A new Indiana law requires salon and personal care employers to carry workers' compensation insurance for student workers in apprenticeships and work-based learning programs.
Most salon and personal care owners in Indiana don't realize that a provision buried in SB0080 will create a direct insurance and compliance obligation if they participate in apprenticeships or work-based learning programs—and the deadline is closer than you might think.
Effective July 1, 2026, any salon or personal care business that employs students in apprenticeships, youth apprenticeships, pre-apprenticeships, or work-based learning courses must:
This requirement is codified in Section 300 of SB0080, specifically IC 20-20.5-11.5-4(a), found on page 377 of the bill text.
If your salon currently hosts or is considering hosting student apprentices—whether through a formal apprenticeship program, a youth apprenticeship, a pre-apprenticeship pathway, or a school-based work-based learning course—this law applies to you.
This includes salons that partner with high schools, community colleges, or registered apprenticeship programs to provide hands-on training in cosmetology, esthetics, nail care, or related fields.
Insurance cost: You'll need to verify that your workers' compensation policy covers student workers, or add them to your coverage. This may increase your premium, depending on your current policy and the number of students you employ.
Written agreement: Before a student begins work, you must have a signed written agreement in place. This should clarify the terms of the work-based learning arrangement and document that insurance coverage is in effect.
Compliance obligation: Failure to maintain the required insurance or execute the written agreement could expose your business to liability and potential penalties.
The effective date is July 1, 2026. If you currently employ student workers or apprentices, now is the time to:
If you're considering starting an apprenticeship or work-based learning program, factor the insurance requirement into your planning. Many schools and apprenticeship programs can provide guidance on standard agreement language and insurance expectations.
Source: Indiana Senate Bill 0080, Section 300, IC 20-20.5-11.5-4(a), page 377. For a free, detailed summary of how this provision applies to your salon or personal care business, contact your state trade association or local chamber of commerce.