Human Resource Blog

Illinois Vacation Payout

	Benefits
Total Compensation Summary Performance Improvement Plan Performance Appraisal and Review Employee Payroll Status/Change Form Employee Change Form

	HR Management
Confidential Employee Folder Confidential Employee Medical Folder Job File Worksheet Folder Daily EEO Applicant Flow Log Workplace Information Sheets Request to Inspect Personnel Files

After 1 year an employee was given 1 week vacation and used it during his second year. He left the company after 7 months in the second year. Would the company be required to pay him 1 week of the accrued vacation time?

The company vacation policy states:
1 year = 1 week vacation
2 years = 2 weeks vacation

All accrued benefits are fully earned as of January 1.

No, the Illinois company would not be required to pay this worker for any unused vacation time. This employee had one week of vacation time after one year, and used it. He quit before he had earned any additional vacation time.

The policy clearly states that the employee earns 2 weeks of vacation after 2 years — not 1 week after 18 months and an additional week after 24 months. That means if the employee quits one day shy of the 2-year mark, he does not earn any vacation time for the last year. The policy further states that vacation time is fully earned as of January 1 — meaning if the employee quit on December 31, he would have no vacation time.