House Enrolled Act 1098[1], enacted as Public Law 51-2026, replaces Indiana’s former “school to work student” provisions with a framework for specified work-based learning programs. Coverage turns on the statutory program definition and whether the student performs services for an employer—not merely on whether a placement is called an internship.
Key takeaways
- The new provisions take effect July 1, 2026.
- They cover paid or unpaid students who perform services for an employer as part of a qualifying program.
- Unpaid students cannot receive temporary total disability or temporary partial disability compensation.
- When a school, intermediary, or industry talent association connects a student with an employer, the required written agreement places responsibility for workers’ compensation insurance on the employer; an agreement with a third-party employer of record may be used to comply.
What changed in 2026?
House Enrolled Act 1098 repealed Indiana Code 22-3-2-2.5[2] and 22-3-7-2.5, the former “school to work student” provisions. Effective July 1, 2026, new Indiana Code 22-3-2-2.6[3] addresses accidental injury or death, and new Indiana Code 22-3-7-2.6[4] addresses disablement or death from occupational disease. The provisions appear within the workers’ compensation system in the 2026 Indiana Code, Title 22[5].
The threshold question is whether the student performed services for an employer as part of a program within the statute. The enrolled act expressly excludes a virtual, remote, or online program in which the student performs activities primarily outside an employer-controlled physical worksite. It also excludes an activity without ongoing work responsibilities or recurring placement with an employer, such as a career-awareness visit or field trip.
Which work-based learning programs qualify?
For these provisions, a “work based learning program” means one of four categories identified in Indiana Code 20-20-38[6].6-3:
| Program category | Statutory reference or standard | Useful document to locate |
|---|---|---|
| Apprenticeship | An apprenticeship program as defined in Indiana Code 20-43-8-0.3[7] | Program standards or apprenticeship agreement |
| Modern youth apprenticeship | A modern youth apprenticeship as defined in Indiana Code 20-51[8].4-2-9.5 | Enrollment and placement records |
| Pre-apprenticeship | A program meeting the U.S. Department of Labor’s elements of a quality pre-apprenticeship program | Program standards or approval records |
| Work-based learning course | A work-based learning course as defined in Indiana Code 20-43-8-0.7[9] | Course plan and placement records |
The Indiana Department of Workforce Development’s Office of Work-Based Learning and Apprenticeship[10] provides program information that may help identify the type of placement. The statute and legally material facts govern coverage; the student’s program records may help show what the placement involved.
How paid and unpaid placements differ
A student who performs services for an employer as part of a qualifying program is an employee to the extent provided in the new sections. For accidental injuries, the student is entitled to compensation and benefits under Indiana Code 22-3-2[11] through 22-3-6. The parallel occupational-disease section provides compensation and benefits under Indiana Code 22-3-7[12].
If the student is unpaid for the services, the student is not entitled to temporary total disability compensation or temporary partial disability compensation. That limitation does not exclude the unpaid student from every benefit. The enrolled act also specifies a $175,000 lump-sum death benefit for an unpaid student, payable upon agreement or final award to statutory dependents or, if there are no dependents, to the student’s parents.
Does age matter?
No. A student covered by the new work-based learning provisions may not recover an additional benefit otherwise payable because the student is younger than 17 under the workers’ compensation statutes’ definition of a minor.
Who is responsible for workers’ compensation insurance?
If an intermediary, industry talent association, or school connects a student with an employer for work experience in a qualifying program, Indiana Code 20-20-38[6].6-4 requires that organization and the employer to enter a written agreement under which the employer assumes responsibility for obtaining workers’ compensation insurance for a student who performs services for the employer as part of the program. The connecting organization may instead comply by entering an agreement with a third-party employer of record.
The enrolled act does not state that the intermediary may simply take the employer’s place as the party responsible for coverage, and it does not establish a default rule giving the employer exclusive control over the student’s work. Those questions should be evaluated from the governing law, the written agreements, and the facts rather than assumed from this act.
For policies entered into, amended, or renewed after June 30, 2026, an insurer’s underwriting decision or rating factor for a covered participant must be based on objective, risk-based criteria applied uniformly and without regard to the age of the student to be covered.
What should a student do after an injury?
Indiana Code 22-3-3-1[13] says that, unless the employer or its representative already has actual knowledge of the injury or death, the employee or dependents must give the employer written notice as soon as practicable. If the employer does not receive notice or acquire knowledge within 30 days, compensation is not paid for the period before notice or knowledge; a defect in notice bars compensation only to the extent the employer proves prejudice.
As a practical step, consider also alerting the school, intermediary, or program coordinator to help preserve placement records and coordinate next steps. This is an organizational suggestion, not an additional notice requirement.
Write down what happened, where it happened, the task being performed, who supervised the work, and any witnesses. The Indiana Worker’s Compensation Board[14] provides agency contact information and forms.
For more detail, read the firm’s guide to reporting an Indiana work injury and its explanation of an Application for Adjustment of Claim. The broader Fort Wayne workers’ compensation practice page explains how the firm approaches workplace-injury questions.
Documents to gather
- The written agreement involving the employer and the school, intermediary, or industry talent association
- Any agreement identifying a third-party employer of record
- The training plan, course description, or apprenticeship standards
- Enrollment and placement records
- Pay stubs, time records, or confirmation that the placement was unpaid
- The incident report and names of supervisors or witnesses
- Any claim number, carrier letter, or denial notice
These documents do not decide a claim by themselves, but they can help identify the program, services performed, employer, and insurance arrangement.
Frequently Asked Questions
Are unpaid students completely excluded from Indiana workers’ compensation?
No. A qualifying unpaid student is covered but cannot receive temporary total disability or temporary partial disability compensation. The act does not exclude that student from every benefit.
Does every internship qualify?
No. The student must perform services for an employer as part of one of the four statutory program categories. The law also excludes primarily off-site virtual, remote, or online programs and one-time activities such as career-awareness visits or field trips.
What should the insurance agreement identify?
The required agreement must place responsibility for obtaining workers’ compensation insurance on the employer. A school, intermediary, or industry talent association may instead comply through an agreement with a third-party employer of record.
Does HB 1098 decide who controls the student’s daily work?
No. The enrolled act does not create a default rule granting the employer exclusive rights to direct, supervise, train, and control the student. The applicable agreements, other law, and actual working relationship may matter.
What practical steps can a student take if a claim is denied?
Keep the denial letter, placement agreements, program records, medical records, and communications together. Consider obtaining advice about the specific denial. The firm’s guide on what to do after an Indiana workers’ compensation denial discusses practical next steps.
Primary sources
- House Enrolled Act 1098 (final enrolled act)[1] — Indiana General Assembly; accessed August 18, 2026.
- 2026 Indiana Code, Title 22[5] — Indiana General Assembly; accessed August 18, 2026.
- Indiana Worker’s Compensation Board[14] — official forms and agency information; accessed August 18, 2026.
If you were injured during a school-linked work placement in Fort Wayne or elsewhere in Indiana and are unsure which rules apply, Delventhal Law Office can review the program documents and explain your options during a free consultation.
This article provides general information, not legal advice.
Sources
- House Enrolled Act 1098 (iga.in.gov) ↩
- Indiana Code 22-3-2-2.5 (iga.in.gov) ↩
- Indiana Code 22-3-2-2.6 (iga.in.gov) ↩
- Indiana Code 22-3-7-2.6 (iga.in.gov) ↩
- 2026 Indiana Code, Title 22 (iga.in.gov) ↩
- Indiana Code 20-20-38 (iga.in.gov) ↩
- Indiana Code 20-43-8-0.3 (iga.in.gov) ↩
- Indiana Code 20-51 (iga.in.gov) ↩
- Indiana Code 20-43-8-0.7 (iga.in.gov) ↩
- Office of Work-Based Learning and Apprenticeship (dwdportal.dwd.in.gov) ↩
- Indiana Code 22-3-2 (iga.in.gov) ↩
- Indiana Code 22-3-7 (iga.in.gov) ↩
- Indiana Code 22-3-3-1 (iga.in.gov) ↩
- Indiana Worker’s Compensation Board (in.gov) ↩
