Restaurant owners say the exemption plays favorites and could push customers away from businesses that are not exempt.
Bars and taverns would be exempt from the smoking ban for the next 18 months under this version of the bill.
Medical experts say studies show an Indianapolis smoking ban is likely to have an effect for both smokers and non-smokers.
The Indiana Senate has never passed a smoking ban out of committee. Politicians say this year's bill has bipartisan support.
The bill originally exempted the gaming floors of gambling facilities, cigar and hookah bars, tobacco shops and social clubs.
More than four dozen amendments to the House version of right to work could be debated Monday.
A statewide smoking ban is headed for a vote in the House next week.
Bar owners say a smoking ban targets their businesses and could hurt their profits.
Only three entities would be exempt from the smoking ban: gaming floors, cigar or hookah bars.
The new ordinance would remove exemptions for bars and restaurants and allow them for private clubs.