Illinois Laws On Severance Pay

February 16, 2023

Curious about Illinois laws on severance pay? Pietrucha Law Firm, LLC reviews, edits, drafts and negotiates severance agreements and general releases for Illinois employees.

Illinois does not have a state law that requires employers to provide severance pay to employees. However, if an employer has a policy or practice of providing severance pay, they are required to follow their policy or practice consistently and without discrimination.

In addition, Illinois has a law called the Illinois Wage Payment and Collection Act, which requires employers to pay all earned wages to an employee who is terminated within a certain period of time. This law also requires that employers pay any earned vacation time, if they have a policy or practice of providing such time.

It’s important to note that if an employer does offer severance pay to an employee, they may require the employee to sign a release of claims, waiving their right to sue the employer in exchange for the severance pay. It’s advisable to consult with an attorney before signing any agreement to ensure that your legal rights are protected.

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