a multiple of one dollar ($1)) to the next
29higher dollar.
30     (c) The disqualifications provided in this section shall be subject to
31 the following modifications:
32(1) An individual shall not be subject to disqualification because
33of separation from the individual's employment if:
34(A) the individual left to accept with another employer
35previously secured permanent full-time work which offered
36reasonable expectation of continued covered employment and
37betterment of wages or working conditions and thereafter was
38employed on said job;
39(B) having been simultaneously employed by two (2)
40employers, the individual leaves one (1) such employer
41voluntarily without good cause in connection with the work
42but remains in employment with the second employer with a
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1reasonable expectation of continued employment; or
2(C) the individual left to accept recall made by a base period
3employer.
4(2) An individual whose unemployment is the result of medically
5substantiated physical disability and who is involuntarily
6unemployed after having made reasonable efforts to maintain the
7employment relationship shall not be subject to disqualification
8under this section for such separation.
9(3) An individual who left work to enter the armed forces of the
10United States shall not be subject to disqualification under this
11section for such leaving of work.
12(4) An individual whose employment is terminated under the
13compulsory retirement provision of a collective bargaining
14agreement to which the employer is a party, or under any other
15plan, system, or program, public or private, providing for
16compulsory retirement and who is otherwise eligible shall not be
17deemed to have left the individual's work voluntarily without
18good cause in connection with the work. However, if such
19individual subsequently becomes reemployed and thereafter
20voluntarily leaves work without good cause in connection with the
21work, the individual shall be deemed ineligible as outlined in this
22section.
23(5) An otherwise eligible individual shall not be denied benefits
24for any week because the individual is in training approved under
25Section 236(a)(1) of the Trade Act of 1974, nor shall the
26individual be denied benefits by reason of leaving work to enter
27such training, provided the work left is not suitable employment,
28or because of the application to any week in training of provisions
29in this law (or any applicable federal unemployment
30compensation law), relating to availability for work, active search
31for work, or refusal to accept work. For purposes of this
32subdivision, the term "suitable employment" means with respect
33to an individual, work of a substantially equal or higher skill level
34than the individual's past adversely affected employment (as
35defined for purposes of the Trade Act of 1974), and wages for
36such work at not less than eighty percent (80%) of the individual's
37average weekly wage as determined for the purposes of the Trade
38Act of 1974.
39(6) An individual is not subject to disqualification because of
40separation from the individual's employment if:
41(A) the employment was outside the individual's labor market;
42(B) the individual left to accept previously secured full-time
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1work with an employer in the individual's labor market; and
2(C) the individual actually became employed with the
3employer in the individual's labor market.
4      (7) An individual who, but for the voluntary separation to move
5      to another labor market to join a spouse who had moved to that
6      labor market, shall not be disqualified for that voluntary
7      separation, if the individual is otherwise eligible for benefits.
8      Benefits paid to the spouse whose eligibility is established under
9      this subdivision shall not be charged against the employer from
10      whom the spouse voluntarily separated.
11      (8) An individual shall not be subject to disqualification if the
12      individual voluntarily left employment or was discharged due to
13      circumstances directly caused by domestic or family violence (as
14      defined in IC 31-9-2-42). An individual who may be entitled to
15      benefits based on this modification may apply to the office of the
16      attorney general under IC 5-26.5 to have an address designated by
17      the office of the attorney general to serve as the individual's
18      address for purposes of this article.
19      (9) An individual shall not be subject to disqualification if the
20      individual
21(A) has requested an exemption from an employer's
22COVID-19 immunization requirement;
23(B) has complied with the requirements set forth in
24IC 22-5-4.6; and
25(C) was discharged from employment for failing or refusing to
26receive an immunization. against COVID-19.
27 As used in this subsection, "labor market" means the area surrounding
28 an individual's permanent residence, outside which the individual
29 cannot reasonably commute on a daily basis. In determining whether
30 an individual can reasonably commute under this subdivision, the
31 department shall consider the nature of the individual's job.
32    (d) "Discharge for just cause" as used in this section is defined to
33 include but not be limited to:
34      (1) separation initiated by an employer for falsification of an
35      employment application to obtain employment through
36      subterfuge;
37      (2) knowing violation of a reasonable and uniformly enforced rule
38      of an employer, including a rule regarding attendance;
39      (3) if an employer does not have a rule regarding attendance, an
40      individual's unsatisfactory attendance, if good cause for absences
41      or tardiness is not established;
42      (4) damaging the employer's property through willful and wanton
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1      misconduct;
2      (5) refusing to obey instructions;
3      (6) conduct endangering safety of self or coworkers;
4      (7) incarceration in jail following conviction of a misdemeanor or
5      felony by a court of competent jurisdiction; or
6      (8) any breach of duty in connection with work which is
7      reasonably owed an employer by an employee.
8    (e) To verify that domestic or family violence has occurred, an
9 individual who applies for benefits under subsection (c)(8) shall
10 provide one (1) of the following:
11      (1) A report of a law enforcement agency (as defined in
12      IC 10-13-3-10).
13      (2) A protection order issued under IC 34-26-5.
14      (3) A foreign protection order (as defined in IC 34-6-2.1-76).
15      (4) An affidavit from a domestic violence service provider
16      verifying services provided to the individual by the domestic
17      violence service provider.
18    SECTION 2. IC 22-5-4.6 IS REPEALED [EFFECTIVE UPON
19 PASSAGE]. (Exemptions from COVID-19 Immunization
20 Requirements).
21    SECTION 3. IC 22-5-9.4 IS ADDED TO THE INDIANA CODE
22 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
23 UPON PASSAGE]:
24    Chapter 9.4. Immunization Requirements
25    Sec. 1. As used in this chapter, "coercion" means the use of
26 intimidation, threats, or force intended to convince an individual
27 to take an immunization against the individual's will.
28    Sec. 2. As used in this chapter, "employee" means an individual
29 who works for an employer on a full-time or part-time basis, either
30 paid or unpaid. The term includes:
31      (1) an independent contractor;
32      (2) a subcontractor; and
33      (3) a student who works as a trainee or an intern.
34    Sec. 3. As used in this chapter, "employer" means:
35      (1) the state;
36      (2) any board, commission, department, division, bureau,
37      committee, agency, governmental subdivision, military body,
38      authority, or other instrumentality of the state;
39      (3) a state educational institution (as defined in
40      IC 21-7-13-32);
41      (4) a political subdivision (as defined in IC 36-1-2-13); or
42      (5) a sole proprietor, corporation, partnership, limited
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1      liability company, or other entity that has one (1) or more
2      employees.
3 The term does not include the United States and its agencies and
4 instrumentalities.
5    Sec. 4. As used in this chapter, "immunization" means the
6 treatment of an individual with a vaccine intended to produce
7 immunity.
8    Sec. 5. (a) An employer may require an immunization only if the
9 employer respects the employee's right to refuse an immunization.
10    (b) An employee shall be free from:
11      (1) coercion; or
12      (2) an adverse action, including discrimination with respect
13      to:
14(A) the employee's tenure, compensation, and benefits;
15(B) terms, conditions, and privileges of employment;
16(C) uniform or attire;
17(D) use of areas open to immunized employees; or
18(E) testing in the absence of symptoms when immunized
19employees are not equally required to submit to testing;
20 based on the employee's refusal of an immunization.
21    Sec. 6. A:
22      (1) contract;
23      (2) bid specification; or
24      (3) agreement;
25 that is entered into, issued, amended, or renewed after March 31,
26 2026, may not contain a provision requiring an employee to receive
27 an immunization that limits in any way the rights and protections
28 provided to an employee under this chapter.
29    Sec. 7. (a) Nothing in this chapter shall be construed to:
30      (1) require an employer to impose a requirement that
31      employees receive an immunization; or
32      (2) preclude an employer from offering an immunization at no
33      cost to an employee.
34    (b) If an employer offers an immunization at no cost to an
35 employee, the employer must notify the employee at the time of the
36 offer in writing that the employee has the right to refuse the
37 immunization free from coercion or an adverse action with the
38 following statement: "IC 22-5-9.4-7 requires that an employer
39 notify an employee that an employee's acceptance of an
40 immunization is voluntary. An employee has the right to refuse the
41 immunization free from coercion or an adverse action, including
42 discrimination with respect to:
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1(1) the employee's tenure, compensation, and benefits;
2(2) terms, conditions, and privileges of employment;
3(3) uniform or attire;
4(4) use of areas open to immunized employees; or
5(5) testing in the absence of symptoms when immunized
6employees are not equally required to submit to testing.
7 If an employee believes that the employee is being coerced into
8 receiving an immunization or if the employee refuses the
9 immunization and suffers an adverse action, the employee has the
10 right to report the violation to the department of labor, the
11 employer may be subject to a civil penalty, and the employee may
12 bring a civil action against the employer.".
13     Sec. 8. (a) A violation of this chapter may be reported to the
14 department of labor.
15     (b) The department of labor shall impose a civil penalty of five
16 thousand dollars ($5,000) per incident for a violation of this
17 chapter.
18     (c) A civil penalty collected under this section shall be deposited
19 in the state general fund.
20     Sec. 9. (a) An employee may bring a civil action against an
21 employer to enforce this chapter.
22     (b) If an employer is found to have violated this chapter, the
23 court may do the following:
24(1) Award:
25(A) actual damages; and
26(B) court costs and reasonable attorney's fees;
27to the prevailing employee.
28(2) Enjoin further violation of this chapter.
29     Sec. 10. This chapter does not limit an employee's rights or
30 remedies under any other state or federal law.
31     SECTION 4. An emergency is declared for this act.
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