Illinois: unused vacation when employment ends

Earned vacation must be paid as part of final compensation when an employee resigns or is terminated. A written policy cannot force a forfeiture of vacation already earned.

Each answer traces to the lines quoted below.

What the source says

• The employer is required to pay the monetary equivalent of all earned vacation to an employee who resigns or is terminated without having taken all vacation time earned.
• An employer cannot effectuate a forfeiture of earned vacation by a written employment policy or practice of the employer.
• A use-it-or-lose-it policy is permitted only where the employer gives the employee a reasonable opportunity to take the vacation and can demonstrate that the employee had notice of the policy.
• Final compensation must be paid in full at the time of separation if possible, and in no event later than the next regularly scheduled payday for that employee.
• An employee is not entitled to severance pay, sick pay or holiday pay upon separation unless the employer promised it in an employment contract or other agreement — vacation is treated differently from those three.

Sources

What 80 hours a year looks like on a biweekly schedule

The bar below is not specific to Illinois law — it shows the mechanic every schedule shares. Eighty hours a year across 26 paychecks is 3.08 hours a period. With no ceiling the balance climbs for the whole year.

Closing balance after a year: 80.08 hours.

Does Illinois require my employer to pay out unused vacation?

Earned vacation must be paid as part of final compensation when an employee resigns or is terminated. A written policy cannot force a forfeiture of vacation already earned.

Can a policy in Illinois erase vacation I already earned?

On use-it-or-lose-it, the source read for this page puts Illinois at: Allowed with conditions. The quoted lines on this page are the basis for that, and anything the source did not settle is listed as not established.

Where did these lines come from?

From Vacation FAQ — Illinois Department of Labor; Wage Payment and Collection Act FAQ — Illinois Department of Labor. Each one was opened and read rather than summarised from another site, and the links are on this page.

Is this legal advice?

No. This page quotes public sources so you can read them yourself. It is not legal advice and it does not replace your employer’s written policy or a lawyer in your jurisdiction.