Workers’ compensation coverage has expanded in New York after Governor Hochul signed new legislation, which went into effect on January 1, 2025. Now, any employee in New York State is eligible to file for workers’ compensation claims stemming from exceptional stress experienced in the workplace. Below is a discussion of the latest amendment to the workers’ compensation law and its impact on employers.
Expanded Coverage
Previously, only first responders who had post-traumatic stress disorder or other mental injuries could bring mental health claims under the workers’ compensation law. The injury must have been incurred while responding to a “work-related emergency.”
Now, the law has removed these limitations, and the expanded coverage allows all employees in the State of New York to file a claim for mental injury sustained due to “extraordinary work-related stress.”
What is “Extraordinary Work-Related Stress”?
The ultimate determination of whether the mental injury is “extraordinary” will be left to the Workers’ Compensation Board’s Administrative Law Judges (ALJs). The law has not defined critical terms, such as “extraordinary work-related stress,” thus suggesting that ALJS within the Workers’ Compensation Board will have significant discretion in deciding these claims.
The new law states that an employee’s claim will not be immediately rejected if it is shown that the “stress was not greater than that which usually occurs in the normal work environment.” This means claims will not be denied just because the stress experienced is ordinary and consistent with the usual pressures of the job. This indicates that ALJs will not just look at the cause of the injury but also the degree and type of injury the claimant suffered. The circumstances of the stress and its impact on the employee’s mental health will be evaluated by the ALJs.
The mental injury can result from a singular event, or it can be based on the accumulation of several incidents. Whether there is a causal relationship between the injury and the work-related activity will also be a factual question that the ALJs will have the authority to decide.
Takeaway
Employers can proactively reduce the risk of claims by equipping managers with the skills to identify and address employee triggers effectively. Training managers to use clear, empathetic, and constructive language is essential for fostering respectful communication and ensuring concerns are handled with care. Implementing risk mitigation strategies, such as professional communication training for supervisors so that they recognize workplace stressors, can prevent situations that may lead to unnecessary tension.