202502.27
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WORKERS’ COMPENSATION LAW CHANGES REGARDING MENTAL STRESS CLAIMS

in 1) Business Law, 2) Employment Law

The New York Workers’ Compensation Law has undergone a significant amendment regarding claims for mental injuries. Previously, claims based on work-related stress were often difficult to pursue unless the employee was an emergency responder. The law now recognizes that other employees may also experience significant mental health consequences due to extraordinary work-related stress. This change broadens the range of employees eligible to file claims for mental injuries caused by exceptionally stressful work situations. While the specifics of what constitutes “extraordinary” stress will likely be defined through case law and further guidance, employers should be aware that the bar has been lowered, and more employees may now be eligible for benefits.

Employers should take several steps to prepare for this change:

  1. Review and update their workers’ compensation policies and procedures to reflect the expanded eligibility criteria for mental injury claims.
  2. Provide training to managers on recognizing the signs of extreme work-related stress in employees and the proper procedures for reporting potential claims.
  3. Communicate the availability of workers’ compensation benefits for mental health conditions resulting from extraordinary workplace stress to all employees.
  4. Consult with legal counsel to ensure your policies and procedures are fully compliant with the amended law.

Penalties are determined on a Case-by-Case Basis: Penalties will depend heavily on the specific situation. Was the employer negligent? Did they know about the stress and do nothing? Was there a pattern of disregard for employee well-being?