Labor & Employment

SB 132 prohibits employers from requiring noncompete agreements with employees whose annual compensation is below $150,000. This directly affects lower- and middle-wage workers who might otherwise face restrictions on changing jobs. The key provision bans such agreements for these employees, removing a common tool used by employers to limit workforce mobility. The bill aims to make it easier for these workers to seek new employment without legal constraints.

Makes changes to the definition of a "school resource officer" for provisions relating to the 1977 police officers' and firefighters' pension and disability fund (1977 fund). Provides that a school police department may participate in the 1977 fund. Establishes requirements for establishing a local board for school police departments. Provides that an appointing authority shall waive the age restriction for a school resource officer for purposes of the 1977 fund if: (1) on the date the individual applies to be appointed and hired, the individual is a veteran who has completed at least 20 years of military service; (2) the individual received or is eligible to receive a discharge from the armed forces of the United States under conditions other than certain specified conditions; and (3) the individual meets all other requirements for appointment and hiring. Provides that a school corporation or charter school that employs a school resource officer must enter into a contract or memorandum of understanding with a local law enforcement agency for the purpose of complying with the reporting and payment requirements for purposes of the 1977 fund. Makes conforming amendments.

Requires the department of insurance (department) to establish, not later than January 1, 2027, a voluntary family leave insurance program (program) for the purpose of providing benefits to employees who elect to participate in the program. Sets forth requirements for the program. Allows the department to contract with an outside vendor to administer the program. Requires the department, not later than November 1, 2026, to submit a report to the legislative council and the budget committee concerning the proposed program. Establishes the voluntary family leave insurance program trust fund (trust fund) for the purpose of paying program benefits. Provides that the trust fund consists of employer or employee contributions, appropriations from the general assembly, and money received from any other source. Provides that certain employers are entitled to an adjusted gross income tax deduction equal to the total amount of contributions made by the employer to the trust fund during the taxable year multiplied by 200%.

Requires an employer to notify the Indiana economic development corporation (IEDC) if the employer intends to relocate a call center. Requires, for all contracts entered into or renewed on or after July 1, 2026, that all call center or customer service work for the state be performed entirely within the United States. Requires the IEDC to compile a list of all employers that relocate a call center to a foreign country and to disqualify employers on that list from state grants, loans, and tax credits.