New hire reporting — 20-day deadline
Indiana Code § 22-4-10-8 and federal law require all employers who employ persons in Indiana to electronically report newly hired and rehired employees to the Indiana New Hire Reporting Center within 20 days of the hire or rehire date. A "rehire" is an employee returning to work after being separated from employment for at least 60 consecutive days. Employers who report electronically may submit in two monthly transmissions, spaced 12 to 16 days apart. Failure to report may result in civil penalties of up to $25 per unreported employee, or up to $500 per employee if the failure is part of a conspiracy between employer and employee.
Source: IC 22-4-10-8 (Indiana Dept. of Workforce Development)
Expunged and sealed criminal records — employer restrictions
Indiana Code § 35-38-9-10(b) makes it unlawful discrimination for any employer to deny employment or a professional license to a person based on a conviction that has been expunged or sealed by a court. This prohibition is absolute — once a court orders expungement under Indiana's Second Chance Law (IC 35-38-9), the employer may not use that conviction as a basis for an adverse hiring decision.
Questioning applicants about criminal history
IC § 35-38-9-10(d) specifies that in any application for employment, a license, or other right or privilege, an employer may question a person about a previous criminal record only in terms that exclude expunged convictions or arrests. The statute provides model language: "Have you ever been arrested for or convicted of a crime that has not been expunged by a court?" An employer who asks a broader question (such as "Have you ever been convicted of a crime?") runs afoul of the statute.
Treatment of expunged records
IC § 35-38-9-10(e) provides that a person whose record is expunged shall be treated as if the person had never been convicted of the offense. The applicant may lawfully answer "No" to a properly phrased criminal-history question if the only conviction on record has been expunged. Employers are prohibited from asking about or considering arrest records that have been expunged, pertain to charges that were dropped or dismissed, or did not lead to conviction.
Sealed vs. marked records
Indiana distinguishes between records that are permanently sealed and those that are marked "expunged" but remain publicly visible. Under IC § 35-38-9-6(a)(1), conviction records for misdemeanors, Class D felonies, and Level 6 felonies (or those reduced to misdemeanors) are permanently sealed when expungement is granted; these records may only be accessed by law enforcement officers acting in official duties or someone with a court order. More serious felony convictions, however, are expunged but remain publicly accessible with a clear notation that they have been expunged under IC § 35-38-9-7. Employers may see the marked expungement on a background check for serious felonies, but the non-discrimination rule in IC § 35-38-9-10(b) still applies — the employer may not deny employment based solely on that expunged conviction.
Exceptions for certain positions
IC § 35-38-9-6(a)(2) and (a)(3) carve out narrow exceptions where sealed records may be disclosed even after expungement. Schools may access sealed records for employment purposes and to grant access or admission to contractors or applicants who are likely to have contact with students, regardless of student age (IC § 35-38-9-6(a)(3)(I)). Professional licensing boards and certain regulated industries (such as mortgage lending under 12 U.S.C. § 5101 et seq.) may also access sealed records when permitted by statute or regulation. Employers in these industries should confirm the specific statutory authorization before accessing expunged records.
Intersection with ban-the-box rules
Indiana does not have a statewide ban-the-box law for private employers. Senate Bill 312, signed April 27, 2017, and effective July 1, 2017, prohibits political subdivisions (counties, municipalities, townships) from enacting ordinances that restrict employers from obtaining or using criminal history information during the hiring process to the extent allowed by state or federal law. SB 312 preempted the Indianapolis ban-the-box ordinance for private vendors. However, a gubernatorial executive order issued in May 2017 bans the box for Indiana Executive Branch public-sector jobs; state agencies may not ask about criminal history on initial applications unless a conviction of a particular crime directly relates to the job. The expunged-records prohibition applies equally to public and private employers; even where criminal-history inquiries are permitted early in the hiring process, employers may not inquire into expunged or sealed records.
Source: Indiana Code § 35-38-9-10 (Unlawful discrimination) Source: Indiana Code § 35-38-9-6 (Sealing and access to sealed records) Source: Indiana Code § 35-38-9-7 (Marking of expunged serious felony records) Source: Senate Bill 312 (2017)