Illinois must pay out your unused PTO

Yes. Accrued, unused PTO counts as earned wages in Illinois, so it must be paid when you leave, whatever the company policy says.

Data updated September 26, 2026

Key facts for Illinois

PTO payout when you leave: Required by law
Legal authority: 820 ILCS 115/5 (Illinois Wage Payment and Collection Act)
Final paycheck if you quit: Next regular payday
Final paycheck if fired or laid off: Next regular payday
Late final pay: State penalty applies details
Paid sick leave: Required by state law
Minimum wage: $15.00/hr
Overtime: 1.5x after 40 hrs/week

Source

Rule: 820 ILCS 115/5 (Illinois Wage Payment and Collection Act)
Published by: labor.illinois.gov
Last updated: September 26, 2026

How we source and check data

Work out what you are owed

Salary and unused days in, gross payout and an after-tax estimate out.

Calculate my Illinois PTO payout

Illinois minimum wage All states

Does Illinois require PTO payout?

Yes, in general. Illinois treats earned, unused vacation or PTO as wages, so your employer generally must pay it out when you leave, even if the company policy says otherwise. Some states set limits, such as employer size or length of service, so check the details on this page. The controlling authority is 820 ILCS 115/5 (Illinois Wage Payment and Collection Act).

How Illinois treats accrued PTO

Illinois treats earned vacation as final compensation that must be paid at separation, no later than the next regular payday. Policies that forfeit earned vacation at separation are not enforceable. Leave provided only under the Paid Leave for All Workers Act (820 ILCS 192) does not have to be paid out, but if it is combined with vacation in one PTO bank, the whole balance must be paid.

Authority: 820 ILCS 115/5 (Illinois Wage Payment and Collection Act)

Late payment penalty in Illinois

Damages of 5% of the underpayment for each month it remains unpaid, plus costs and attorney fees.

Statute: 820 ILCS 115/5; 820 ILCS 115/14

Your other Illinois entitlements

PTO payout is one line on your final payslip. These are the other Illinois rules that change what that payslip should total.

Paid sick leave: Illinois mandates paid sick leave under the Paid Leave for All Workers Act (PLAWA), accruing at 1 hour per 40 hours worked, with up to 40 hours usable per year. PLAWA leave kept separate from vacation does not have to be paid out. If your employer uses a vacation or general PTO bank to meet PLAWA, unused time is likely owed at separation under the Wage Payment and Collection Act. Check your sick leave balance .
Minimum wage: The Illinois minimum wage is $15.00/hr , above the federal $7.25 (effective January 1, 2025). Your PTO payout is paid at your own rate of pay, not the minimum, but the minimum is the floor below which no hour may be paid. Illinois minimum wage details .
Overtime: Illinois pays overtime at 1.5x after 40 hours in a week . Unpaid overtime is often owed alongside unpaid PTO, so it is worth checking both before you sign anything. Calculate your overtime .

Sources for this page

Illinois labour department — PTO and wage payment labor.illinois.gov
Illinois final paycheck rules — 820 ILCS 115/5; 820 ILCS 115/14 labor.illinois.gov
US Department of Labor — state wage payment laws dol.gov

Common questions

Does Illinois require employers to pay out unused PTO?

When must my final paycheck arrive in Illinois if I quit?

If you resign in Illinois, the deadline is: Next regular payday. If you are fired or laid off instead, the deadline is: Next regular payday. Any PTO your employer owes you should be included in that payment rather than sent separately later.

What happens if my Illinois employer pays late?

Illinois attaches a penalty to late final wages: Damages of 5% of the underpayment for each month it remains unpaid, plus costs and attorney fees. That penalty is separate from the wages themselves, so a late payment can end up costing an employer far more than the original amount. Keep a record of your separation date and the date you were actually paid.

Can Illinois employers use "use it or lose it" PTO policies?

Not to strip earned time when you leave. Because Illinois treats earned PTO as wages, an employer may cap how much you accrue going forward, and a policy that forfeits earned time at separation is generally unenforceable. Whether a year-end reset is allowed varies, so check the details on this page.

Is a PTO payout taxed differently in Illinois?

No. A PTO payout is ordinary wages, so it is subject to federal income tax withholding, Social Security at 6.2%, Medicare at 1.45%, and any Illinois state income tax. Employers often withhold federal tax at the 22% supplemental wage rate on a lump sum, which can make the payout look more heavily taxed than your normal paycheck; it evens out when you file.

PTO payout in other states

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