However, the employee may enter into an agreement with their employer. Holiday Pay. Vacation.Illinois became the third state to mandate employers provide paid leave "for any reason". The new leave policy begins on January 1, 2024. 1 Hour of Paid Leave for every 35 hours worked (up to 40 hours (5 days) in a 12-month period). SECTION II-COVERED EMPLOYEES. In Illinois, there is no state law requiring private employers to provide paid or unpaid vacation leave to their employees. Is holiday pay mandatory for Illinois state holidays in 2025? Employers are not required to pay out earned vacation unless the employee leaves the company. Vacation time, once earned is vested and generally cannot be used to round up hours on your time sheets.