The Family Neonatal Intensive Care Leave Act: A New Step in Illinois Employment Law

Zohaib Zahir

Associate Editor

Loyola University Chicago School of Law, JD 2027

Workplace stability is often tested most during medical emergencies. Few events are more disruptive than a familial hospitalization, an event that places an incredible amount of emotional, financial, and logistical stress on individuals. Unfortunately, for many, access to protected work leave depends more on employer discretion rather than enforceable legal protections. Although the Federal Family and Medical Leave Act (FMLA) provides baseline protected leave for certain family and medical needs, its coverage is limited by employer size thresholds and employee eligibility requirements. Thus, as workforce participation has expanded and family structures have evolved, a clear significant gap in statutory protection has become apparent. To fill this gap, Illinois has enacted the Family Neonatal Intensive Care Leave Act (the “Act”), a law designed to expand on the FMLA by providing additional protections for employees.

Overview of the Family Neonatal Intensive Care Leave Act

The Family Neonatal Intensive Care Leave Act The Act is a recently enacted statute set to take effect on June 1, 2026. The Act provides protected leave to employees of an employer with 16 or more employees, allowing 10 days of unpaid leave while a child of the employee is hospitalized in a neonatal intensive care unit (NICU). An employee of an employer with 51 or more employees is entitled to use 20 days of unpaid neonatal intensive care leave.

Importantly, the Act provides employees with flexible leave options while ensuring continuity of employment benefits. Employees may take leave continually or intermittently at their own discretion. Those employees eligible for FMLA protections can access leave under the Act after completing any FMLA leave, as a separate benefit under Illinois law. The Act also prevents employers from requiring the use of accrued paid leave in place of this statutory leave. Crucially, throughout the leave period, employers are required to maintain health insurance coverage as if the employee had not taken leave. Upon returning, employees are entitled to reinstatement to their former position or a substantially equivalent one with no loss of benefits.

How the Act expands on the protections of the FMLA

Although the FMLA provides foundational protections for employees during medical emergencies, it leaves notable gaps that the Act addresses. First, coverage under the FMLA is limited to public agencies and private sector employers who employ 50 or more employees. This limitation effectively excludes many employees who work for private sector small business employers. In 2023, it was estimated that small businesses employed 61.7 million Americans, totaling 46.4% of all private sector employees. Furthermore, the FMLA requires that employees have worked at least 1,250 hours over the preceding 12 months. This limitation effectively excludes part-time and newly hired employees. As of December 2025, 27.8 million individuals were employed on a part-time basis in the United States. Combined, these statistics highlight the substantial gap in protections left unaddressed by the FMLA.

The Act provides additional leave to employees that are covered by the FMLA. For employees that are not covered by the FMLA, the Act provides employees protected leave when a child’s medical needs are most critical. This expansion is key as it provides health insurance and job security in one of the most stressful times in an individual’s life. When considered collectively, the Act aims to reduce employee anxiety, support family well-being, and allow employees to engage fully in both their work and parental responsibilities. For employers, by providing clear rules, the Act seeks to reduce legal risk and minimize any potential disputes that employers could face. Through defining clear leave thresholds, durations, and structures, the Act should make an employer’s action predictable which should enhance employee satisfaction and retention.

A meaningful step forward with potential to do more

The Act represents a meaningful step forward in employment law, providing protections for parents of children hospitalized in the NICU. The Act extends job protections to employees of smaller employers and part time workers, addressing critical gaps in federal leave provisions. While a significant step forward, the Act still leaves room for improvement. Future legislation efforts should consider extending paid leave options or broadening eligibility beyond NICU hospitalizations. Such an effort would cover more Illinois employees and provide more support for families. Nevertheless, the Act signals an important step to address the evolving needs of working families and by protecting employee’s benefits and health coverage while setting clear employer guidelines, the Act should assist Illinois in maintaining a healthy workforce.