Indiana 2026 Regular Session

Indiana Senate Bill SB0020

Introduced
12/8/25  

Caption

Voluntary family leave insurance program.

Impact

Once implemented, SB0020 is expected to significantly alter how family leave is handled in the state, potentially impacting existing labor laws and employee benefits. Employers that participate and contribute to the family leave insurance program will be eligible for a tax deduction equivalent to 200% of their contributions, which is designed to encourage small businesses to engage with the program. This could lead to broader support for employee benefits among small employers, providing a safety net for workers taking necessary family leave without the concern of lost income.

Summary

Senate Bill No. 20 introduces a Voluntary Family Leave Insurance Program in Indiana aimed at providing financial benefits to employees who choose to participate. The bill mandates that the Indiana Department of Insurance establish this program by January 1, 2027, with the purpose of allowing employees to receive family leave insurance benefits. Importantly, the program will be funded by contributions from both employers and employees, establishing a trust fund specifically for this purpose. The legislation outlines the administrative structure and key criteria for participation, highlighting the program's voluntary nature.

Contention

As SB0020 moves through the legislative process, potential points of contention may arise regarding its implications for small businesses and the financial sustainability of the insurance program. Critics may raise concerns about the fairness of mandating contributions or about the potential administrative burdens on smaller employers. Supporters, on the other hand, may argue the necessity of providing families with financial stability during critical times, therefore fostering a healthier workforce and competitive business environment.

Companion Bills

No companion bills found.

Previously Filed As

IN SB0029

Voluntary family leave insurance program.

IN SB0115

Paid family and medical leave program.

IN HB1595

Long term care insurance partnership program.

IN HB1574

School based family mental health pilot program.

IN HB1587

Insurance matters.

IN SB0499

Hoosier families first fund.

IN SB0282

Leaves of absence for local officeholders.

IN SB0488

Skills training pilot program.

IN SB0512

Insurance pooling for political subdivisions.

IN HB1501

Facilities and transportation pilot programs.

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