
Mental health is just as important as physical health — and California law agrees.
If your job is causing you serious stress, anxiety, panic attacks, or depression, you’re not alone. Many California workers experience emotional and psychological injuries due to hostile work environments, unreasonable expectations, bullying, or retaliation. What most don’t realize is: you may be entitled to workers’ compensation benefits — even if there’s no physical injury.
At Employees First Labor Law, we help workers file and win psychiatric stress claims, especially when employers or insurers try to downplay or deny mental health conditions. You deserve to be treated with dignity — and compensated when your workplace makes you sick.
🧠 What Is a Psychiatric Injury Under Workers’ Comp?
Under California Labor Code § 3208.3, psychiatric injuries — including stress, anxiety, depression, panic disorders, and PTSD — are recognized and compensable under the workers’ compensation system. These injuries may result from:
- Hostile work environments
- Harassment or discrimination
- Retaliation or bullying by supervisors
- Workplace violence
- Unrelenting pressure or unreasonable deadlines
- Being wrongfully terminated or demoted
- Witnessing traumatic events on the job
To qualify, your mental condition must be diagnosed by a licensed psychiatrist or psychologist, and caused primarily by actual events at work.
Legal Requirements for a Successful Stress-Based Claim
Stress and anxiety claims are more complex than physical injury claims. You must prove several specific elements:
✔️ 1. A Medical Diagnosis
You must be diagnosed with a condition listed in the DSM-5 (Diagnostic and Statistical Manual of Mental Disorders), such as:
- Generalized anxiety disorder
- Adjustment disorder
- Major depressive disorder
- PTSD
- Panic disorder
Merely saying you’re “stressed out” isn’t enough — a formal diagnosis is required.
✔️ 2. Work Must Be the “Predominant Cause”
The events at work must be at least 51% responsible for the condition. This is known as the “predominant cause” threshold and must be proven through medical evidence.
✔️ 3. You Must Have Worked There At Least 6 Months
California requires that the injured worker has been employed for at least six months — unless the injury was caused by a sudden, extraordinary event (e.g., witnessing a workplace death or being assaulted).
✔️ 4. Exclusion for “Good Faith Personnel Actions”
If your stress is caused solely by legitimate actions such as:
- A lawful termination
- A performance review
- A demotion or schedule change
…your claim may be denied under the “good faith personnel action” defense. However, this exception is often misused by employers, and we frequently challenge it successfully.
🛑 Common Reasons Workers File Stress Claims
These are real scenarios where employees were eligible for workers’ comp for stress and anxiety:
- A female employee is constantly harassed by her manager, who makes sexist remarks and retaliates when she complains.
- A nurse develops PTSD after witnessing repeated patient deaths due to hospital understaffing.
- An employee is demoted after taking protected medical leave, then subjected to public criticism and humiliation.
- A retail worker develops severe anxiety due to being constantly belittled, denied breaks, and threatened with termination.
👉 Explore our Workplace Discrimination page here
👉 Visit our Workers’ Compensation page for more case types
💰 What Benefits Are Available for a Mental Health Workers’ Comp Claim?
If your claim is accepted, you may receive:
- Paid Medical Treatment – therapy, psychiatric care, medication, and follow-ups
- Temporary Disability (TD) – wage replacement if you’re unable to work during recovery
- Permanent Disability (PD) – if your condition has lasting effects on your ability to function or work
- Supplemental Job Displacement Voucher – funds for retraining or education if you can’t return to your old job
- Potential lump sum settlement if your condition is stabilized (via a Compromise & Release agreement)
👉 Need help calculating the value of your claim? Use our Workers Comp Calculator here
🧾 How to File a Workers’ Comp Claim for Stress or Anxiety
- Notify your employer in writing of your work-related mental health condition.
- Ask for a DWC-1 Claim Form and fill it out immediately.
- Get evaluated by a primary treating physician or panel QME.
- Document everything — emails, text messages, incident reports, medical records.
- Consult a workers’ comp attorney to avoid delays or denials.
👉 Learn more about temporary disability payments available to you here
🚨 What If Your Employer Retaliates Against You?
If you’re punished for filing a claim — such as being fired, demoted, or harassed — your employer is in violation of Labor Code § 132a, which prohibits retaliation for asserting workers’ comp rights.
In that case, you may have two claims:
- A workers’ comp claim for the mental health injury
- A retaliation/wrongful termination lawsuit under California employment law
👉 See if you qualify for a disability discrimination claim
⚖️ Why You Need a Lawyer for These Claims
Insurers love to deny psychiatric claims. They may argue:
- “It’s personal stress, not work-related.”
- “The injury is fake or exaggerated.”
- “It’s caused by a valid termination.”
- “They didn’t complain while they were still working.”
Our team knows how to fight back. We connect you with the right QME doctors, gather the necessary documentation, and present a compelling case to maximize your benefits and secure justice.
🧩 Work-Related Stress and Anxiety? You’re Not Alone. And You Don’t Have to Fight Alone.
At Employees First Labor Law, we believe no one should be driven to a breakdown by their job. If your mental health has suffered because of how you’ve been treated at work, we’re here to help you reclaim your life and your rights.
📞 Call us now for a free, confidential consultation
📩 Schedule a case review with our Workers’ Comp team
✅ No fees unless we win
✅ Medical referrals available
✅ Multilingual support
✅ Offices serving all of California