What New York Employers Need to Know About the Latest Workers’ Compensation Changes: Effective January 1, 2025

A significant update to New York’s workers’ compensation law now allows all employees to apply for workers’ compensation if they experience a mental health crisis caused by their job. Previously, this option was limited to select first responder positions.

This expansion introduces new considerations for employers:

Unique Requirements for Stress Claims - Employees must prove:

• The workplace stress they experienced was “greater than the usual irritations to which all workers are occasionally subjected.”

• The disability is not the direct result of a lawful personnel decision made in good faith.

  Impact on Claims and Litigation:

• Broader eligibility will likely increase stress-related claims.

• Employers and the Workers’ Compensation Board will face the challenge of determining what qualifies as “extraordinary” stress.

For example, under prior legislation, a bank teller present during a robbery could file a viable claim. Under the new rules, a teller may now file a claim based on the ordinary stressors of their role.

Why This Matters for Employers

The expansion of this law could lead to increased administrative and litigation expenses as cases are resolved on a case-by-case basis. Employers should prepare for potential impacts on operations and explore proactive strategies to support employee mental health.