I’m happy to say that the Ninth Circuit has just said “no,” in Pedroza v. Benefits Review Board, though I’m sorry that it took all this litigation to figure that out.
Harbor workers are entitled to worker’s compensation benefits for a wide range of job-related injuries, including psychological injuries. And this scheme, like worker’s compensation generally, isn’t premised on determining whether the employee was at fault in the accident that led to the injury. (Such a no-fault regime naturally dramatically reduces litigation costs.) But strict liability has its boundaries — the question is for what kinds of injuries the employer is to be strictly liable. In Pedroza, the Court accepted the Benefits Review Board’s Marino-Sewell doctrine, under which “psychological injury resulting from a legitimate personnel action” is not compensable. In the process, it also endorsed the Board’s conclusion that “psychological injuries as a result of a layoff” are likewise not compensable, though that particular question wasn’t directly implicated on these facts.

Tim says:
Don’t worry Professor Volokh, Obamacare will pay their salary, too.
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October 7, 2009, 1:05 pmwhit says:
there was a guy i worked with in hawaii who pulled a similar (imo) scam.
he was disciplined for misconduct and given a 2 week suspension. after the suspension, he went out on “stress leave” for several months. the cause of the stress? being suspended. lol. so, he got a 3 month vacation with pay because of the misconduct suspension. the administration was NOT amused, but there was nothing they could do about it
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October 7, 2009, 1:06 pmBryan Gividen says:
Some times stupid facts make smart law.
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October 7, 2009, 1:24 pmJoseph Slater says:
This is standard workers’ comp law. I’m surprised this case made it as far as it did, although I guess there is a right of appeal.
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October 7, 2009, 1:33 pmApu Nahasapasapeemipetilon says:
this sounds like something that would come up in Europe rather than here...
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October 7, 2009, 4:02 pmPrivatePigg says:
Except that in Europe the decision would have been the opposite.
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October 7, 2009, 10:10 pmreadery says:
If they were, then presumably psychological injuries due to a failure to hire would as well. (And would there a requirement to apply before liability attaches?)
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October 7, 2009, 10:40 pmRon Miller says:
The question here if very narrow; whether psychological injuries caused
by legitimate personnel decisions are compensable for workers comp. Someone correct me if I’m wrong but has a court in the country under any workers comp statutory scheme found differently?
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October 12, 2009, 2:33 pm