New York Governor Kathy Hochul recently signed a bill into law that’s likely to have a significant impact on workers’ compensation here in New York. Ultimately, it creates an additional burden on employers and is bound to make the insurance landscape more costly as time goes on.
The law, which amends section 10 of New York’s Workers’ Compensation Law, permits all workers to receive workers’ compensation benefits for post-traumatic stress disorder (PTSD) under New York’s work-related stress coverage.
Previously, only police officers, firefighters, and EMTs could file a workers’ compensation claim for mental injury due to work-related stress. However, as of January 1, 2025, each and every single employee in New York can file for workers’ compensation benefits if they believe they’re experiencing a mental health crisis because of extraordinary work-related stress.
Specifically, the law states that when a worker files a claim for extraordinary work-related stress, the Workers’ Compensation Board may not automatically disallow the claim by finding that “the stress was not greater than that which usually occurs in the normal work environment.”
Essentially, this means that the Workers’ Compensation Board can’t reject a claim simply because the complained-of stress is typical of a normal work environment. Instead, it appears that if the job is one that often provokes extraordinary stress (think healthcare workers, pilots, PR executives, IT professionals, customer service representatives – and even attorneys!), workers’ compensation coverage may very well be available to the employee.
This law explains that it intends to expand coverage to all New York workers:
“to ensure that work-related PTSD is properly identified and treated as part of the workers’ compensation system.”
The new law likely will lead to an increase in claims being filed allegedly due to extraordinary work-related stress. Many business and insurance organizations have gone on record with their concern about the financial impact of this added benefit.
For example, the Business Council of New York State wrote in a statement that it believes “in addition to increasing the cost of litigation, this bill would transfer the cost of treatment and disability for psychological conditions that are now considered work-related to the workers’ compensation system.” As this law is brand new, the resulting financial costs aren’t quite clear yet but are bound to occur. Indeed, the American Psychological Association estimates that nearly 4 out of 5 workers in the United States complain of work-related stress.
The new law also could lead to extensive litigation, because it failed to define the term “extraordinary work stress.” While eventually State Labor Department regulations may clear this up, the current ambiguity could result in varying interpretations, leading to further uncertainty and economic burden on employers.
At The Coppola Firm, we’re monitoring employment legislation and the regulatory environment all the time. We’ll keep our employer colleagues and friends updated as the workers’ compensation/mental health scenario plays out in the coming months and years.
If your company has a question about employment laws – whether federal or New York State law – let us know. You can call us at 716.839.9700 or email us at your convenience. We’re always happy to help.
