EMPLOYERS BEWARE! New Case Expands Employee Protection and Claims Substantially

On April 23, 2010, the Utah Supreme Court substantially expanded the rights of employees to bring claims for emotional distress against former employers. In Cabanese v. Thomas, the Court ruled that the date the statute of limitations is triggered is “at the time the last injury occurred or the tortious conduct ceases.” Accordingly, in repeated conduct cases, an employee can bring a claim for all conduct arising before the last event.

Moreover, the Court expanded the scope of recoverable damages by ruling that emotional distress and mental anguish damages are properly given in breach of employment contract cases when the contract (or employee handbook language) contemplates that an employee might suffer that type of injury when certain conduct occurs—such as when the handbook provides that the employer will not tolerate harassment.

Finally, the Court narrowly construed broad disclaimer language found at the beginning of the handbook that purported to disclaim contractual liability.

All employers should take a close look at their policies and amend them to limit their liability in light of this case.