Last week, we discussed how layoffs work in conjunction with Massachusetts workers compensation claims. This week, we have two frequently asked questions about stress claims.
#1: Are stress claims due to fears of being laid off compensable?
Many states will NOT allow employees to collect workers comp because of layoff fears. It has been ruled that a worker could not be reimbursed for stress caused by the company’s bankruptcy and failing stock price. This tension is NOT related to “events of employment.”
#2: What about stress claims resulting from termination? Are they covered?
Due to the enormous number of layoffs and terminations, this is fairly new territory. Only California has rules that stresses from termination are considered a compensable injury. However, CA has allowed compensability of other types of medical conditions (heart attacks, etc.) where no other states have followed. It is best to speak with your insurance agency before you assume anything.
At Wolpert Insurance, we believe it is important for business owners to fully understand what Massachusetts workers compensation will do for the company and your employees. If you ever have any questions or concerns, never hesitate to contact our agency or visit our YouTube channel for updated videos and Q&A sessions.