Workers’ Compensation Benefits Only Available for Emotional Injury Due to Personnel Actions if in Bad Faith
Under Massachusetts workers’ compensation law at Mass. G.L. ch. 152, § 1 (7A), an employee is not eligible for an award of benefits for a psychological and emotional injury that results from a bona fide (good faith) personnel action. But the employee would be eligible for benefits if a personnel action, such as a transfer, a promotion, a demotion, or a termination, is an intentional infliction of emotional harm, which, under the law, is not in good faith. To justify an award of benefits, the action must also be the predominant cause of the employee’s inability to work.
Hearing Judge Finds Employer Actions in Bad Faith
A dialysis nurse employed by Fresenius Medical Care Holdings, Inc. had been previously diagnosed with post-traumatic stress disorder (PTSD) from a brutal childhood, but her mental state was stable at the time of the incidents leading to her workers’ compensation claim. The hearing judge had awarded § 34 benefits and medical benefits to the employee. The judge had found that some of the work events that the nurse claimed led to her being disabled due to worsening of her PTSD could be construed as personnel actions, but that they were not in good faith and the exclusion from recovery for emotional injuries under § 1(7A)[1] did not apply.
Findings on Appeal
The insurer, American Casualty of Reading, Pa., appealed, denying that the actions that formed the basis of the employee’s injury were in bad faith, but claiming that they were “bona fide personnel actions” under current law and not intentional inflictions of emotional harm, as would be required under §1(7A) and § 29] for the employee to be eligible to receive benefits.