The Short-Term Disability Insurance Benefit Protection Clarification Temporary Amendment Act of 2025 aims to enhance protections for individuals receiving short-term disability benefits in relation to the Universal Paid Leave Amendment Act of 2016. The bill prohibits private disability insurance providers from offsetting or reducing short-term disability benefits based on any actual or estimated paid leave benefits that an eligible individual may receive from the District. This prohibition applies regardless of the jurisdiction in which the insurance policy was issued, ensuring that individuals are not penalized for accessing their entitled leave benefits.

The bill amends two existing laws: the Universal Paid Leave Amendment Act of 2016 and the Insurance Trade and Economic Development Amendment Act of 2000. Specifically, it modifies Section 107(j)(1) of the Universal Paid Leave Amendment Act to clarify that no insurer may reduce benefits based on paid leave benefits, and it updates Section 120a of the Insurance Trade and Economic Development Amendment Act to enforce this prohibition under private market short-term disability insurance policies. The act is set to take effect on May 1, 2025, and will expire after 225 days.