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Paying Terminated Employees in Illinois

Filed under Managing the Workplace. Fact checked on May 30, 2012.

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Employers in Illinois must comply with these state requirements when making the final wage payment to terminated employees.

In Illinois, upon termination, payment must be made to the employee no later than the next regular payday or, if possible, immediately.

If the employee requests in writing that final compensation be by check and mailed, the employer must comply.

Unless otherwise provided in a collective bargaining agreement, when a contract of employment or employment policy provides for paid vacations and an employee resigns or is terminated from employment without having taken all vacation time earned, the monetary equivalent of all earned vacation must be paid to the employee as part of final compensation at the final rate of pay.

An employment contract or employment policy may not provide for the forfeiture of earned vacation time upon separation.

Workers on strike or laid off must be paid no later than the next regular payday.

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