State Updates

District of Columbia Prohibition on Short-Term Disability Offsetting Extended Again

August 13, 2024

On July 25, 2024, Mayor Muriel Bowser signed the Short-Term Disability Insurance Benefit Protection Clarification Temporary Amendment Act of 2024 (Temporary Amendment Act) (DC Act 25-536) into law.

The Temporary Amendment Act extends the prohibition of short-term disability policies reducing benefits (also known as offsetting benefits) based on an insured’s receipt of DC Paid Family and Medical Leave benefits. The prohibition applies to fully insured policies regardless of where the policy is issued but does not apply to self-insured plans.

As previously reported, this prohibition was initially effective in May 2021 on a temporary basis and has been extended multiple times since. Under the new Temporary Amendment Act, the prohibition will remain in place for at least 225 more days until March 7, 2025.

D.C. ACT 25-536 »

PPI Benefit Solutions does not provide legal or tax advice. Compliance, regulatory and related content is for general informational purposes and is not guaranteed to be accurate or complete. You should consult an attorney or tax professional regarding the application or potential implications of laws, regulations or policies to your specific circumstances.

Never miss an issue

 

Subscribe