Understanding Illinois’ New NICU Leave Law: Key Takeaways for Employers

With the passage of the Family Neonatal Intensive Care Leave Act (the “Act”), Illinois employers must comply with new obligations when supporting employees during a critical time—the hospitalization of a newborn in a neonatal intensive care unit (NICU). Effective June 1, 2026, this law expands protected leave available to eligible employees and requires employers to take proactive steps to comply.

Who Must Comply?

The Act applies to all Illinois employers with 16 or more employees, with the following requirements:

• Employers with 16 to 50 employees must provide up to 10 days of unpaid, job-protected leave for employees whose child is admitted to a NICU.
• Employers with 51 or more employees must provide up to 20 days of such leave.

NICU leave is in addition to leave available under the federal Family and Medical Leave Act (FMLA). Employees eligible for FMLA must first exhaust that leave, with available NICU leave to follow, provided the child remains hospitalized.

Keep in mind that, unlike the FMLA, the Family Neonatal Intensive Care Leave Act provides leave to employees regardless of their length of service or employment status (i.e., full-time or part-time). Therefore, ineligibility for leave under the FMLA is not a valid reason to deny NICU leave.

Employees may take leave all at once or intermittently, with employers allowed to set a minimum increment of two hours. While employers may require reasonable verification of the NICU stay, such as documentation from a healthcare provider confirming the length of the child’s hospitalization, employers cannot require disclosure of confidential medical details.

During NICU Leave, Employers Must:

• Maintain the employee’s health insurance benefits;
• Guarantee reinstatement to the same or a substantially equivalent position; and
• Avoid forcing employees to use paid time off in lieu of unpaid NICU leave (though employees may choose to do so).

The Act also prohibits retaliation for using NICU leave. Violations may result in civil penalties up to $5,000 per infraction.

Compliance Strategies and Best Practices for Employers

Review and Update Policies

• Confirm whether your workforce meets the 16-employee threshold and revise handbooks to include NICU leave. Ensure policies clearly address how NICU leave interacts with FMLA and other leave policies.

Revamp Training:

• Provide training on the sequencing of FMLA and NICU leave, anti-retaliation rules, and the prohibition against requiring paid leave substitution. Ensure to also document all training in writing.

Develop Verification Procedures

• Implement a streamlined process for verifying NICU stays without requesting protected health information.

Coordinate with Benefits Providers

• Work with benefits providers to ensure benefits coverage continues seamlessly during unpaid leave.

Plan for Absences

• Anticipate staffing challenges during extended absences and prepare contingency plans, particularly in critical roles, as employees cannot be required to find replacements.

Monitor Regulatory Updates

• Stay alert for guidance or rules from the Illinois Department of Labor, which may issue updated compliance guidance or notice requirements.

Conclusion

The Family Neonatal Intensive Care Leave Act reflects a commitment by the state of Illinois to support families during medical emergencies. By proactively updating policies, training staff, and preparing for compliance, employers can minimize risk, meet evolving legal obligations, and foster a supportive workplace culture during an employee’s time of need.