Is Use It or Lose It Vacation Legal in Illinois?

By Michael Ferguson

Are you familiar with the term ‘use it or lose it’ when it comes to vacation days? If you’re an employee in Illinois, you may be wondering if this practice is legal in your state. Let’s take a closer look.

What is Use It or Lose It?

Use it or lose it is a vacation policy that requires employees to use their allotted vacation time within a certain period, usually the end of the year. If they fail to use their vacation time within this period, they forfeit the unused time and do not receive any compensation for it.

Is Use It or Lose It Legal in Illinois?

The short answer is no. According to Illinois law, employers cannot have a use it or lose it policy. This means that employees are entitled to carry over their unused vacation time into the following year.

Illinois Compiled Statutes 820 ILCS 115/5 states that “An employer’s personnel policy or employer contract shall not provide for forfeiture of earned vacation time upon separation from employment.”

This means that even if an employee leaves the company, they are entitled to receive compensation for any unused vacation time they have accrued.

What Happens if Your Employer Violates This Law?

If your employer has a use it or lose it policy, they are violating Illinois law. You have the right to file a complaint with the Illinois Department of Labor (IDOL).

The IDOL will investigate your complaint and can order your employer to pay you any unpaid wages for your unused vacation time. In addition, your employer may face penalties and fines for violating state law.

In Conclusion

As an employee in Illinois, you have the right to carry over your unused vacation time into the following year. Employers cannot have a use it or lose it policy and must compensate employees for any unused vacation time they have accrued.

Remember, if you feel that your employer is violating this law, you can file a complaint with the Illinois Department of Labor. It’s important to know your rights as an employee and to stand up for them when necessary.