Every new parent wants the birth of their child to go smoothly, but according to the Centers for Disease Control (CDC.gov), nearly 10% of babies born in the U.S. are admitted to a neonatal intensive care unit (NICU). Working parents face unique challenges when attempting to take time off to care for NICU babies.
While eligible employees may be entitled to parental leave or paid family leave, only a few states have dedicated NICU leave laws. As of 2026, Illinois and Colorado are the only two states that specifically provide leave entitlements to NICU parents.
Here’s how NICU leave intersects with other paid and unpaid leave laws, and what HR teams can do to support their employees’ well-being at such a critical time.
NICU leave is a leave of absence provided to parents whose newborn needs medical care in a neonatal intensive care unit (NICU). NICU babies may be born early, with a low birth weight or another infant health condition that requires a hospital stay.
Employees may be eligible for parental leave during their baby’s NICU stay, but this reduces the total amount of time they have available for caregiving and bonding leave. NICU leave laws provide specific job protections for NICU parents, even if they don’t qualify for or have exhausted their entitlements under other leave laws.
Employers may have separate obligations under the Family and Medical Leave Act (FMLA), state-specific NICU laws, and/or company leave policies.
Employees in all 50 states are covered by the Family and Medical Leave Act (FMLA), which provides up to 12 weeks of unpaid leave to working parents after the birth of a child. However, only two states have dedicated NICU leave laws:
Colorado provides 12 weeks of paid leave for NICU parents as part of its Family and Medical Leave Insurance (FAMLI) program. It applies to parents, step-parents, foster parents, and adoptive parents, and is in addition to 12 weeks of bonding leave.
The new law came into effect on January 1, 2026. Eligible employees can report how many hours they spent at work and receive a payment for any hours they missed. All claims are handled through the My FAMLI+ portal.
In Illinois, the Family Neonatal Intensive Care Leave Act comes into effect on June 1, 2026. It provides unpaid, job-protected leave, but no paid time off.
The amount of leave available depends on the size of the employer:
Employees can keep their health insurance coverage while on leave, and they can’t be required to use paid time off (PTO) unless they choose to.
NICU leave is available to employees in two states: Illinois and Colorado. The Family and Medical Leave Act covers eligible employees throughout the U.S. In some cases, an employee might be eligible for leave under both laws. What happens then? Here’s what HR teams need to know about how FMLA and NICU leave intersect:
The Family and Medical Leave Act provides a total of 12 weeks of leave in a 12-month period, but it applies to a wide range of circumstances. These include:
This means that an employee may have already used up some of their FMLA leave for an unrelated condition, or for medical care related to their pregnancy — leaving them with less time to bond with their newborn child after their NICU stay.
This is where dedicated NICU leave comes in. In Illinois, NICU parents have access to 10 (or 20) days of NICU leave after their FMLA leave is exhausted.
In Colorado, they have access to 12 weeks of bonding leave in addition to any leave they used during their child’s NICU stay.
FMLA applies to covered employers with at least 50 employees, as well as schools and government agencies. Both full-time and part-time employees are eligible for FMLA, but must work for their employer for at least a year.
In Illinois, employers with as few as 16 workers must offer NICU leave. In Colorado, any business with at least one employee must enroll in FAMLI.
There’s no waiting period in either state, and new employees can access NICU leave immediately after employment.
The birth of a new child is a critical time for any working parent, but especially for those with a newborn in a neonatal intensive care unit. Employers should take special care to support their employee’s well-being by honoring their NICU leave entitlements. Follow these best practices to streamline and facilitate NICU leave management:
There’s a good chance that other states will follow Illinois and Colorado’s lead, but you don’t have to wait for leave laws to catch up. Many companies that offer paid parental leave are expanding their coverage to include NICU stays.
Be proactive when communicating with employees about their leave entitlements, and don’t wait until the birth of a child to explain their options.
When employees understand their options, they can make an informed decision about how to allocate their FMLA leave, sick leave, and other leave entitlements.
Employees don’t have to use their leave all at once. Under FMLA, employees can take intermittent leave for the same qualifying reason in the smallest available increment.
Illinois allows employees to use NICU leave intermittently, and in Colorado, employees access FAMLI leave benefits by reporting how many hours of work they’ve missed.
Use a leave of absence tracking tool like Pulpstream to track NICU leave, as well as any other types of leave that may apply. Employees can use a self-service portal to request a leave of absence and track their remaining leave balance.
Under laws like FMLA and FAMLI, NICU parents may need to provide documentation to support their request for NICU leave. This might include proof of their child’s admission to a hospital or the expected length of their hospital stay.
Employers can request documentation to verify their claim, but they should refrain from asking for detailed healthcare information that compromises their privacy.
Using a cloud-based document management system like Pulpstream allows you to get the information you need while adhering to FMLA confidentiality requirements. Store documentation safely and securely and away from other personnel files.
NICU leave is a type of leave entitlement for working parents with a child in a neonatal intensive care unit. It differs from prenatal leave and parental leave in that it applies only while the child is in the hospital. Employees may still be eligible for other types of leave to address their own medical condition or bond with their newborn child.
Only two states, Colorado and Illinois, mandate NICU leave, but an increasing number of employers offer it as part of their company leave policy. In addition, the Family and Medical Leave Act (FMLA) allows for NICU leave as one of its qualifying reasons.
Pulpstream’s HR automation platform supports NICU leave and other leaves of absence with automated workflows and a self-service portal. Track multiple types of leave using a single, cloud-based platform, with a built-in rule engine to determine eligibility and ensure regulatory compliance. Request a demo today to see how it works!