Legislative lowdown: Federal court strikes down workplace-related mental illness reporting rule

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A federal appeals court recently overturned a rule that requires employers to keep track of work-related mental illnesses.

The rule, which falls under the Occupational Safety and Health Administration (OSHA), was invoked in a lawsuit filed by Exxon Mobil last March. The company was cited by OSHA for failing to record an employee’s diagnosis with post-traumatic stress disorder, and Exxon Mobil subsequently challenged the citation.

In a July 21 opinion, the Fifth Circuit Court of Appeals said that OSHA doesn’t have the statutory authority to require employers to record employees’ work-related mental illnesses. It threw out the citation and penalty issued against Exxon Mobil, as well as the rule itself.

Background on OSHA’s record-keeping requirements. This recent case concerns a regulation that dates back to the Occupational Safety and Health Act of 1970, which includes a section mandating that employers record injuries or illnesses occurring on the job.

Since 2001, employers have been required to record work-related mental illnesses under this law, provided an employee voluntarily notifies them of their condition through an opinion from a physician or other licensed health care professional.

The Exxon Mobil case concerned a process technician who responded to a large explosion and fire that occurred at one of the company’s petroleum refineries in 2021. The employee was diagnosed with PTSD by a licensed clinical social worker who saw him during the months after the explosion. The social worker shared this diagnosis with Exxon, according to details from the Fifth Circuit’s opinion.

Exxon rejected opinions from three different providers who evaluated this employee and determined that he had PTSD stemming from the fire. After the company consulted its own provider, they determined that the employee “did not have a recordable work-related mental illness.” The employee’s union reported this to OSHA, which in turn issued a citation against Exxon.

What this means for HR. While the Fifth Circuit sided with Exxon in this case, the decision only applies to employers residing in select states, namely Texas, Louisiana, and Mississippi. “Employers with operations in those states should carefully evaluate the impact of the decision on their OSHA recordkeeping practices and any ongoing or future OSHA investigations involving employee mental health conditions,” attorneys with law firm Littler wrote in a blog post.

Nevertheless, the implications of the decision could extend beyond these states, the attorneys posited. This case highlights how the Supreme Court’s 2024 decision to overturn the Chevron doctrine is impacting case law, as some courts are now less inclined to defer to federal agencies on statutory matters, they noted.

The Fifth Circuit’s decision doesn’t give employers license to ignore employees’ mental health, a partner with the law firm Fisher Phillips noted. Regardless of whether an employer is obligated to record a workplace-related mental illness for OSHA, HR teams should continue to offer appropriate support and resources for affected workers.