New York significantly expanded workers’ compensation benefits to include coverage of certain mental health-related injuries. As of January 1, 2025, the New York Workers’ Compensation Law provides that “all workers” who suffer “mental injury premised upon extraordinary work-related stress” may file for workers’ compensation benefits for specific types of mental health injuries. Although not much has been written about this change, it may be a significant amendment depending upon how the New York State Workers' Compensation Board and the courts interpret the phrase “extraordinary work-related stress.” To put it in context, mental health injuries are specifically covered to some extent by the workers’ compensation laws in 34 states, but seven states exclude coverage for mental health injuries. Previously, New York permitted recovery of mental injuries where the stressor was greater than that which other similarly situated workers experienced in their normal work environment.
With the new amendments, the “extraordinary” standard is arguably a higher standard for employees to meet, and it clearly applies to “all workers.” The more expansive and express language of “all workers” may increase the number of mental health injury claims filed and associated employer costs, such as higher premiums. We also note that unless the New York legislature explicitly states otherwise, statutory amendments generally have prospective application; thus, the amendment would appear to apply only prospectively since it has no express language indicating retroactive application. On the other hand, there is New York case law holding that newly enacted Workers’ Compensation amendments can be applied to existing cases where there has been no final resolution before the Workers’ Compensation Board. See Matter of McMillan v. Town of New Castle, 162 A.D. 3d 1425, 1427 (3d Dep’t 1991).
Other states provide similar workers’ compensation eligibility for benefits but also impose significant thresholds on the recipients. For example, to receive benefits in California for mental health injuries, there must be a psychiatric injury which “causes disability or need for medical treatment.” Other states require the disability to arise out of “actual events of employment.”
In New York, whether an employee is entitled to worker’s compensation benefits because of work-related mental health injuries will be decided on a case-by-case analysis, likely supported by medical testimony. However, the statute does not define or otherwise provide guidance on “extraordinary work-related stress.” It seems likely that administrative law judges may inconsistently interpret the statutory language.
Unanswered Questions
The new law leaves many questions and few answers. First, workers’ compensation benefits have traditionally provided benefit payouts according to published charts setting forth how much certain physical injuries should be compensated, the maximum number of weeks allowable for compensation and the healing period. For example, New York Workers’ Compensation Board stipulates that the loss of one arm provides a healing period of 32 weeks, and 312 weeks as the maximum number of weeks allowable for compensation. Mental health injuries are less susceptible to such empirical formulas, but the Workers’ Compensation Board’s decisions and Guidelines suggest that the Board will consider an amalgam of factors including the worker’s education, age, work experience and job requirements.
Second, under the law’s “exclusivity provision,” workers’ compensation is the exclusive remedy for workplace injuries. New York Workers’ Compensation Law § 29(6). Many employment discrimination statutes provide emotional distress damages as a remedy for workplace discrimination, harassment, or retaliation. It is not clear how, if at all, the workers’ compensation exclusivity provision will preclude or limit emotional distress damages under the anti-discrimination laws.