Business & Work

Generally, most workers in Illinois are “at-will” employees. This means that employment decisions like hiring, firing, and lay offs are at the will of the company. But there are many exceptions to this general rule. Employees have certain rights that determine whether a company acted properly.  These rights may come from: 

• Having an employment contract,
• Being a unionized worker under a collective bargaining agreement,
• Local, state, and federal laws that prohibit discrimination in the workplace,
• Local, state, and federal laws that prohibit retaliation in the workplace apply,
• Termination rules in the company handbook or other written policies, and
• Having job protection under laws like Family Medical Leave Act (FMLA) or the Worker Adjustment and Retraining Notification (WARN) Act.

As long as the employer doesn't violate these rights, an at-will employee can be terminated, or fired, for no reason at all.

What if I think I was discriminated against when I was laid off?

It is a violation of local, state, and federal law for an employer to lay off or adversely treat a worker when the decision was based on a prohibited discriminatory reason. Learn more about the prohibited categories of discrimination and where to report workplace discrimination. 

Am I entitled to any severance pay or unemployment benefits?

To qualify for unemployment benefits, you must be involuntarily unemployed. That means:

• You weren't fired for "misconduct," and
• You didn't quit unless you had a good reason. 

Unemployment benefits come from the Illinois Department of Employment Security (IDES). This is funded by insurance coverage employers pay for through unemployment taxes. To get unemployment benefits, you must file a claim with IDES. You can file a claim online and learn more about unemployment insurance benefits on the IDES website. 

Employees are usually not entitled to severance pay. Generally, you’re not entitled to extra pay beyond the hours you work. However, an agreement such as an individual employment contract, a union collective bargaining agreement, or a company handbook may have severance provisions that the company has to follow. 

Also, many times a company will offer an employee a severance agreement before they are fired. Usually, the company wants to pay a severance in exchange for you agreeing not to take legal action. If you are offered a severance agreement (also called separation agreement), you should read it carefully. Before signing, consider any rights you may be giving up. You also may be able to negotiate better terms with the company.

Final payment

Your final paycheck is supposed to be paid “in full, at the time of separation, if possible.” Otherwise, the very latest it can be paid is “the next regularly scheduled payday.” If you ask your employer to mail you a check, they must. Your employer cannot make you give up any rights when you accept and sign your final paycheck.

The company must pay you for any unpaid compensation owed to you, such as wages, earned bonuses/commissions, or other unpaid money that you earned. You should also be paid for expenses that are reimbursable under the company's expense reimbursement policy. 

Hourly employees should receive payment for all hours worked, including overtime earned. Salaried employees should receive their full weekly salary for any week where they performed any work without regard to the number of hours/days worked. So, if a salaried employee is laid off during the first day of the work week, they will get full salary for that week. If your employer does not follow these rules, you can file a claim with the Illinois Department of Labor. 

Accrued vacation and paid time off

The Illinois Paid Leave for All Workers Act (PLAWA) allows workers to earn up to 5 days of paid leave a year. You can use the leave for any reason, and employers cannot require you to say why you are taking the time off. Generally, this type of paid leave, if accrued, does not need to be paid out when your employment ends unless it is part of a vacation bank or general paid time off or PTO bank.  

If your employer has a policy that gives you a vacation bank or general PTO bank, they may be required to pay “the monetary equivalent” for all accumulated and unused vacation time when your job ends. This should be included in your final paycheck. You can file a claim about your final paycheck under the Illinois Wage Payment and Collection Act with the Illinois Department of Labor. 

Continuing healthcare coverage

The Consolidated Omnibus Budget Reconciliation Act, also known as COBRA, gives workers the right to continued healthcare coverage. This coverage is allowed for limited time periods under certain circumstances, including: 

• Involuntary job loss, 
• Reduction in the hours worked, 
• Transition between jobs, 
• Death, 
• Divorce, or 
• Other life events. 

If your employer has 20 or more workers, they must offer COBRA coverage to you and your family. Your coverage can continue under the company plan for up to 18 months. You must begin coverage within about 60 days, and you should expect to pay the full cost of the group plan, plus a 2% fee. Your employer is required to tell you about this replacement coverage option. If the company fails to fulfill these COBRA obligations, it may have to pay penalties in an enforcement action.

What's the difference between a layoff and a furlough?

In non-unionized workforces, the terms “layoff” and “furlough” are not functionally different; both cases have the same results: you aren’t working, so you won’t be paid. But some companies use the terms differently. Many employers use “layoff” when an employee won’t be returning to work. On the other hand, “furlough” is used when the employment relationship was not ended, and the employee will return to work within a short time.

Under many employment laws, employees on furlough have the same rights as a laid off employee. A furloughed employee should receive:

• Unemployment benefits,
• A final paycheck that includes all earned compensation for their hours worked,
• Salaried employees receive their full weekly salary for the last work week,
• Final paychecks should be given the final workday or on the next regular payday, at the latest, and 
• COBRA notices on how to continue healthcare coverage. 

Special rights for union workers

If you are represented by a union and working under a collective bargaining agreement (CBA), you may have special rights in a layoff, such as seniority rights, severance, and special notice provisions. Also, the "at-will" employment rule usually does not apply when you are covered by a CBA. Generally, under a CBA the employer must have "just cause" to fire you. This all depends on the specific language in the CBA. You should review your CBA and talk with your union rep about your questions. If you feel you were improperly laid off or fired, you may be required to follow a specific grievance procedure. 

Must my company give advance notice before a mass layoff, plant closing, or relocation?

Certain employers are required to give advance warning about layoffs. In Illinois, both the federal and state Worker Adjustment and Retraining Notification Acts (WARN Acts) apply. Both WARN Acts requires certain employers to notify workers 60 days in advance of “plant closings” or “mass layoffs.”

The Illinois WARN Act covers employers with at least 75 full-time employees. For the Federal WARN, it’s 100.

The Illinois WARN Act requires notice if at least 25 full-time employees are laid off, and that layoff amounts to at least one-third of the full-time employees at a site. It’s 50 for the Federal version.

A layoff of 250 full-time employees at a singe site, regardless of what percentage of the workforce that is, also triggers the 60 days' notice under the Illinois WARN Act. Under Federal law it’s 500.

Under both, if a layoff that was supposed to be for less than 6 months extends beyond 6 months, it’s an “employment loss” that triggers the notice requirement.

Employers also must notify workers if a plant relocates. Relocation is when a plant moves and workers are not offered transfers within commuting distance.

Under both Acts, an employer who violates the law by laying off without giving proper notice is required to pay each laid off employee for up to 60 days of back pay and benefits.

There are three exceptions when an employer doesn’t have to give 60 days' notice. A “faltering company” doesn’t have to if notice would scare off investors or lenders who might save the company. And notice isn’t required if the layoff or shutdown is unforeseeable, or results from a natural disaster. Companies in these situations should still give as much notice as possible of layoffs.

The WARN laws are complicated. Learn more on the US Department of Labor's website.