(a) Regarding an individual's most recent separation from employment before filing an initial or additional claim for benefits, an individual who voluntarily left the employment without good cause in connection with the work or was discharged from the employment for just cause is ineligible for waiting period or benefit rights for the week in which the disqualifying separation occurred and until:

1. (1) the individual has earned remuneration in employment in at least eight (8) weeks; and

2. (2) the remuneration earned equals or exceeds the product of the weekly benefit amount multiplied by eight (8).

   If the qualification amount has not been earned at the expiration of an individual's benefit period, the unearned amount shall be carried forward to an extended benefit period or to the benefit period of a subsequent claim.

(b) When it has been determined that an individual has been separated from employment under disqualifying conditions as outlined in this section, the maximum benefit amount of the individual's current claim, as initially determined, shall be reduced by an amount determined as follows:

1. (1) For the first separation from employment under disqualifying conditions, the maximum benefit amount of the individual's current claim is equal to the result of:

   1. (A) the maximum benefit amount of the individual's current claim, as initially determined; multiplied by

   2. (B) seventy-five percent (75%);

      rounded (if not already a multiple of one dollar ($1)) to the next higher dollar.

2. (2) For the second separation from employment under disqualifying conditions, the maximum benefit amount of the individual's current claim is equal to the result of:

   1. (A) the maximum benefit amount of the individual's current claim determined under subdivision (1); multiplied by

   2. (B) eighty-five percent (85%);

      rounded (if not already a multiple of one dollar ($1)) to the next higher dollar.

3. (3) For the third and any subsequent separation from employment under disqualifying conditions, the maximum benefit amount of the individual's current claim is equal to the result of:

   1. (A) the maximum benefit amount of the individual's current claim determined under subdivision (2); multiplied by

   2. (B) ninety percent (90%);

      rounded (if not already a multiple of one dollar ($1)) to the next higher dollar.

(c) The disqualifications provided in this section shall be subject to the following modifications:

1. (1) An individual shall not be subject to disqualification because of separation from the individual's employment if:

   1. (A) the individual left to accept with another employer previously secured permanent full-time work which offered reasonable expectation of continued covered employment and betterment of wages or working conditions and thereafter was employed on said job;
   2. (B) having been simultaneously employed by two (2) employers, the individual leaves one (1) such employer voluntarily without good cause in connection with the work but remains in employment with the second employer with a reasonable expectation of continued employment; or
   3. (C) the individual left to accept recall made by a base period employer.
2. (2) An individual whose unemployment is the result of medically substantiated physical disability and who is involuntarily unemployed after having made reasonable efforts to maintain the employment relationship shall not be subject to disqualification under this section for such separation.
3. (3) An individual who left work to enter the armed forces of the United States shall not be subject to disqualification under this section for such leaving of work.
4. (4) An individual whose employment is terminated under the compulsory retirement provision of a collective bargaining agreement to which the employer is a party, or under any other plan, system, or program, public or private, providing for compulsory retirement and who is otherwise eligible shall not be deemed to have left the individual's work voluntarily without good cause in connection with the work. However, if such individual subsequently becomes reemployed and thereafter voluntarily leaves work without good cause in connection with the work, the individual shall be deemed ineligible as outlined in this section.
5. (5) An otherwise eligible individual shall not be denied benefits for any week because the individual is in training approved under Section 236(a)(1) of the Trade Act of 1974, nor shall the individual be denied benefits by reason of leaving work to enter such training, provided the work left is not suitable employment, or because of the application to any week in training of provisions in this law (or any applicable federal unemployment compensation law), relating to availability for work, active search for work, or refusal to accept work. For purposes of this subdivision, the term "suitable employment" means with respect to an individual, work of a substantially equal or higher skill level than the individual's past adversely affected employment (as defined for purposes of the Trade Act of 1974), and wages for such work at not less than eighty percent (80%) of the individual's average weekly wage as determined for the purposes of the Trade Act of 1974.

6. (6) An individual is not subject to disqualification because of separation from the individual's employment if:

   1. (A) the employment was outside the individual's labor market;
   2. (B) the individual left to accept previously secured full-time work with an employer in the individual's labor market; and
   3. (C) the individual actually became employed with the employer in the individual's labor market.
7. (7) An individual who, but for the voluntary separation to move to another labor market to join a spouse who had moved to that labor market, shall not be disqualified for that voluntary separation, if the individual is otherwise eligible for benefits. Benefits paid to the spouse whose eligibility is established under this subdivision shall not be charged against the employer from whom the spouse voluntarily separated.
8. (8) An individual shall not be subject to disqualification if the individual voluntarily left employment or was discharged due to circumstances directly caused by domestic or family violence (as defined in IC 31-9-2.1-84 ). An individual who may be entitled to benefits based on this modification may apply to the office of the attorney general under IC 5-26.5 to have an address designated by the office of the attorney general to serve as the individual's address for purposes of this article.

9. (9) An individual shall not be subject to disqualification if the individual:

   1. (A) has requested an exemption from an employer's COVID-19 immunization requirement;
   2. (B) has complied with the requirements set forth in IC 22-5-4.6 ; and

   3. (C) was discharged from employment for failing or refusing to receive an immunization against COVID-19.

      As used in this subsection, "labor market" means the area surrounding an individual's permanent residence, outside which the individual cannot reasonably commute on a daily basis. In determining whether an individual can reasonably commute under this subdivision, the department shall consider the nature of the individual's job.

(d) "Discharge for just cause" as used in this section is defined to include but not be limited to:

1. (1) separation initiated by an employer for falsification of an employment application to obtain employment through subterfuge;
2. (2) knowing violation of a reasonable and uniformly enforced rule of an employer, including a rule regarding attendance;
3. (3) if an employer does not have a rule regarding attendance, an individual's unsatisfactory attendance, if good cause for absences or tardiness is not established;
4. (4) damaging the employer's property through willful and wanton misconduct;
5. (5) refusing to obey instructions;
6. (6) conduct endangering safety of self or coworkers;
7. (7) incarceration in jail following conviction of a misdemeanor or felony by a court of competent jurisdiction; or
8. (8) any breach of duty in connection with work which is reasonably owed an employer by an employee.

(e) For purposes of subsection (d), the following apply:

1. (1) An employer rule will be found to be reasonable if it:

   1. (A) is lawful;
   2. (B) is related to the employer's business operations;
   3. (C) is intended by the employer to broadly apply to classes, categories, or all employees; and
   4. (D) does not create a harsh or unconscionable requirement for employees.

2. (2) In order to qualify as a breach of duty for unemployment insurance purposes, the duty must be:

   1. (A) reasonably connected to the work;
   2. (B) reasonably owed to the employer by the employee; and
   3. (C) of a nature that a reasonable employee would recognize as a violation of the duty and would understand that a violation of the duty would subject the individual to discharge.

3. (3) A breach of duty reasonably owed to an employer includes conduct that establishes that the individual:

   1. (A) damaged the employer's trust and confidence in the individual's ability to effectively perform the job;
   2. (B) willfully failed to meet the employer's reasonable expectation;
   3. (C) chose a course of action that the individual knew, or should have known, would negatively impact the employer's financial interests;
   4. (D) demonstrated an intentional or substantial disregard for the employer's interests;
   5. (E) intentionally or knowingly injured, or attempted to injure, the employer's financial interests;
   6. (F) intentionally chose a course of action that set the individual's interests against the employer's interests to the detriment of the employer;
   7. (G) showed carelessness or negligence to such a degree, or with such recurrence, as to cause damage to the employer's interests; or
   8. (H) performed some volitional act or exercised some control over the circumstances resulting in discharge from employment.

(f) To verify that domestic or family violence has occurred, an individual who applies for benefits under subsection (c)(8) shall provide one (1) of the following:

1. (1) A report of a law enforcement agency (as defined in IC 10-13-3-10 ).
2. (2) A protection order issued under IC 34-26-5 .
3. (3) A foreign protection order (as defined in IC 34-6-2.1-76 ).
4. (4) An affidavit from a domestic violence service provider verifying services provided to the individual by the domestic violence service provider.

(h) A voluntary leave of employment due to excessive discipline, or inappropriate comments or conduct by managers or coworkers, does not constitute good cause in connection with the work unless it is established that an individual in the same or similar circumstances would reasonably believe that the:

1. (1) conduct was severe and pervasive;

2. (2) conduct:

   1. (A) was motivated by the individual's:

(3) the individual reported the conduct pursuant to the employer's procedures, if any, but no employer action was taken within a reasonable period of time.

1. (i) An individual who leaves employment in anticipation of an imminent discharge does so with good cause if it is established that the:
2. (1) discharge was imminent; and
3. (2) imminent discharge would not have been for just cause.

4. (j) If an employer gives an employee the opportunity to submit a resignation from employment, rather than be discharged, and the employee resigns, this is a quit in lieu of discharge, and the separation will be analyzed under the discharge for just cause criteria, as the employer is the moving party in the separation.

   Formerly: Acts 1947, c.208, s.1501; Acts 1957, c.261, s.1; Acts 1965, c.190, s.9; Acts 1967, c.310, s.19; Acts 1971, P.L.355, SEC.35; Acts 1972, P.L.174, SEC.1; Acts 1974, P.L.110, SEC.4. As amended by Acts 1977, P.L.262, SEC.25; Acts 1980, P.L.158, SEC.5; Acts 1982, P.L.95, SEC.4; P.L.20-1986, SEC.9; P.L.80-1990, SEC.13; P.L.21-1995, SEC.83; P.L.166-1996, SEC.3; P.L.290-2001, SEC.7; P.L.189-2003, SEC.3; P.L.97-2004, SEC.82; P.L.175-2009, SEC.23; P.L.121-2014, SEC.12; P.L.183-2015, SEC.7; P.L.224-2017, SEC.10; P.L.1-2022, SEC.8; P.L.117-2023, SEC.8; P.L.186-2025, SEC.121; P.L.200-2025, SEC.18; P.L.121-2026, SEC.38; P.L.145-2026, SEC.132.