Human Resource Blog

Term without 2 weeks notice - Illinois

Can we have a policy where if an employee doesn’t give us 2 weeks notice, we can reduce their pay to minimum wage (currently $10/hr workers) and not pay out any earned but unused PTO time? We are in Illinois.

No, such a policy would be illegal in Illinois and many other states. In Illinois, it is illegal on two counts.

State law requires that an employer pay out earned but unused vacation time to workers. If the company grants PTO instead, state law requires that the employer pay out the part of PTO that corresponds to vacation time. If the employer does not specify the amount of PTO that corresponds to vacation time, then they must pay the entire balance. Any company policy that eliminates this right is unlawful in Illinois.

Also under Illinois law, an employer can change a employees wages — but the change cannot be retroactive. If John gives notice today, you can inform him today that beginning tomorrow he will be paid the minimum wage. But if John gives one weeks notice — or quits without notice — today, you cannot inform him that for the past 2 weeks he has been working for minimum wages.

(Please also note that if John refuses to work for the lower wages, he will qualify for unemployment. He has quit because you drastically reduced his wages.)

We have noted a number of questions on this topic in the past few weeks. Frankly, its poor management practice to reduce an employees wages as retaliation against the employee for quitting. No job is forever. Employees do seek other opportunities, just as emploeyers sometimes let an employee go. A wise, mature employer plans for that eventuallity and handles it graciously.