Governor Kathy Hochul has signed into law a groundbreaking piece of legislation, S.6635/A.5745, which significantly expands workers’ compensation benefits for employees facing mental health challenges tied to work-related stress. This new law, effective January 1, 2025, allows all employees to file for workers’ compensation in cases of specific mental health injuries resulting from extraordinary stress in the workplace.
How Does the New Law Impact Workers’ Compensation?
The new legislation introduces a substantial expansion in workers’ compensation coverage for mental health injuries, a shift from the previous law, which only allowed first responders with post-traumatic stress disorder (PTSD) to file claims. Under the updated Section 10(3)(b) of New York’s Workers’ Compensation Law, employees are no longer required to prove that their stress is greater than what is typically experienced in their workplace environment. This change removes barriers to filing claims, making it easier for workers to seek compensation for mental health issues stemming from workplace stress.
“Extraordinary stress” is now defined more broadly, allowing employees to file claims for a variety of work-related pressures, including common job irritations, provided they can show that the stress was beyond the normal scope of their role. However, the term “extraordinary” will be subject to interpretation by the Workers’ Compensation Board, and employees must present compelling evidence, including expert medical testimony, to prove their claims.
The Potential Impact of the Legislation
With this broader coverage, New York is likely to see a sharp increase in workers’ compensation claims related to mental health issues caused by work stress. At the same time, however, these changes may result in fewer emotional distress lawsuits filed outside of the workers’ compensation system. Under New York law, workers’ compensation serves as the exclusive remedy for work-related injuries, which means employees who claim stress-related mental health injuries cannot generally sue their employers for emotional distress.
There are exceptions to this rule, such as if the employer fails to provide necessary insurance or if the stress results from an intentional act by the employer. In these cases, employees may still pursue emotional distress claims in court.
What Does This Mean for Employers?
Employers in New York must review their workers’ compensation policies to ensure that they are prepared to handle claims related to work-related mental health stress. The new law’s broad scope means that mental health claims from employees are likely to become more frequent, and businesses must be ready to manage these claims.
Employers are also advised to consult with labor and employment legal professionals to better understand the potential implications of this law, including what constitutes “extraordinary” stress in specific work environments.
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