Despite Centerville-Abington Community Schools Superintendent Mike McCoy believing Wayne County is among Indiana’s best-prepared counties for the new work-based learning program, he said a significant issue has arisen that’s keeping many students out of workplaces.

HEA 1098 requires employers purchase workers’ compensation insurance for unpaid interns. McCoy said about 80% of CACS interns are unpaid. Many of the businesses agreeing to accept CACS interns are small employers who most likely aren’t going to provide that insurance, McCoy said. That means schools can’t send interns without workers’ compensation coverage to businesses until the issue is resolved.

Wayne County Area Chamber of Commerce is actively working with schools, employers, insurance providers and state partners to address the unexpected challenge, said Shawntel Baker, the chamber’s director of employer engagement.

The law says businesses can’t discriminate against taking interns who are younger than 18 because some employers were initially hesitant to bring in minors, McCoy said. He told CACS’ board at its Aug. 19 meeting that he thinks Indiana General Assembly made a last-minute change in the newly enacted law for the right reason, but now there are unintended consequences for students, schools and businesses.

Baker said Wayne County’s partners have been working to better understand the requirements and identify options for employers. They’re communicating with local insurance agents and employers to determine whether unpaid student interns can be covered under an employer’s existing workers’ compensation policy.

“We have received some encouraging feedback from the insurance community that coverage may be available when certain requirements are followed,” Baker said.

They are beginning to see some employers and providers moving forward with the program under their current policies. 

Currently, the chamber encourages business owners who want to host interns to confer with their providers and ensure proper coverage is in place. Chamber staff are not insurance or legal experts, Baker said, so they encourage business owners to do their own due diligence.

Chamber and school leaders have been contacting local legislators, Indiana Department of Education and Indiana’s chamber to seek clarification and discuss potential solutions. Baker said conversations are also helping them identify anything that might need addressing during the next legislative session.

“We are hopeful these ongoing discussions will help lead to a workable solution that keeps meaningful work-based learning opportunities available to students and helps them to attain the new diploma seals,” Baker said.

Centerville’s affected students are currently attending school resource time instead of going to their internships. In addition to impacting students’ plans, fewer student hours spent in workplaces likely will affect school funding.

Schools receive additional state funds for students earning at least 75 work-based hours through the program.

Even if the issue is resolved soon, teens might not reach their anticipated hours if evening or weekend catch-up opportunities aren’t available.

During the first semester of the 2025-26 school year, CACS had a couple of weather delays that prevented many students from reaching the 75-hour mark, which lowered the expected school funding, McCoy said.

Students earning an Honors Enrollment Seal can earn an Honors Plus seal if they complete at least 75 hours of work-based learning.

To earn an Honors Employment Seal, students must complete 150 hours of work-based learning before graduation; the Honors Plus Seal requires an additional 650 hours of work-based learning.

Current state graduation requirements can be viewed at wwn.to/diplomacredits.

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A version of this article appeared in the August 26 2026 print edition of the Western Wayne News.

Millicent Martin Emery is a reporter and editor for the Western Wayne News.