Severance in Illinois

Illinoisseverance & layoff calculator

State law shapes how much of your severance you keep, when you can collect unemployment, and whether your employer owed you advance notice. Here’s what applies in Illinois.

Top marginal tax

4.95%

Severance is taxed at your state's top marginal rate when it pushes you into that bracket.

WARN Act

State mini-WARN: 75+ employees

Illinois layers its own WARN-style protections on top of federal law. Illinois WARN Act covers employers with ≥75 full-time employees (lower threshold than federal).

Unemployment max

$669 / week

Up to 26 weeks. Severance is treated as wages here, which delays unemployment insurance eligibility until your severance period ends.

PTO payout

Required by law

Illinois requires accrued, unused PTO to be paid out at separation regardless of your employment agreement.

Right to work

No

Non-right-to-work; union representation may be relevant to severance and grievance procedures.

Notes for Illinois

Worth knowing

Earned vacation is wages under the IL Wage Payment & Collection Act.

Sources: state department of labor, state department of revenue, and the U.S. Department of Labor ETA. Last verified: 2026-04.