A new Indiana law requires child care employers to obtain workers' compensation insurance for student workers in apprenticeships and work-based learning programs.
Most child care owners don't realize that if they participate in any work-based learning program—including apprenticeships, youth apprenticeships, or pre-apprenticeships—a new Indiana law will require them to carry workers' compensation insurance for those student workers starting July 1, 2026.
This requirement is buried in SB0080, a code publication bill that includes a significant compliance obligation for small employers in the child care sector.
Under Section 300 of SB0080 (codified as IC 20-20.5-11.5-4(a), page 377), any employer participating in work-based learning must:
The law applies to employers offering apprenticeships, youth apprenticeships, pre-apprenticeships, or work-based learning courses. For child care centers, this could include programs where high school students or other learners work on-site as part of their education.
If you currently host student workers without workers' compensation coverage, you'll need to add them to your policy or obtain separate coverage before July 1, 2026. This creates two direct obligations:
Insurance Cost: You'll need to contact your workers' compensation carrier to ensure student workers are covered. Depending on your current policy and the number of students, this may increase your premium.
Contractual Compliance: You must have a written agreement in place with the school or program. This isn't optional—it's a legal requirement under the statute. The agreement should clarify the terms of the work-based learning arrangement and confirm insurance coverage.
This applies if your child care center:
If you've never hosted student workers, this may not affect you immediately. But if you're considering partnering with a school or workforce program, the insurance and agreement requirements are now part of the cost of doing so.
Review your current practices. If you host any student workers, contact your workers' compensation insurance provider now—don't wait until 2026. Ask whether your current policy covers student workers and what the cost would be to add them.
If you're planning to start a work-based learning program, factor in the insurance requirement and the need for a written agreement with the educational partner.
The effective date is July 1, 2026, giving you time to plan, but early action will help you avoid compliance gaps.
This summary reflects SB0080, Section 300, IC 20-20.5-11.5-4(a). For a detailed, business-specific guide tailored to your situation, consider consulting your trade association or legal advisor.