Illinois treats vacation as earned pay, which changes how you write PTO terms. Earned, unused vacation generally must be paid out at separation, so use-it-or-lose-it language does not belong in an Illinois offer letter. Employers with 15 or more employees must also post pay scales and benefits, salary-history questions are banned, and most employees accrue paid leave usable for any reason.
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Since January 1, 2025, employers with 15 or more employees must include the pay scale and a general description of benefits in job postings, including for remote roles reporting to Illinois, and must announce promotion opportunities to current employees within 14 days of posting externally.
Illinois Equal Pay Act of 2003, 820 ILCS 112/10(b-25)
Employers may not ask applicants or their former employers about wage or salary history or use it to screen candidates or set pay. You may ask about the candidate's pay and benefit expectations.
Illinois Equal Pay Act of 2003, 820 ILCS 112/10(b-5)
Final compensation is due at separation if possible, and no later than the next regularly scheduled payday. Earned, unused vacation generally must be paid out, so offer-letter PTO terms cannot include use-it-or-lose-it forfeiture. Tell new hires their pay rate and payday in writing at hire.
Illinois Wage Payment and Collection Act, 820 ILCS 115/5 and 115/10
Since January 1, 2024, most employees accrue at least one hour of paid leave per 40 hours worked, up to 40 hours a year, usable for any reason. Chicago and Cook County have their own paid leave rules that apply instead within their borders.
Paid Leave for All Workers Act, 820 ILCS 192; Chicago Paid Leave and Paid Sick and Safe Leave Ordinance
Last updated 2026-10-05
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