Defense Victory: Successful Good Faith Personnel Action Defense Under Labor Code § 3208.3(h)

Case: [Redacted; redacted decision available upon request] v. Sun Chemical Corporation

Forum: Workers’ Compensation Appeals Board (WCAB)

The Challenge: The applicant alleged a psychiatric cumulative trauma injury resulting from work events. The stressors identified by the Agreed Medical Evaluator (AME) included a department reorganization, a job reassignment the applicant perceived as a demotion, and a disciplinary meeting regarding insubordination. Under California law, a psychiatric injury is not compensable if it was substantially caused by lawful, nondiscriminatory, good faith personnel actions.

The Strategy: Sassano & Fleischer Attorneys at Law aggressively litigated the “good faith personnel action” defense. Through witness testimony from management, the defense established that the restructuring and the applicant’s reassignment were personnel actions pursued lawfully, in good faith, and without discrimination.

The Result: The Workers’ Compensation Administrative Law Judge (WCJ) issued a Findings and Order in favor of the defendant. The judge ruled that the alleged injury was non-compensable because the defense successfully established that good faith personnel actions—including the reorganization and the disciplinary meeting—were a substantial cause of the psychiatric condition. The applicant was ordered to “take nothing” on the claim.

Why This Matters: This result highlights the effectiveness of a well-documented personnel record and credible management testimony in defeating psychiatric claims. By meticulously connecting the medical evaluator’s identified stressors to lawful employer actions, Sassano & Fleischer Attorneys at Law successfully utilized the statutory protections of Labor Code § 3208.3(h) to shield the client from liability for a non-industrial psychiatric claim.