Indiana Unemployment Law

Unemployment compensation, also called unemployment insurance (UI), is a federal government program administered by the states in conjunction with the U.S. Department of Labor. It’s intended to provide qualified unemployed workers with financial and work search support.

This page summarizes Indiana’s unemployment law and links to more detailed articles that can help you answer specific questions. Because the law is complicated and may be different for your situation, we suggest consulting an employment law expert in a city near you to give you the best advice about your unique circumstances.

Unemployment Eligibility

Each state makes its own rules regarding eligibility and administration, so Indiana may differ from other states regarding factors such as weekly benefit amounts and the duration of benefit payments. You can read more about the general unemployment process and requirements.

The Indiana Department of Workforce Development (DWD) administers the state’s unemployment insurance program.

An Indiana claimant must meet the following requirement to qualify for UI:

• Be unemployed through no fault of their own.
• Have earned sufficient wages in a base period.
• Be able, available, and actively seeking work. Claimants must also attend an orientation at a WorkOne center.

Am I Eligible for Unemployment Benefits if I Quit?

A claimant who quits without a good, work-related reason may not qualify for unemployment benefits.

Following are examples of good, work-related reasons:

• The employer arbitrarily changes the terms or conditions of the work
• The employer fails to correct security violations in the workplace
• Harassment
• Domestic or family violence
• Moving to follow a spouse who accepted a new job

Claimants who take payment in exchange for voluntarily quitting are not eligible for unemployment benefits.

For example, Sally, a resident of Bloomington, may be eligible for unemployment benefits if she quit her job because she was harassed at work.

What if I Get Fired?

A terminated individual is eligible for unemployment benefits only when they are not at fault for being fired. For example, repeated employee misconduct, such as excessive absences, intoxication on the job, or sexual harassment, will typically disqualify the individual for unemployment benefits.

What if I am Laid Off?

An individual whose employer laid them off or has experienced a significant reduction in hours due to lack of work is typically eligible for unemployment benefits. However, they must meet all other state eligibility requirements.

Maintaining Eligibility for Unemployment Benefits

Indiana unemployment insurance recipients must recertify their eligibility by filing a weekly claim voucher to request payment of benefits. In filing a weekly claim, the claimant confirms they have done the following to maintain unemployment insurance eligibility:

• Registered on IndianaCAREERconnect.com.
• Completed at least one work search activity.
• Reported all work, earnings, and self-employment activity for the week.
• Reported anything interfering with the claimant’s ability to work for the week.

Turning down an offer of suitable employment can disqualify a claimant from receiving unemployment insurance.

What Is the Weekly Benefit Amount?

Benefits are available to eligible claimants for up to 26 weeks or until the claimant reaches their maximum benefit amount in the benefit year. The state may extend the benefit period in certain circumstances.

Indianan’s maximum weekly benefit amount (WBA) is $390 per week. The state pays benefit payments via debit card or direct deposit.

What Information Must the Employer Provide?

While states vary in what information they require from an employer for an unemployment insurance claim, the following is typical:

• Confirmation that the employer was required to pay unemployment insurance contributions on the employee’s wages
• The reason for the employee’s separation
• The employee’s last day of work
• Whether the separation is temporary
• The employee’s gross wages for each week during a specified period

Are Unemployment Benefits Taxable?

Indiana unemployment insurance benefits are subject to federal, state, and local taxes. The state provides the worker with Form 1099-G reporting the unemployment benefits paid and any taxes withheld.

So Mark, from Indianapolis, must report his unemployment benefits on his federal, state, and local taxes.

When Can Requirements for Unemployment Benefits Be Waived?

States or the federal government can waive the requirements for unemployment benefits under exceptional circumstances, such as when an emergency forces companies to shut down for some time. For example, New York, Florida, and several other states waived their work search requirement during the COVID-19 pandemic.

Additionally, Indiana, Louisiana, Michigan, and New York, among others, waive the work search requirement if the individual is temporarily laid off or seeking work through a union hiring hall.

What if Indiana Denies My Application for Benefits?

Indiana claimants can appeal a decision to deny benefits within ten days from the date of the Determination of Eligibility.

Claimants can file an appeal either in-person or by fax or mail.

An administrative law judge (ALJ) will hold a hearing by telephone where the claimant and employer will answer questions and provide evidence. The ALJ will review the evidence and issue a decision within two weeks after the hearing.

The claimant may appeal the ALJ’s decision to the UI Review Board within 15 days of the mailing date of the ALJ decision. The claimant can appeal the UI Review Board decision to the Indiana Court of Appeals.

For example, Juan, who lives in Fort Wayne, receives a Determination of Eligibility dated March 3, 2022, which denies him benefits. He has ten days from that date to file an appeal.

If you need help filing an appeal, discussing your options with an employment lawyer is wise.