Sec. 2. (a) Payments in lieu of a vacation awarded to an employee by an employing unit shall be considered as deductible income in and with respect to the week in which the vacation occurs.

lawyer woman

Ask an employment law question, get an answer ASAP!
Thousands of highly rated, verified employment lawyers
Specialties include: Employment Law, EEOC, Pension and Compensation, Harassment Law, Discrimination Law, Termination Law, General Legal and more.
Click here to chat with a lawyer about your rights.

Terms Used In Indiana Code 22-4-5-2

  • Dismissal: The dropping of a case by the judge without further consideration or hearing. Source:
  • employment: includes service performed by a driver who provides drive away operations when the services are being performed by an individual who is in the employ of a state or local government entity or federally recognized Indian tribe as defined in Section 3306(c)(7) of the Federal Unemployment Tax Act (Indiana Code 22-4-8-3.6
     (b) The payment of accrued vacation pay, dismissal pay, or severance pay to an individual separated from employment by an employing unit shall be allocated to the period of time for which such payment is made immediately following the date of separation, and an individual receiving such payments shall not be deemed unemployed with respect to a week during which such allocated deductible income equals or exceeds the weekly benefit amount of the individual’s claim.

     (c) Pay for:

(1) idle time;

(2) sick pay;

(3) traveling expenses granted to an individual by an employing unit and not fully accounted for by such individual;

(4) earnings from self-employment;

(5) awards by the National Labor Relations Board of additional pay, back pay, or for loss of employment;

(6) payments made under an agreement entered into by an employer, a union, and the National Labor Relations Board; or

(7) payments to an employee by an employing unit made pursuant to the terms and provisions of the Fair Labor Standards Act;

shall be deemed to constitute deductible income with respect to the week or weeks for which such payments are made. However, if payments made under subdivision (5) or (6) are not, by the terms of the order or agreement under which the payments are made, allocated to any designated week or weeks, then, and in such cases, such payments shall be considered as deductible income in and with respect to the week in which the same is actually paid.

     (d) Payment of vacation pay shall be deemed deductible income with respect to the week or weeks falling within such vacation period for which vacation payment is made.

Formerly: Acts 1947, c.208, s.502; Acts 1953, c.177, s.11; Acts 1967, c.310, s.8; Acts 1971, P.L.355, SEC.10. As amended by Acts 1981, P.L.209, SEC.4; P.L.20-1986, SEC.4; P.L.121-2014, SEC.9; P.L.85-2023, SEC.2; P.L.9-2024, SEC.439.

  Previous section
Next section  
 Chapter 5 Contents