Indiana Code Title 36. Local Government § 36-4-8-9

Sec. 9. (a) One (1) to three (3) days before the vacation leave period of a city officer or employee begins, the city may pay the officer or employee the amount of compensation the officer or employee will earn while on vacation leave.

(b) Compensation for services paid to a salaried city officer or employee pursuant to a fixed schedule set forth in a written contract or salary ordinance shall not be construed as having been paid in advance.  Under such an arrangement, the city shall maintain records to verify that actual work is performed for all salary paid.