Effective June 1, 2026, Illinois’ Neonatal Intensive Care Leave Act (NICLA) requires covered employers to provide job-protected, unpaid leave to employees whose newborn is admitted to a neonatal intensive care unit (NICU).
Who’s covered
- Employer size: The amount of leave required under NICLA depends on the size of the Illinois employer.
- Employers with 15 or fewer employees are not covered by the law.
- Employers with 16 to 50 employees must provide up to 10 days of unpaid NICU leave.
- Employers with 51 or more employees must provide up to 20 days of unpaid NICU leave.
- Employee eligibility: NICLA uses the definition of “employee” from the Illinois Wage Payment and Collection Act and does not require any specific length of service or distinction between part-time or full-time status.
- Qualifying reason: Eligible employees may take unpaid leave under NICLA when their child is a patient in a NICU. A “child” under NICLA includes “a biological, adopted, or foster child, a stepchild, a legal ward, or child of a person standing in loco parentis.”
How NICLA leave works
- Amount & timing: Leave may be taken continuously or intermittently. Employers may set a minimum increment up to two hours.
- Interaction with FMLA: If an employee is eligible for FMLA, NICLA leave will not run concurrently. It is in addition to FMLA and is granted only after the employee has exhausted their FMLA entitlement.
- Benefits & job protection:
- Employers must maintain health benefits during NICLA leave.
- Employees must be reinstated to the same or equivalent position when leave ends.
- Employees cannot be required to find a replacement during their leave.
- Employers cannot require employees to use paid leave (for example, PTO or leave under Illinois PLAWA), though employees may choose to substitute available paid leave for unpaid leave.
- Verification: Employers may request reasonable verification of the child’s NICU length of stay but cannot request confidential medical details.
Enforcement & penalties
Retaliation is prohibited. Employees may file a complaint with the Illinois Department of Labor or bring a civil action within 60 days of the last alleged violation. Civil penalties can be up to $5,000 per affected employee.
Why this matters now
NICLA introduces new tracking and compliance requirements distinct from FMLA and other state leave laws. Employers should:
- Review and update leave policies to align with the new NICLA requirements.
- Train managers and HR teams on how to support employees who may request NICLA leave.
- Coordinate with payroll and leave administrators to track NICLA usage and ensure compliance once the law takes effect.
How Sparrow helps
Understanding and administering leave laws can be challenging—but compliance doesn’t have to be. Sparrow helps employers manage every step of the leave process, ensuring clear communication, accurate documentation, and a smooth experience for both HR teams and employees. With Sparrow, you can stay compliant with new requirements like NICLA while providing meaningful support to families when it matters most.