A new Indiana law requires health services employers to buy workers' compensation insurance for student workers in apprenticeships and work-based learning programs.
Most health services employers in Indiana don't realize that a provision buried in SB0080 is about to create a new insurance requirement and contractual obligation for their organizations—one that takes effect July 1, 2026.
Here's what you need to know.
Under Section 300 of SB0080 (codified as IC 20-20.5-11.5-4(a)), any employer in Indiana who participates in work-based learning programs must do two things:
First, execute a written agreement. Before a student worker begins, you must have a signed written agreement in place. This formalizes the relationship and the terms of the work-based learning arrangement.
Second, carry workers' compensation insurance. You must obtain and maintain workers' compensation coverage specifically for student workers participating in your program. This is not optional, and it applies regardless of how many hours the student works or whether you typically carry workers' comp for other employees.
If your health services organization participates in any of these programs, the rule applies to you:
This includes nursing homes, clinics, hospitals, home health agencies, and other health services employers who bring in student learners through formal programs—whether sponsored by schools, community colleges, or training organizations.
The practical impact is straightforward: you'll need to budget for an additional workers' compensation insurance cost. The amount depends on your carrier, the number of students, and the classification of work they perform. You'll also need to ensure your written agreements are in place and compliant before July 1, 2026.
This is not a gray area. The law is mandatory, and it creates a direct contractual and insurance obligation. If you're currently hosting student workers without this coverage or without a written agreement, you'll need to address both before the effective date.
The good news: this is manageable. Contact your workers' compensation insurance carrier now to discuss adding student worker coverage to your policy. Work with your legal or HR team to document the written agreements. Neither step is complicated, but both require planning.
Effective date: July 1, 2026. You have time to prepare, but the deadline is firm. If you're unsure whether your organization is affected, review your current student worker arrangements against the four program types listed above.
For more details, refer to Section 300, IC 20-20.5-11.5-4(a), page 377 of SB0080.
Source: SB0080, Section 300, IC 20-20.5-11.5-4(a), Indiana Code.