Avoiding Workers' Compensation Claims For Stress-Related Injuries
Lisa B. Bohman
For years, employers have been concerned with the physical safety of their employees. However, if trends around the country and around the world continue, employers may also be forced to monitor their employees' mental well-being.
Some employers may be surprised to learn that workers' compensation claims for job-related mental stress are currently rising faster than any other type of claim. According to the California Workers' Compensation Institute, the typical employee making a claim for a mental stress injury is a white-collar professional over forty years old. While white-collar professionals account for only 20% of disabling injuries, they account for almost 70% of stress claims. Studies have shown that most claims are a product of cumulative stress occurring over an extended period of time rather than a single stressful event, such as an episode of workplace violence.
Recent cases in the United States and other countries suggest that courts may be growing more receptive to these claims. For example, in New Hampshire, a Department of Health and Human Services clerk's claim for workers' compensation benefits was upheld after she showed that she had suffered mental stress as a result of disciplinary actions and work-related criticism. A New Zealand probation officer was awarded fourteen years of lost wages, as well as compensatory damages and reimbursement for his medical costs, after his employer made him carry an unreasonable workload for an extended length of time and he was forced to retire after developing a stress-related injury.
Like employees in New Hampshire and most other states, Utah employees may recover compensation for injuries caused by stressful employment through a provision in the Utah Occupational Disease Act (UODA). As with other workplace-related injuries, an employee seeking recovery for such an injury must make a claim for compensation with the Utah Division of Industrial Accidents under a procedure similar to workers' compensation. Such a claim provides the exclusive remedy for any stress-related injury. Although the UODA allows an employee to recover compensation for physical, mental, or emotional injuries related to mental stress arising out of employment, employees making such a claim must meet a rather high standard.
To successfully recover for a stress-related injury, an employee must show a legal and medical causation. In other words, the employee must provide evidence of a connection between his employment and his injury. To meet the medical requirement, the employee must demonstrate that the stress caused the physical, mental, or emotional injury. To prove legal causation, an employee must show "extraordinary stress" that arises directly from his or her employment. The Utah Court of Appeals recently issued a decision in a case in which a woman suffered a mental breakdown and subsequently filed a workers' compensation claim for mental stress. The employee claimed that her breakdown was caused by her administrative responsibility for up to 200 business accounts, which forced her to carry two cell phones and regularly work from 5:00 a.m. to 11:00 p.m. In this case, which was narrowly focused on the way in which legal causation is determined, the court found that "extraordinary stress" is based on a national standard and not on comparisons to other employees in similar jobs. Consequently, if a Utah accountant were making a claim for a stress-related injury, he would not point to other accountants to establish "extraordinary stress" but would compare himself to a national standard that encompasses all employees.
While Utah does recognize claims for injuries caused by mental stress, the statute is extremely employer friendly. The UODA provides exceptions for good-faith actions that cause the average employee stress. These exceptions include good-faith disciplinary actions, work evaluations, job transfers, layoffs, demotions, promotions, terminations, or retirement. In addition, neither discrimination nor harassment can form the basis of a stress-related claim in Utah. These exceptions prevent the statute's application in most circumstances. To date, outside of the administrative context, Utah appellate courts have not been particularly friendly to such claims.
Certainly some degree of work-related stress is to be anticipated in all professions. However, employers who are already seeing the effects of job-related stress in their employees may want to consider some organizational changes. The National Institute for Occupational Safety and Health, the federal agency responsible for researching means to prevent work-related illness and injury, offers the following seven suggestions to employers seeking to relieve or prevent job stress. Employers can assign workloads in line with their employees' capabilities and resources, design jobs to provide opportunities for employees to use their skills in meaningful ways, clearly define workers' responsibilities, give employees opportunities to participate in decisions affecting their jobs, take steps to reduce uncertainty about future career prospects, provide opportunities for social interaction among workers, and establish work schedules that are compatible with personal responsibilities and demands. Such organizational changes may not only prevent future workers' compensation claims, but also yield other beneficial results such as greater productivity and an increased ability to retain high-performing employees.
Some employers may be surprised to learn that workers' compensation claims for job-related mental stress are currently rising faster than any other type of claim. According to the California Workers' Compensation Institute, the typical employee making a claim for a mental stress injury is a white-collar professional over forty years old. While white-collar professionals account for only 20% of disabling injuries, they account for almost 70% of stress claims. Studies have shown that most claims are a product of cumulative stress occurring over an extended period of time rather than a single stressful event, such as an episode of workplace violence.
Recent cases in the United States and other countries suggest that courts may be growing more receptive to these claims. For example, in New Hampshire, a Department of Health and Human Services clerk's claim for workers' compensation benefits was upheld after she showed that she had suffered mental stress as a result of disciplinary actions and work-related criticism. A New Zealand probation officer was awarded fourteen years of lost wages, as well as compensatory damages and reimbursement for his medical costs, after his employer made him carry an unreasonable workload for an extended length of time and he was forced to retire after developing a stress-related injury.
Like employees in New Hampshire and most other states, Utah employees may recover compensation for injuries caused by stressful employment through a provision in the Utah Occupational Disease Act (UODA). As with other workplace-related injuries, an employee seeking recovery for such an injury must make a claim for compensation with the Utah Division of Industrial Accidents under a procedure similar to workers' compensation. Such a claim provides the exclusive remedy for any stress-related injury. Although the UODA allows an employee to recover compensation for physical, mental, or emotional injuries related to mental stress arising out of employment, employees making such a claim must meet a rather high standard.
To successfully recover for a stress-related injury, an employee must show a legal and medical causation. In other words, the employee must provide evidence of a connection between his employment and his injury. To meet the medical requirement, the employee must demonstrate that the stress caused the physical, mental, or emotional injury. To prove legal causation, an employee must show "extraordinary stress" that arises directly from his or her employment. The Utah Court of Appeals recently issued a decision in a case in which a woman suffered a mental breakdown and subsequently filed a workers' compensation claim for mental stress. The employee claimed that her breakdown was caused by her administrative responsibility for up to 200 business accounts, which forced her to carry two cell phones and regularly work from 5:00 a.m. to 11:00 p.m. In this case, which was narrowly focused on the way in which legal causation is determined, the court found that "extraordinary stress" is based on a national standard and not on comparisons to other employees in similar jobs. Consequently, if a Utah accountant were making a claim for a stress-related injury, he would not point to other accountants to establish "extraordinary stress" but would compare himself to a national standard that encompasses all employees.
While Utah does recognize claims for injuries caused by mental stress, the statute is extremely employer friendly. The UODA provides exceptions for good-faith actions that cause the average employee stress. These exceptions include good-faith disciplinary actions, work evaluations, job transfers, layoffs, demotions, promotions, terminations, or retirement. In addition, neither discrimination nor harassment can form the basis of a stress-related claim in Utah. These exceptions prevent the statute's application in most circumstances. To date, outside of the administrative context, Utah appellate courts have not been particularly friendly to such claims.
Certainly some degree of work-related stress is to be anticipated in all professions. However, employers who are already seeing the effects of job-related stress in their employees may want to consider some organizational changes. The National Institute for Occupational Safety and Health, the federal agency responsible for researching means to prevent work-related illness and injury, offers the following seven suggestions to employers seeking to relieve or prevent job stress. Employers can assign workloads in line with their employees' capabilities and resources, design jobs to provide opportunities for employees to use their skills in meaningful ways, clearly define workers' responsibilities, give employees opportunities to participate in decisions affecting their jobs, take steps to reduce uncertainty about future career prospects, provide opportunities for social interaction among workers, and establish work schedules that are compatible with personal responsibilities and demands. Such organizational changes may not only prevent future workers' compensation claims, but also yield other beneficial results such as greater productivity and an increased ability to retain high-performing employees.
Copyright 2006. Published for general informational purposes only, and should not be construed as legal advice. If you need legal advice please consult with your attorney.