Last Updated on October 7, 2025 by MyHRConcierge

Illinois has introduced a significant new employment law that strengthens family leave rights for employees with newborns requiring intensive medical care. The Family Neonatal Intensive Care Leave Act, or HB2978, signed into law on August 15, 2025, and effective June 1, 2026, provides job-protected leave for parents whose infants are hospitalized in a neonatal intensive care unit (NICU). This law marks another step in Illinois’ continued effort to support family wellbeing and work-life balance, while also creating new compliance requirements for employers across the state with new paid leave laws.

Overview of the NICU Leave Act

The Family Neonatal Intensive Care Leave Act (NICU Leave Act) applies to all Illinois employers with 16 or more employees and grants job-protected, unpaid leave to employees whose child is receiving care in a hospital NICU due to a premature birth or other medical complications. The law allows employees to take time away from work to be present with and care for their hospitalized newborns without fear of losing their jobs.

The amount of leave available depends on employer size:

• Employers with 16 to 50 employees must provide up to 10 days of unpaid leave.
• Employers with 51 or more employees must provide up to 20 days of unpaid leave.

Employers with 15 or fewer employees are not covered under this legislation.

Leave Structure and Usage

Employees may take NICU leave continuously or intermittently depending on their needs and their child’s medical situation. When taken intermittently, employers may require a minimum increment of no less than two hours per instance. The duration of leave cannot exceed the child’s actual NICU stay or the maximum entitlement provided under the law- whichever is shorter.

Importantly, the law specifies that this leave is in addition to leave provided under the federal Family and Medical Leave Act (FMLA). If an employee exhausts their FMLA leave, they may still take NICU leave as provided by Illinois law. This ensures that employees are not forced to choose between bonding with their newborn and being present for critical medical care.

Employer Obligations and Protections

Under the new law, employers must:

• Maintain the employee’s existing health insurance benefits during the leave.
• Reinstate employees returning from NICU leave to their same or a substantially equivalent position.
• Prohibit retaliation against employees who exercise their rights or assist others in doing so.
• Accept reasonable verification of a child’s NICU stay but may not request detailed medical records protected under HIPAA.

The law also prevents employers from requiring employees to use accrued paid leave, such as vacation or sick days, during NICU leave. However, employees may choose to use paid time off (PTO) if they wish.

Compliance Considerations for Employers

Illinois employers should begin preparing for the June 2026 effective date by:

1. Reviewing and updating leave policies to ensure compliance with the NICU Leave Act.
2. Training HR teams and supervisors on the new leave rights and anti-retaliation provisions.
3. Updating employee handbooks to reflect eligibility, procedures for requesting leave, and verification requirements.
4. Coordinating with FMLA and other state leave programs to manage concurrent or successive leave periods properly.

Employers should also develop clear documentation procedures to confirm eligibility and track leave usage while maintaining employee privacy.

Supporting Families and Strengthening Retention

The NICU Leave Act reflects Illinois’ growing focus on family-friendly workplace policies. By allowing parents time to care for their critically ill newborns, the law promotes stronger family outcomes while also supporting employee retention and morale. For employers, compliance is not just a legal requirement= it is also an opportunity to demonstrate empathy, flexibility and commitment to the workforce.

Ensuring Readiness for the NICU Leave Law

As the Family Neonatal Intensive Care Leave Act takes effect in 2026, Illinois employers must act now to ensure readiness. Updating policies and communicating clearly with employees will help organizations remain compliant while fostering a culture of support during one of the most challenging times a family can experience.

For more information on how MyHRConcierge can assist your organization, contact us at 855-538-6947 ext.108, ccooley@myhrconcierge.com. Or, schedule a convenient consultation below: