Workers’ Disability Benefits Parity Act of 2025

This bill would make disability benefits treat mental health and substance use disorders the same as physical health conditions. Plans and insurance companies could not set stricter limits, shorter time caps, or extra exclusions for disabilities caused by these conditions. If a mental health disability leads to physical problems, those problems must be counted as part of the same disability. The goal is to end common rules that cut off benefits sooner for mental health, which Congress says are discriminatory. The U.S. Department of Labor could fine violators, and people could go to court to make plans follow the rules. Stronger state protections could still apply .

The Labor Department would study costs and educate employers on how limits affect people with mental health and substance use disorders. Congress would provide $10 million per year for five years to carry this out. Most changes would start 18 months after the bill becomes law, with special timing for union plans under existing contracts.

• Who is affected:
  • Workers with disability benefits through their job and people who buy disability coverage from insurers.
  • State and local government employee disability plans; federal employee plans are not included.
• What changes:
  • No stricter limits or exclusions for disabilities caused by mental health or substance use disorders; related physical problems count too.
  • The Department of Labor can issue daily fines until problems are fixed; people can sue in state or federal court; states can also enforce these rules, and stronger state laws still stand .
  • The Department of Labor will study costs and provide outreach to employers.
• When:
  • Most rules start 18 months after it becomes law; some union plans may start later, after current contracts end. Funding is set for five years.