By: HUB's Absence Management Team

Illinois Governor J.B. Pritzker signed the Family Neonatal Intensive Care Leave Act (NICLA, Public Act 104-0259) into law on August 15, 2025, creating new unpaid leave entitlements for employees with a child in a neonatal intensive care unit (NICU). Effective June 1, 2026, the law applies to all Illinois employers with 16 or more employees and provides job-protected leave that is separate from and in addition to leave available under the federal Family and Medical Leave Act (FMLA). With the effective date now just weeks away, employers should understand the law’s requirements and take steps to prepare.

Which employers are covered

NICLA applies to all Illinois employers with 16 or more employees. Employers with 15 or fewer employees are not covered by the law. The amount of leave required depends on employer size:

  • 16 to 50 employees: Up to 10 days of unpaid, job-protected leave while the employee’s child is a patient in a NICU.
  • 51 or more employees: Up to 20 days of unpaid, job-protected leave while the employee’s child is a patient in a NICU.

Employee eligibility

Unlike FMLA, NICLA leave is available to all employees regardless of their length of service or whether they work part-time or full-time. This means newly hired and part-time employees are eligible for NICU leave from the start of their employment, significantly broadening the pool of covered workers compared to FMLA.

How NICLA leave works

Employees may take NICLA leave continuously or on an intermittent basis while their child remains in the NICU. Employers may set a minimum leave increment, provided it is no less than two hours. Key details include:

  • Interaction with FMLA: NICLA leave is in addition to FMLA leave. However, employees who are eligible for FMLA must first exhaust their FMLA leave before using NICLA leave, provided the child remains hospitalized in the NICU.
  • Paid time off: Employers cannot require employees to use accrued paid time off (such as PTO or leave under the Illinois Paid Leave for All Workers Act) in lieu of unpaid NICLA leave. However, employees may voluntarily choose to substitute for available paid leave.

Employer obligations during and after leave

Employers covered by NICLA must comply with several obligations when an employee takes NICU leave:

  • Maintain the employee’s health insurance benefits for the duration of the leave
  • Reinstate the employee to the same or a substantially equivalent position with no loss of benefits held or accrued prior to taking leave
  • Refrain from requiring the employee to find a replacement worker during the leave period
  • Do not require the employee to exhaust accrued paid time off before taking unpaid NICLA leave

Anti-retaliation protections and penalties

NICLA includes strong anti-retaliation protections. Employers are prohibited from retaliating against employees who take NICU leave, assert their right to take leave, or support coworkers who exercise their rights under the law. The IDOL is authorized to issue rules to clarify and enforce the law, which may include future notice requirements.

Employees who believe their rights were violated have 60 days from the last event constituting the alleged violation to file a complaint with the IDOL or bring a private civil action in circuit court. Violations can result in civil penalties of up to $5,000 per incident, along with payment of unpaid wages and other damages.

How NICLA compares to FMLA

While both laws provide job-protected leave, there are important differences employers should understand:

  • Employer threshold: FMLA applies to employers with 50 or more employees; NICLA applies to employers with just 16 or more.
  • Employee eligibility: FMLA requires 12 months of employment and 1,250 hours worked; NICLA has no tenure or hours requirement.
  • Leave duration: FMLA provides up to 12 weeks; NICLA provides 10 or 20 days depending on employer size, in addition to any FMLA leave already taken.
  • Paid leave substitution: FMLA allows employers to require use of accrued paid leave; NICLA does not—employees may choose to use paid leave but cannot be compelled to do so.

What employers should do now

With the June 1, 2026 effective date approaching, employers with 16 or more employees in Illinois should take the following steps:

  • Update employee handbooks and leave policies to include NICLA and clearly explain how it interacts with FMLA and other leave programs
  • Train HR staff and managers on NICLA compliance, including eligibility requirements, verification procedures, and anti-retaliation protections
  • Monitor the Illinois Department of Labor for additional guidance or rules, which may include updated compliance guidance or notice requirements

View more Absence Management updates on the Absence Management Bulletins page.

NOTICE OF DISCLAIMER

Neither Hub International Limited nor any of its affiliated companies is a law or accounting firm, and therefore, they cannot provide legal or tax advice. The information herein is provided for general information only and is not intended to constitute legal or tax advice as to an organization’s specific circumstances. You should consult an attorney, accountant or other legal or tax professional regarding the application of the general information provided here to your organization’s specific situation in light of your organization’s particular needs.