Articles About Indiana Labor And Employment Law.

On April 2, 2015, the Indiana General Assembly passed, and the Governor signed, an amendment to the controversial new Indiana Religious Freedom Restoration Act (“Indiana RFRA”) that explicitly prevents the statute from being used as a tool for discrimination. The Indiana RFRA, as amended, will become effective on July 1, 2015.

Indiana’s Right to Work law again has withstood a constitutional challenge in the state’s highest court. The Indiana Supreme Court dismissed a second challenge to the state’s Right to Work law based on its November decision in Zoeller v. Sweeney, 19 N.E.3d 749 (Ind. 2014), holding that the law, on its face, does not violate Indiana’s Constitution. (The justices had declined to consolidate the two cases.) Zoeller v. United Steel, Paper, and Forestry, Rubber Manufacturing, Allied Industrial and Service Workers Int’l Union, et al., No. 45S00-1407-PL-492 (Ind. Dec. 16, 2014).

Indiana’s Right to Work law has withstood its first challenge in the state’s highest court. The Indiana Supreme Court upheld the law’s constitutionality in a 5-0 decision in Zoeller, et al. v. Sweeney, et al., No. 45S00-1309-PL-596 (Nov. 6, 2014). The decision reverses an opinion by Lake County Superior Court Judge John M. Sedia that previously declared the law unconstitutional.

Halfway through its 2014 session, the Indiana General Assembly is considering two bills that, if passed, could significantly affect employers.

Indiana’s “right to work” law violates the state constitution’s guarantee of just compensation for services rendered, a Lake County (Indiana) Superior Court Judge has held. Sweeney v. Zoeller, No. 45D01-1305-PK-52 (Ind. Super. Ct. Sept. 5, 2013). Indiana Attorney General Greg Zoeller has filed an appeal and the case will go directly to the Indiana Supreme Court (since the decision holds a state statute unconstitutional), which likely will overturn the trial court decision. Meanwhile, the trial court has stayed relief for the duration of any appeal and the law remains in full force and effect.

On September 5, 2013, Indiana Superior Court Judge John Sedia ruled that the Indiana right-to-work law violates Article I, Section 21 of the Indiana Constitution, which provides that: “No person’s particular services shall be demanded, without just compensation.” The plaintiffs in Sweeney v. Zoeller, who included the AFL-CIO and the International Union of Operating Engineers, alleged that the statute compelled International Union of Operating Engineers, Local 150 to provide a particular service to individual employees it represents without requiring them to pay for that service.

The Indiana Court of Appeals determined in an unpublished opinion that an employer presented a prima facie case that a five-year restriction in a non-compete agreement was reasonable. Mayne v O’Bannon Publishing Co., 36 IER Cases 279 (Ind. Ct. App. 2013). Elizabeth Mayne operated a small commercial printing business in Louisville, Kentucky for some time and decided to close the business and accept employment with O’Bannon Publishing Co. just across the Ohio River in Southern Indiana.

Indiana Governor Mike Pence has signed into law legislation permitting individuals arrested or convicted of certain crimes to have those records expunged. In addition, the new law (House Enrolled Act 1482) prohibits an employer from discriminating against any person because a conviction or arrest record was expunged and restricts an employer’s ability to request information from applicants regarding criminal convictions. The law becomes effective July 1, 2013.

Legislation under consideration in Indiana would require all public and charter schools to have a trained, armed “school protection officer” on the school’s premises during regular school hours. If adopted, the legislation (Ind. S.B. 1, as amended, Apr. 2, 2013) would be the first in the nation to require armed employees in schools. The proposed legislation does not apply to private schools.

The EEOC’s April 25, 2012 updated enforcement guidance on the use of arrest and conviction records by employers has generated renewed and substantial interest in the controversial subject of criminal background checks in the context of Title VII of the Civil Rights Act of 1964. Although it is important for employers to review the EEOC’s updated guidance, employers also need to be mindful of the increasing number of related state laws.

Indiana’s statewide smoking ban takes effect July 1, 2012. Indiana House Enrolled Act No. 1149 (soon to be Indiana Code, title 7.1, article 5, chapter 12) (“the Act”) prohibits smoking in:

Indiana has become the 40th state in the country to enact a statewide ban on smoking in places of employment. The ban, signed by Governor Mitch Daniels on March 19, 2012, prohibits smoking in public places, places of employment, and government vehicles. The new law will become effective on July 1, 2012. Individuals and establishments found in violation of the law can be fined or be subjected to a civil action brought by designated entities. IC 7.1-5-12 et seq.

Indiana joins Alabama, Arizona, Arkansas, Florida, Georgia, Idaho, Iowa, Kansas, Louisiana, Mississippi, Nebraska, Nevada, North Carolina, North Dakota, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia and Wyoming as states where forced unionism is prohibited. Several other states are considering right-to-work legislation.

Indiana’s new right-to-work law amends the Indiana Code to prohibit collective bargaining agreements that would require workers to pay union dues or fees. The new law, signed by Indiana Governor Mitch Daniels on February 1, 2012, applies to any written or oral contract or agreement entered into, modified, renewed, or extended after March 14, 2012. It does not apply to or abrogate a written or oral contract or agreement in effect on March 14, 2012.

Can an Indiana employer with reasonable suspicion ask an employee if he has a gun in his briefcase? Not without opening itself up for liability under Indiana’s new Disclosure of Firearm or Ammunition Information as a Condition of Employment Law.