vacation pay

What is the name of your state? il
do we have to pay vacation pay as we have done during the first 10/12 years we've been in business?we are a small business, 2 owner and 5 employees. we do not have an employee manual. due to a downturn in business we expect to terminate several employees. we did not pay vacation pay last year and have not done so yet this year either.

Illinois state law requires an employer to pay earned but unused vacation pay at the time of termination IF the employer has a policy of providing paid vacation time.

When you say you "did not pay vacation pay" last year or this year, do you mean to separating employees? Or do you mean that when employees took vacation time off work, it was unpaid for this year and last year?

If it's the latter, I guess you could argue that the company had suspended or cancelled it's paid vacation benefit and avoid paying unused vacation at the time of termination. If someone makes a stink with the IL DOL, I have no idea which way they'd rule however. You can always call them and ask.