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 California Workers’ Comp?
Under Labor Code § 3208.3, a psychiatric injury is a mental disorder that causes disability or the need for medical treatment and is diagnosed according to the Diagnostic and Statistical Manual of Mental Disorders (DSM-5).
Common conditions that qualify include:
- Major depressive disorder
- Generalized anxiety disorder
- Panic disorder
- PTSD (Post-Traumatic Stress Disorder)
- Adjustment disorders
To be eligible, your condition must be substantially caused by actual events of employment and supported by medical evidence from a qualified doctor.
Legal Requirements for a Psychiatric Injury Claim
Mental health claims under workers’ compensation are more complex than physical injury claims. To be successful, your case must meet specific legal criteria:
1. Formal Medical Diagnosis
You must be diagnosed with a recognized psychiatric condition listed in the DSM-5 by a:
- Licensed psychiatrist, or
- Licensed psychologist
Saying you’re “stressed out” or anxious isn’t enough — the diagnosis must be specific and medically supported.
2. Work Must Be the Predominant Cause
To qualify, the actual events of your employment must be at least 51% responsible for your psychiatric condition. This is known as the “predominant cause” threshold, and it must be proven through credible medical-legal evaluations, such as:
- A report by a QME (Qualified Medical Evaluator), or
- An AME (Agreed Medical Evaluator) in represented cases
3. At Least 6 Months of Employment
You must have been employed for at least six months, which can be cumulative (not necessarily continuous), unless the injury was caused by a sudden and extraordinary event — such as:
- Witnessing a violent assault
- Being involved in a traumatic accident
- Experiencing a shocking event on the job
4. Exclusion for “Good Faith Personnel Actions”
Claims may be denied if the psychological injury was caused solely by legitimate, non-discriminatory management actions, such as:
- A lawful termination
- A negative performance review
- A demotion, reassignment, or disciplinary action
This is known as the “good faith personnel action” defense under Labor Code § 3208.3(h). However, this defense is often overused by employers — and we routinely challenge it when it’s misapplied or based on pretext.
Common Scenarios That Lead to Stress and Anxiety Claims
Here are just a few real-world examples where psychiatric injuries may qualify for workers’ compensation:
- A teacher develops severe anxiety due to constant harassment by a school administrator and repeated denial of prep time or breaks.
- A healthcare worker experiences PTSD after being attacked by a patient and receives no support from management.
- A female employee is subjected to sexual comments by a supervisor and retaliated against for filing a complaint.
- A warehouse employee develops depression after being overworked and publicly shamed for taking protected medical leave.
In each case, the psychological injury is linked to a clear pattern of harmful workplace conduct — making the worker eligible for compensation.
What Benefits Are Available for Mental Health Workers’ Comp Claims?
If your psychiatric injury claim is accepted, you may be entitled to the same types of benefits as those with physical injuries:
Medical Treatment
- Therapy sessions with licensed psychologists or psychiatrists
- Psychiatric medications (e.g., antidepressants, anti-anxiety meds)
- Hospitalization (if required)
- Ongoing care for PTSD or trauma-related conditions
Temporary Disability (TD)
- Wage replacement while you are off work due to your psychiatric injury
- Paid at two-thirds of your average weekly wage (subject to state maximums)
Permanent Disability (PD)
- A monetary award if your mental health condition results in lasting impairment
Supplemental Job Displacement Voucher
- If you are unable to return to your prior job, you may be entitled to a $6,000 retraining voucher
Lump-Sum Settlements
- If your condition stabilizes (Maximum Medical Improvement), your case may be resolved with a Compromise & Release settlement that includes a final payout
How to File a Workers’ Comp Claim for Stress or Anxiety
Filing a claim involves strict procedures and deadlines. Here’s how to get started:
- Notify your employer in writing that you’re experiencing a work-related mental health condition.
- Request and complete a DWC-1 Claim Form.
- Seek medical treatment through your employer’s Medical Provider Network (MPN), or request a panel of QMEs.
- Keep detailed records of all incidents, correspondence, and treatment (emails, texts, HR complaints).
- Contact an experienced workers’ comp attorney as soon as possible — delays and denials are common.
📌 TIP: If your stress is related to retaliation, harassment, or discrimination, you may also have claims under California’s Fair Employment and Housing Act (FEHA).
What If My Employer Retaliates Against Me?
If your employer fires, demotes, or harasses you because you filed a workers’ comp claim, that’s a violation of Labor Code § 132a — which prohibits retaliation against injured workers.
In this case, you may have two claims:
- A workers’ compensation claim for the psychiatric injury
- A civil claim for retaliation, disability discrimination, or wrongful termination
We handle both — and know how to maximize compensation across the board.
Why You Need a Lawyer for Psychiatric Workers’ Comp Claims
Psychological injury claims are among the most frequently denied in California. Why? Because they’re complex, subjective, and easy for insurance companies to dismiss.
Here’s how EFLL helps:
- We refer you to credible QME doctors experienced with psych claims
- We prepare strong documentation and testimony to prove causation
- We challenge “good faith” defenses and biased evaluations
- We protect your rights and fight for your full benefits and medical care
🧠 Your mental health matters. Don’t let a toxic workplace destroy it — or let an insurance company deny your pain.
Past Workers’ Comp Settlements for Psychiatric and Stress-Related Injuries
Every case is different, but real settlements show just how serious California takes mental health injuries caused by workplace trauma. Below are examples of past settlements involving psychiatric and emotional harm:
| Workplace Incident | Injury/Diagnosis | Settlement Amount |
|---|---|---|
| Armed robbery at a Grocery Store | PTSD, anxiety disorder | $125,000 |
| Physical assault by a coworker in a warehouse | Panic disorder, major depressive disorder | $150,000 |
| Repeated sexual harassment and retaliation by manager | PTSD, generalized anxiety disorder | $135,000 |
| Nurse witnessing multiple deaths due to understaffing | PTSD, sleep disorder, work-induced depression | $120,000 |
| Employee demoted after protected leave, public shaming | Adjustment disorder with depressed mood | $95,000 |
| Verbal abuse and humiliation by supervisor daily | Generalized anxiety disorder, panic attacks | $80,000 |
| Tech worker forced to work 14-hour days for months | Anxiety, exhaustion, stress-related disorder | $72,500 |
| Retail employee falsely accused of theft | Emotional distress, reputational damage | $60,000 |
💡 These results reflect settlements in real-world psychiatric claims. Each amount depends on the severity of the condition, duration of disability, medical treatment needs, and whether the worker could return to their job.
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 Employees First Labor Law today or contact us online for a free, confidential consultation. We’ll help you understand the big picture—and secure the outcome you deserve.
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