Stress and the Emerging Legal Liability Through Workers' Compensation: Some Suggestions for Management Action

Across the US, there has been an increase in the number of cases filed in courts and with Workers' Compensation Boards asking for compensation from the psychological and emotional impact of job-related stresses. The earliest court cases, principally in Texas, California, and Michigan, form the nucleus of support for the growing number of favorable decisions involving stress-related problems. Considered to be the earliest case that dealt with job-related stress, American General Insurance Co. vs. Bailey was decided in 1955. While the decision of the Appellate Court was considered a setback to workers suffering from mental disability, the case was noteworthy because the trial court attempted to establish a cause-and-effect relationship between an accident and the subsequent mental disorder of the plaintiff. Some recommendations to help organizations in this area the implementation of: 1. a total approach to managing stress in the organization, 2. a total approach to helping employees cope with personal and job-related stresses, 3. a continuous monitoring of a quality of life index (QLI), and 4. a policy of avoiding legal skirmishes with employees.