The Short-Term Disability Insurance Benefit Protection Clarification Emergency 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 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 amendments ensure that the definitions of "eligible individual" and "self-insured employer" align with the existing definitions in the Universal Paid Leave Amendment Act. The act is set to apply as of July 10, 2024, and will remain in effect for a maximum of 90 days following approval by the Mayor.