Vol. X No. 11
February 2004
COMPENSATION
NEWS
MONTHLY REPORT
PSYCHIATRIC INJURED MUST
BE BASED ON EVENTS OF
EMPLOYMENT
They indicated that the public
policy to "limit" claims for
psychiatric injury should be
considered when making an award
for the applicant.
They ruled corporate
downsizing, without more, cannot
support an award for benefits.
They also ruled that stock losses
are not an event of employment.
Work related stress may qualify,
but it needs to be more than 50
percent of a psychiatric disability.
The Workers' Compensation
Judge (WCJ) ruled the applicant
did not suffer a psychiatric injury
because work stress was not the
predominant cause of the
psychiatric injury within the
meaning of Labor Code section
3208.3, subdivision (b) (1). The
Workers' Compensation Appeals
Board (WCAB) overruled the WC
J and found the applicant suffered
a psychiatric injury.
The appellate court reviewed
the legislative history of section
3208.3. It indicated that you must
look at actual events of
employment. It stated that an
event must be "something that
takes place". The event must be
something that arises out of the
employee's working relationship
with his or her employer.
The applicant alleged
a psychiatric injury
based on the firms
downsizing among
other reasons
The applicant alleged that the
company's stock declined in value
causing the applicant stress. It
was also alleged that the firm was
going to eliminate a significant
number of positions that created
stress for the applicant. Lastly,
the applicant alleged stress from
the job itself, including listening
to abusive comments from
customers.
Editor: Harvey Brown
Firm: Samuelsen, Gonzalez, Valenzuela
and Brown
Address: 18500 Von Karman #470
Irvine, Ca 92612
Phone: 949 252-1300
Email:hbrown@sgvblaw.com
Pacific Gas and Electric V.
WCAB .............................. 1
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