Illinois Paid Time Off Policy - PTO
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How to fill out Paid Time Off Policy - PTO?
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FAQ
No. An employer may utilize a use it or lose it vacation policy as long as it is in accordance with 56 Ill.
Vacation time is not required by law. But if vacation pay is earned, it must be given to the employee. If the employee leaves, they must be paid for their unused time. The state law that applies is the Illinois Wage Payment and Collection Act.
Employees can carry over one-half of their unused accrued paid sick leave up to 20 hours at the end of each 12-month accrual period.
Illinois. Illinois does not prohibit use-it-or-lose-it policies in the workplace. However, they do regulate it. Employers can require employees to use vacation time by a certain date as long as they give them a reasonable amount of time.
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 in accordance with such individual employment contract or policy.
If you have a policy, employment contract or a practice of doing so, you're required to pay accrued PTO to every employee who leaves the company. That means, you can't arbitrarily pay banked PTO to salaried employees and not to hourly employees; the practice and policy must equally apply to all employees.
In Illinois, there is no automatic right to vacation time. However, if you have an employment contract or your employer has a vacation policy, either written or verbal, then you should be paid all the vacation time that you have earned up until the point that you are fired or leave your job.
