The proposed resolution aims to address an urgent need to amend the Universal Paid Leave Amendment Act of 2016 by prohibiting private disability insurance providers from reducing short-term disability benefits based on any paid leave benefits an individual may receive from the District. This amendment is necessary to ensure that District workers can access both short-term disability benefits and Universal Paid Leave (UPL) benefits without one offsetting the other, regardless of where the insurance policy was issued. The resolution seeks to extend the protections provided by the Short-Term Disability Insurance Benefit Protection Clarification Temporary Amendment Act of 2025, which is set to expire on February 26, 2026.

The resolution highlights that many District employers offer private short-term disability insurance plans that provide partial income replacement for employees unable to work due to medical reasons, including postpartum recovery. However, it has been reported that some insurance companies have been offsetting the benefits provided under these plans by the amount of UPL benefits, which undermines the intent of the UPL program. The resolution emphasizes the need for stronger enforcement mechanisms to protect workers' rights to receive both types of benefits without interference, and it includes an extraterritoriality clause to ensure that the law applies regardless of the jurisdiction in which the insurance policy was issued. The Council considers these circumstances to be an emergency, necessitating immediate action.