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Illinois PTO laws - vacation payout and accrual rights
What Illinois law says about paid time off payout and accrual
Illinois does not require vacation payout by law
Employer policy enforced through Wage Payment Act
Illinois PTO law overview
Illinois does not require vacation payout by law but strongly enforces written employer policies through the Wage Payment and Collection Act. Earned vacation may be treated as wages if the employer's policy so provides.
Illinois courts have found that accrued vacation can constitute wages under the WPCL if the employer's written policy treats it as such. Illinois employers must clearly define their PTO payout policies.
Governing law
Illinois PTO and vacation law is governed by Illinois Wage Payment and Collection Act 820 ILCS 115 (820 ILCS 115/2). The official authority for Illinois wage and hour enforcement including PTO disputes is the Illinois Department of Labor.
Data source: 820 ILCS 115/2. Last verified: 2026. PTO laws can change. Consult an employment attorney for advice specific to your Illinois situation.