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Indiana State Government Ends Hybrid Work Arrangements for Employees
Indiana’s state government has taken a decisive step in its effort to bring employees back into the office, rescinding 8,486 hybrid remote work agreements on Tuesday. This move marks the full implementation of Governor Mike Braun’s initiative to return state workers to traditional office settings. As part of this policy, employees will either work exclusively from state offices or entirely from home, with no hybrid arrangements allowed.
Indiana Secretary of Management and Budget Lisa Hershman explained that the decision was made after careful consideration of productivity and collaboration needs. “We looked at what makes sense to maximize value and productivity, and so we didn’t have a steadfast goal, but we knew that we were missing out on collaborative opportunities,” she said.
The number of active remote work agreements has been steadily decreasing since the beginning of the year. In January, there were 10,588 such agreements, which dropped to 9,293 by June 23. As of July 1, only 537 agreements remained active, according to the state personnel department. However, officials are still identifying employees who have always worked remotely or whose roles are best suited for full-time remote work under the new policy. Once these records are finalized, the number of active agreements is expected to increase by approximately 1,200 over the next few months.
Governor Braun acknowledged that some employees may not be happy with the change, but he emphasized that the transition has gone relatively smoothly. “Most, I think, have come back. You know we’ve got a low unemployment rate in the state, so everybody’s going to be able to find something else,” he said.
Impact on State Workforce
According to the Indiana Transparency Portal, the total number of state employees has decreased from 32,212 in December 2024 to 31,222 as of June 21 — a drop of nearly 1,000 workers. Hershman noted that the administration took time to plan and assess job duties, budgets, office space, parking, and technology needs before implementing the new policy.
She also highlighted that flexibility remains an important part of the process. “We were taking in a lot of input and to pull the band aid off is a very tough approach. And so that’s why we approached it a little bit in a more fluid way,” she said.
For example, the timing of the July Fourth holiday week coincided with some employee vacations, allowing the state to monitor resource usage as staff gradually returns to the office. Officials are also keeping an eye on parking in downtown Indianapolis state lots and have mentioned that shuttles have been used in the past.
Updated Remote Work Policy
State Personnel Director Matthew Brown issued updated guidance on June 29 that outlines eligibility requirements, procedures, and recommendations for limited remote work. The policy emphasizes the benefits of in-person collaboration while aiming to improve governmental efficiency and responsiveness without compromising accountability.
Some exceptions to the rule remain, particularly for certain roles. For instance, employees working in state call centers may continue to work remotely, as data shows they are more productive at home. Hershman explained that the state considered industry benchmarks and aimed to design a policy that would have the greatest impact on both employees and the public.
Key Rules for Remote Work
Under the new guidelines, remote work must be conducted within the geographical boundaries of Indiana unless traveling for official functions or authorized by the agency head and cabinet secretary. Existing hybrid work agreements that do not qualify as reasonable accommodations will be rescinded, and employees must work full-time in an assigned location unless otherwise approved.
Remote work is not intended to replace child or dependent care responsibilities. Employees approved for remote work must continue to arrange for care as they would if working from the office. Additionally, a remote work site must be safe and equipped with reliable internet access, a state-issued computer (or a personal device with IOT-approved security), and a phone line.
All remote work agreements are valid for one year and must be renewed annually in January. Employees are also responsible for securing all data and information related to their state duties.
