Topics covered
Takeaway
House Bill 2978 creates new unpaid leave requirements for Illinois employers when a child is receiving neonatal intensive care.
Illinois employers may need to update leave policies before June 1, 2026. Under HB 2978 (Illinois General Assembly – Public Act 104-0259), eligible employees can take unpaid neonatal intensive care leave while their child is a patient in a neonatal intensive care unit, and covered employers must restore them to the same or an equivalent position when leave ends.
What is the Illinois Family Neonatal Intensive Care Leave Act?
The Illinois Family Neonatal Intensive Care Leave Act is an Illinois law that requires employers with 16 or more employees to provide unpaid, job‑protected leave when an employee’s child is receiving care in a neonatal intensive care unit (NICU).
Which employers are covered and how much leave is required?
HB 2978 applies to employers based on workforce size. Employees who work for an employer with 16 to 50 employees may take up to 10 days of unpaid neonatal intensive care leave.
For employers with more than 50 employees, the law provides up to 20 days of unpaid leave. This means multilocation or growing employers should confirm how employee counts are tracked and whether their current leave policies align with the new requirement.
| Employer size | Required unpaid NICU leave |
| 16-50 employees | Up to 10 days |
| 51+ employees | Up to 20 days |
Because the leave is unpaid, the law does not create a new wage-replacement requirement. But it does create new administrative responsibilities around policy language, leave tracking and job restoration.
What protections does the law provide?
The act includes job-protection provisions for employees who take qualifying leave. After the leave period ends, an employee must be returned to their former position or to a substantially equivalent role with no loss of benefits held or accrued before leave began.
The law also carries financial risk for noncompliance. Employers that violate the act may face a civil penalty of up to $5,000 for each affected employee.
When does it take effect, and what should employers do now?
The Illinois Family Neonatal Intensive Care Leave Act takes effect June 1, 2026. Before then, employers should review leave policies, update employee handbooks where needed, confirm how eligibility will be administered and make sure HR teams understand the law’s reinstatement requirements.
Be on the lookout for common compliance risks, such as:
- miscounted employee thresholds across locations
- incorrect sequencing with FMLA
- inconsistent job restoration after intermittent leave
- poor documentation if audited
Organizations also may want to evaluate how this leave interacts with existing federal, state or company-provided leave programs. A proactive review can help reduce confusion for managers, support employees during a difficult time and lower compliance risk.
As with any state-specific leave requirement, employers should monitor for additional agency guidance and consider whether internal processes are equipped to document, track and apply the new law consistently.
Conclusion
As state leave requirements expand, employers may want to assess whether their leave tracking and reinstatement processes are consistent across locations and employee types.
For more information, including FAQs and contact information, refer to the Illinois Department of Labor.
