by Sheri
(Chicago)
I was told that I could not receive my benefits until my vacation payout was completed in weeks, even though I received one check. In other words I am being denied benefits for a specific amount of time due to this payout. Is this legal? When I spoke to HR at my former company they advised me they had never encountered this problem.
Hi,
Well HR doesn’t collect unemployment benefits …
Yes, it is legal and although some states do not count vacation paid out as “wages” and deductible income as far as UI benefits go apparently, Illinois does have a regulation which does say that vacation pay is deductible for the weeks of employment it represents.
See Table 5-15 (this is the 2010 Non-Monetary chartbook.. The issue varies by state and the USDOL provides a chartbook detailing how each state treats vacation pay.