IN SB0162

Amends Indiana's unemployment compensation laws effective July 1, 2026, clarifying the definition of "suitable work" specifically applies to extended benefit claims and updating terminology from "individual" to "claimant" throughout the statute.

Removes vacation pay and sick pay from the list of "deductible income" that reduces unemployment benefits, meaning these payments will no longer offset a claimant's weekly benefit amount.

Requires direct deposit of unemployment benefits only to financial institutions with a physical branch in Indiana or those designated as approved depositories by the state treasurer, with exceptions for institutions complying with certain statutory requirements.

Establishes detailed procedures for paying benefits to deceased claimants' estates, including a six-month filing deadline and a hierarchy of payment priority (executor/administrator, then surviving spouse, children, parents, siblings, other relatives).

Requires employers to notify the department of specific separation circumstances (voluntary quit, discharge for cause, gross misconduct, physical condition, other employment, self-employment) and other potentially disqualifying information such as vacation pay or retirement benefits owed to separated claimants.