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 utilizing their entitled leave benefits.

The bill amends two sections of existing law: Section 107(j)(1) of the Universal Paid Leave Amendment Act and Section 120a of the Insurance Trade and Economic Development Amendment Act. The amendments clarify that no insurer may reduce benefits available under a temporary or short-term disability insurance policy based on benefits received under the Universal Paid Leave Amendment Act, reinforcing the rights of eligible individuals. The act is set to take effect on May 1, 2025, and will expire after 225 days unless further action is taken.