April 14, 2025 from Canadian HR Reporter
A BC Workers’ Compensation Appeal Tribunal (WCAT) decision is offering important insights into what constitutes a compensable mental health claim — and what doesn’t.
In A2202387 (Re), 2025 CanLII 9894 (BC WCAT), a medical laboratory assistant claimed chronic understaffing and work pressure led to a panic attack. While the tribunal recognized she experienced stress and high workloads, the claim was denied due to the absence of a formal diagnosis under the DSM and a lack of evidence that her work exceeded industry norms.
Legal Thresholds for Mental Health Claims
Under section 135 of BC’s Workers Compensation Act, a compensable mental disorder must meet two key criteria:
- It must be diagnosed by a psychiatrist or psychologist using DSM criteria, and
- Be either a reaction to a traumatic event or predominantly caused by significant work-related stressors.
In this case, the worker did not receive a DSM-based diagnosis, which WCAT cited as a critical threshold. But even so, the tribunal acknowledged that employers still have obligations.
“…any employee that’s coming to you and speaking about mental distress and burnout needs to be taken quite seriously,”
noted Bonnie-Louise Lussier, a lawyer with KSW Lawyers.
Workload Evaluations: Objective vs Subjective
A central issue in this case was whether the worker’s workload was unreasonable. She described missed breaks, early starts, and a high patient load, but WCAT found this aligned with typical expectations for her role.
The tribunal weighed both subjective experience and objective reality, stating:
“Where the general characteristics [of a worker] distort the reality of the event or stressor, less weight should be given to the general characteristics and more weight to the objective reality of the event or stressor.”
Employer Documentation and Due Diligence
Importantly, WCAT considered whether the employer had made efforts to mitigate stress. The company had restricted walk-ins and hired additional support — steps that helped demonstrate responsiveness.
For HR teams, this underlines the value of documenting:
- Staffing levels and workload distribution
- Efforts to hire or restructure
- Changes to job duties or schedules
- Internal communications on well-being
This kind of evidence can help employers show they took reasonable steps to prevent harmful working conditions.
Preventing Mental Health Issues Before They Escalate
Burnout, while real, doesn’t automatically meet the threshold for compensation. Still, employers must meet their obligations under occupational health and safety and human rights law. Lussier emphasized this, saying that
“Employers owe a duty of care in providing a workplace free of harm. And then there’s a duty to accommodate as well…where these existing mental health conditions might be at play for an individual at work.”
She recommends proactive steps like workplace safety assessments — conducted by neutral third parties — to identify potential issues before they escalate. These assessments can uncover early signs of stress, interpersonal issues, or team breakdowns.
Lussier described the value of this approach perfectly:
“Instead of waiting for the house to burn down, you go in and you see where the smoke might be starting.”
Considering an IME or document review to resolve an insurance claim, legal file, or workplace health and safety issue?
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