Summary of September 2025 Labor Law Updates for Indianapolis, Indiana
Welcome to the September 2025 Indiana labor law roundup, brought to you by our Indiana team at HKM Employment Attorneys. Below we review the key legal developments in Indiana during September 2025 that affect employers, employees, and HR professionals — from statutory changes to significant court or administrative actions.
Indiana Amends State Contract Nondiscrimination Clause — Legislation / Policy
Date: September 16, 2025
Summary:
Indiana revised its nondiscrimination clause for state contracts, effective July 1, 2025. Under the updated clause, any state contract initiated or amended on or after that date must include the revised nondiscrimination language. Contractors who fail to include or comply with that clause may face liability under Indiana’s False Claims Act.
Implications:
Public-sector contractors and those entering into new or renewed agreements with the state must update contract templates and ensure nondiscrimination provisions comply with the new standards. Employers doing business with the state should review contract compliance practices, and HR/legal teams should monitor for potential False Claims Act exposure.
Revised Limits on Physician Non-Compete Agreements — Legislation / Regulatory Change
Date: Effective July 1, 2025 (recent implementation)
Summary:
Indiana’s Senate Enrolled Act No. 475 amends the state’s 2020 Physician Non-Compete statute (Ind. Code § 25-22.5-5.5). As of July 1, 2025, non-compete agreements involving licensed physicians and certain hospital or hospital-affiliated entities are heavily constrained. The law forbids provisions that:
- Prevent a physician from practicing with a new employer;
- Impose financial penalties or repayment obligations triggered merely by the physician’s decision to move;
- Require employer consent or equitable relief that effectively restrains mobility.
Notably, the new limits do not apply to existing non-compete agreements entered before July 1, 2025, nor to mere renewals or amendments of such agreements under certain circumstances.
Implications:
Hospitals, medical groups, and other healthcare employers must review physician contracts issued after the effective date to ensure compliance. Physicians may have greater mobility and negotiating leverage under new hires or contract revisions. Employers should ensure legacy contracts remain enforceable under older law, and avoid structural changes that might re-trigger the statute.
Updates to Youth (Child Labor) Employment Rules — Statutory / Regulatory Change
Date: Effective January 1, 2025 (but relevant in 2025 operations)
Summary:
Indiana revised its child labor laws beginning January 1, 2025, relaxing restrictions for older teens (ages 16–17). Under the new rules:
- 16- and-year-olds are no longer subject to state limits on work hours or times of day, aligning more closely with federal law.
- For 14- and 15-year-olds, when school is in session, work before 7 a.m. or after 7 p.m. remains disallowed, and hours are capped; during non-school periods, limits are extended (e.g. work until 9 p.m.)
Implications:
Employers using minor labor must audit scheduling and hour policies for compliance under the updated structure. HR should verify that internal policies, timekeeping, and training reflect the new flexibility for 16- and 17-year-olds. Even though the change took effect at the start of 2025, it remains highly relevant in interpreting labor practices throughout the year, including in September 2025.
Current WARN Notices in Indiana — Administrative / Worker Adjustment (State)
Date: As of September 24, 2025
Summary:
The Indiana Department of Workforce Development maintains a current WARN (Worker Adjustment and Retraining Notification) notices table, reflecting reported mass layoffs, plant closings, or significant workforce reductions in the state.
Implications:
Employers planning large layoffs or closures in Indiana should confirm their obligations under the WARN regime and check the state listings for applicable precedent. Affected employees and local stakeholders can monitor the WARN table for notification of upcoming workforce impacts.
Supreme Court of Indiana — Indianapolis Public Transportation Corporation v. Bush (non-employment, but relevant for sovereign immunity context)
Date: September 15, 2025
Summary:
The Indiana Supreme Court issued a ruling in Indianapolis Public Transportation Corporation v. Bush involving a factual scenario where a 63-year-old man with medical conditions attempted to board a city bus under circumstances involving intoxication. While not a pure labor/employment dispute, the decision addresses aspects of municipal operations, public entity liability, and immunities.
Implications:
Employers in the public sector or public transportation space may find relevant precedent regarding municipal immunity, tort exposure, and interactions with public services. HR or risk management teams in local government or municipal authorities should review how this decision may affect liability considerations in operations and service delivery.
Conclusion: Looking Back on Indiana’s Labor Law Updates from September 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.
