Continuing our series on new laws impacting Illinois families, we turn our attention to the Family Neonatal Intensive Care Leave Act (HB 2978). This new law, effective June 1, 2026, provides critical, job-protected time off for employees whose newborns require extended hospitalization in a Neonatal Intensive Care Unit (NICU).
This legislation recognizes the immense stress and financial pressure facing parents during this unpredictable time, ensuring they can be present for their child without sacrificing their job security.
Key Requirements of the New NICU Leave Act
The Act applies to all Illinois employers with 16 or more employees and is specifically designed to provide time off in addition to standard family and medical leave.
1. Leave Provided Based on Employer Size
The duration of the job-protected leave is tiered based on the size of the company:
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Smaller Employers (16 to 50 employees): Must provide up to 10 days of unpaid, job-protected leave.
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Larger Employers (51 or more employees): Must provide up to 20 days of unpaid, job-protected leave.
The leave must be provided for the maximum number of days specified or the actual length of time the child was a patient in the NICU, whichever is less.
2. Leave is Job-Protected and Follows FMLA
While the leave is unpaid, it comes with strong protections:
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FMLA First: Employees who are eligible for the federal Family and Medical Leave Act (FMLA) must exhaust their FMLA time first.
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NICU Leave is Extra: The new NICU leave is granted upon the completion of and in addition to any leave taken under FMLA, providing a crucial safety net for parents whose child’s NICU stay exceeds the standard 12 weeks of FMLA.
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Job Guarantee: Upon returning from NICU leave, the employee must be reinstated to their former position or a substantially equivalent position with no loss of benefits accrued prior to taking leave.
3. Flexible Use and PTO Prohibition
The law offers flexibility to the employee while setting new limits for the employer:
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Flexible Use: Leave can be taken continuously or intermittently (e.g., shorter shifts to attend medical meetings).
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PTO Prohibition: Employers cannot require the employee to use their existing paid time off (vacation, sick time, etc.) instead of the unpaid NICU leave.
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