Summary of July 2025 Labor Law Updates for Indianapolis, Indiana
Welcome to the monthly legal roundup for July 2025, brought to you by HKM Employment Attorneys—your trusted source for the latest in Indiana labor law and workplace rights. This summary from our Indianapolist team is designed for employees, HR professionals, and compliance leaders to stay informed and adapt proactively.
July 2025 saw meaningful labor and employment law developments in Indiana:
- SB 409 introduced school-related unpaid leave—affecting parent-employee leave planning.
- SEA 475 banned new physician non-compete agreements tied to hospitals—reshaping healthcare employment contracts.
- State policy updates advanced parental leave and remote-work protocols, reflecting evolving workplace norms.
Employers should review policy manuals, update handbooks, inform managers, and consult legal counsel regarding contract adjustments—especially in healthcare. For guidance on implementing these changes or if you’re navigating a related workplace issue, reach out to HKM Employment Attorneys (https://hkm.com). Our team is ready to help you stay compliant and proactive.”
Senate Bill 409 — Legislature (School-Related Leave)
Date Effective: July 1, 2025
Summary: Indiana enacted Senate Bill 409, which mandates that employers must allow eligible employees to take unpaid, job-protected leave—once per calendar year—to attend school-related meetings. These include attendance conferences and IEP (Individualized Education Program) meetings for their biological, adopted, foster, or stepchildren. Employers may require at least five days’ notice, encourage virtual attendance when feasible, limit the leave to necessary time (including travel), and request documentation from either the school or employee. The law expires on July 1, 2029.
Implications: This is a significant development for working parents. Employers across Indiana must adjust leave policies and employee handbooks to include this annual, job-protected leave. HR teams should train managers to recognize valid requests, confirm notice requirements, and ensure documentation procedures are in place.
Senate Enrolled Act 475 — Legislation (Physician Non-Compete Ban)
Date Effective: July 1, 2025
Summary: Governor Mike Braun signed SE 475, which prohibits non-compete agreements between physicians and hospitals, hospital systems, their parent companies, or affiliated management entities for agreements entered into on or after July 1, 2025. The Act does not alter prior 2020 or 2023 laws but expands restrictions further. It defines covered non-compete provisions broadly—covering financial penalties, geographic limitations, employer consent requirements, and indirect limitations on hospital-based physicians. Certain agreements remain exempt, such as those in a sale‑of‑business where the physician owns over 50%, nondisclosure agreements protecting trade secrets, and non-solicitation agreements limited to one year that do not restrict patient or referral interactions.
Implications: Health systems and hospitals must review current and future physician contracts. Physicians and counsel should assess whether existing non-competes remain enforceable. Employers entering agreements on or after July 1 must ensure compliance or risk invalid contracts.
State Employee Policy Updates — Executive Branch Actions
Date Issued/Effective: July 1, 2025 (announcement in July newsletter)
Summary: Indiana’s state government (via its SPD/TORCH July newsletter) implemented several internal policy updates:
- Leaves and Absences policy revised to comply with SB 409 (see above) and now includes educational meeting leave.
- Childbirth Recovery Leave policy formalized in PeopleSoft, following Executive Order 25‑34, allowing paid leave of six to eight weeks for mothers and extending eligibility to cases of fetal death after 20 weeks.
- A new Remote Work policy, aligned with Executive Order 25‑16, replaced the prior Flexible Work Arrangements policy.
- The previous Flexible Work Arrangements policy was formally rescinded.
Implications: State agencies must align operations, particularly HR and payroll systems, with these new policies. Employers beyond government should take note: the trends toward parental leave and remote work may influence private-sector standards or expectations.
Conclusion: Looking Back on Indiana’s Labor Law Updates from July 2025
As Indiana courts continue to shape employee protections around discrimination, FMLA, wrongful termination, separation agreements, wage disputes, ADA accommodations, non-competes, and hostile work environments, having local counsel matters. At HKM Employment Attorneys in Indianapolis, our fearless litigators—including Katie Bensberg, Natalie Dickey, and Benjamin Ellis—focus solely on representing employees in claims ranging from contract breaches and unpaid wages to whistleblower retaliation and employer investigations. With responsive client care, no-win-no-fee commitment, and deep familiarity with both local and federal labor law, we stand ready to guide you. If recent case outcomes reflect your experience, contact our Indianapolis office to see how we can help protect your rights in state or federal court.
