A human resource of a company or organization is generally an employee, and the department that communicates with employees and manages employee-related issues—including job applications, job interviews, drug tests, employment offers, wages, benefits, paid time off (PTO), unpaid leave, employee reviews, termination of employment, and unemployment insurance claims—is often known as the human resources department, or human resources, or simply HR. An employer’s human resources department may consist of one person in a smaller organization or many persons in a larger organization, and is often headed by a human resources manager or human resources director.

In Indiana, as in other states, the human resources (HR) department plays a crucial role in managing the employer-employee relationship. This includes overseeing the hiring process, which encompasses job postings, interviews, and drug tests. HR is also responsible for making employment offers and handling compensation matters such as wages and benefits. Additionally, HR manages paid time off (PTO), unpaid leave, and employee performance reviews. When it comes to termination of employment, HR ensures that the process complies with applicable laws and handles unemployment insurance claims. The size and structure of an HR department can vary greatly depending on the size of the organization, with smaller companies sometimes having only one person overseeing HR functions, while larger organizations may have a team led by an HR manager or director. Indiana state statutes and federal laws, including the Fair Labor Standards Act (FLSA), the Family and Medical Leave Act (FMLA), and the Americans with Disabilities Act (ADA), provide a framework within which HR departments operate to ensure compliance with employment regulations.