On July 26, 2023, Mayor Muriel Bowser signed the Short-Term Disability Insurance Benefit Protection Clarification Emergency Amendment Act of 2023 (DC Act 25-204) into law.
The Emergency 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 Emergency Act, the prohibition will remain in place for at least 90 more days until October 24, 2023.
We will continue to report on any additional extensions.
DC Act 25-204 »
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.
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