Work-Related Stress Not Compensable if it Results from Personnel Decision

Saturday, September 8, 2007 | 0

By Harvey Randall

Mattoon v. Workers' Compensation Board, App. Div., Third Dept., 284 A.D.2d 667

An employee is the target of some personnel change or action involving his or her position or assignment. The employee, claiming that the personnel action was "stressful," quits and then files for unemployment insurance benefits. This was the situation underlying the appeal filed by Lori B. Mattoon.

Mattoon was employed by the New York State Department of Labor as an agency services representative. Her work assignment was changed by her new supervisor.

In December 1993, Mattoon left her employment "due to work-related stress that resulted in depression, post-traumatic stress disorder and generalized anxiety disorder."

The Labor Department conceded that "the event ultimately triggering [Mattoon's] psychic injury was a new manager's reassignment of [Mattoon] to a particularly stressful work position."

The Workers' Compensation Appeals Board, however, denied Mattoon's claim for workers' compensation benefits. The board determined that Mattoon's inability to deal with her new assignment was a direct consequence of lawful personnel decisions, which were taken in good faith by the employer.

Mattoon appealed, arguing that the board's determination that she did not suffer a compensable psychic injury is not supported by substantial evidence.

The 3rd Department rejected Mattoon's appeal. The court said that it was well established that a psychic injury based upon work-related stress is not compensable if it is "a direct consequence of a lawful personnel decision involving a disciplinary action, work evaluation, job transfer, demotion, or termination taken in good faith by the employer."

The decision comments that a "change of work duties" did not constitute a job transfer within the meaning of Workers' Compensation Law Section 2.7.

Harvey Randall is an attorney and public personnel law consultant in New York. His Web log can be found at http://publicpersonnellaw.blogspot.com/.

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