Indiana HEA 1098: work-based learning and workers' comp.
What Indiana's 2026 work-based learning liability law says about written agreements, workers' comp, and third-party employers of record, in plain English.
Last reviewed October 20, 2026.
The short version
- HEA 1098 became Public Law 51 when the Governor signed it on March 3, 2026. It takes effect July 1, 2026.1
- It covers apprenticeships, modern youth apprenticeships, qualifying pre-apprenticeships, and work based learning courses.2
- When an intermediary, industry talent association, or school connects a student with an employer, they and the employer enter a written agreement about workers' comp coverage, and they can comply through an agreement with a third-party employer of record.2
- Subject to certain limitations, students performing services for an employer in these programs are entitled to workers' comp benefits.1
Which programs count
The bill defines a "work based learning program" as:2
- an apprenticeship program (IC 20-43-8-0.3);
- a modern youth apprenticeship (IC 20-51.4-2-9.5);
- a pre-apprenticeship program that meets the elements of a quality pre-apprenticeship program established by the U.S. Department of Labor; and
- a work based learning course (IC 20-43-8-0.7).
It does not include virtual, remote, or online programs where the student works mainly outside an employer-controlled physical worksite, or activities without ongoing work responsibilities or recurring placement, such as a career awareness visit or field trip.
Written agreements and workers' comp
If an intermediary, an industry talent association, or a school connects a student with an employer for work experience in one of these programs, the bill text requires that organization and the employer to enter into a written agreement under which the employer assumes responsibility for obtaining worker's compensation coverage for any student who performs services for the employer as part of the program.2
The same section lets an intermediary, industry talent association, or school comply by entering into an agreement with a third-party employer of record.2
Other changes in the law
- It repeals Indiana's older provisions tied to the federal School to Work Opportunities Act under the worker's compensation and occupational diseases laws.1
- Insurer underwriting decisions and rating factors for a covered participant must be based on objective, risk-based criteria applied uniformly and without regard to the student's age.1
Where InternCrew fits
InternCrew is the employer of record for students and young adults. We carry payroll, HR, compliance, and workers' comp for every student we place, and the host employer supervises the work and teaches the craft. If you're a school, intermediary, or employer setting up placements, see how InternCrew works for employers or read about what an employer of record for interns does.
Sources
- Indiana General Assembly, House Bill 1098 (2026): bill details, digest, and actions (Public Law 51, signed March 3, 2026).
- Engrossed House Bill 1098, adding IC 20-20-38.6 (Sec. 3 program definitions and exclusions; Sec. 4 written agreements and third-party employer of record). Compare the enrolled act for final text.
- Indiana Department of Labor, Youth Employment for related youth employment rules.
HEA 1098 questions
What is Indiana HEA 1098?
House Enrolled Act 1098 is a 2026 Indiana law on work-based learning liability. It was signed by the Governor on March 3, 2026 as Public Law 51, and it takes effect July 1, 2026 (Indiana General Assembly).
Which programs does it cover?
The bill defines a "work based learning program" as an apprenticeship program, a modern youth apprenticeship, a pre-apprenticeship program that meets the U.S. Department of Labor's quality elements, or a work based learning course. It excludes virtual or remote programs done mainly outside an employer-controlled worksite, and one-off activities like career awareness visits or field trips.
Does it require a written agreement?
Yes. When an intermediary, an industry talent association, or a school connects a student with an employer for a work based learning program, the bill text requires a written agreement with the employer addressing responsibility for workers' compensation coverage for the student.
Can a third-party employer of record be used?
The bill text allows an intermediary, industry talent association, or school to comply with the agreement requirement by entering into an agreement with a third-party employer of record. Confirm how this applies to your program with your own counsel and insurance carrier.
Are students in these programs covered by workers' comp?
According to the official digest, subject to certain limitations, a student who performs services for an employer as part of a work based learning program is entitled to benefits under Indiana's worker's compensation and occupational diseases compensation laws.
Can insurers rate a policy differently because a student is under 18?
The official digest says underwriting decisions and rating factors applied to a participant must be based on objective, risk-based criteria applied uniformly and without regard to the age of the student covered.
Is this legal advice?
No. This page is general information to help you ask better questions. Read the statute, and talk with your attorney and insurance carrier about your specific situation.
Setting up work-based learning placements?
We handle the hiring, payroll, and HR so employers can focus on mentoring.