The Short-Term Disability Insurance Benefit Protection Clarification Emergency Amendment Act of 2026 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.

Additionally, the bill amends existing laws to make the prohibition on reducing benefits enforceable under the Insurance Trade and Economic Development Amendment Act of 2000. The amendments clarify the definitions of "eligible individual" and "self-insured employer" to align with the definitions provided in the Universal Paid Leave Amendment Act. These changes are intended to provide clearer legal protections for individuals relying on both short-term disability insurance and paid leave benefits, reinforcing their rights and ensuring they receive the full benefits to which they are entitled.