The proposed "Workplace Psychological Safety Act" aims to establish a legal framework that prioritizes mental health in the workplace by prohibiting psychological abuse and ensuring a safe work environment for employees. Key insertions in the bill include requirements for employers to adopt internal policies against psychological abuse, provide management training, conduct annual anonymous workplace climate surveys, and implement anti-retaliation measures for employees who report such behavior. The bill also clarifies that concerted activities under the National Labor Relations Act will not be classified as psychological abuse, thereby protecting employees' rights to engage in collective actions.

Furthermore, the legislation holds employers accountable for creating or allowing a toxic work environment, with significant penalties for violations, including economic, compensatory, and punitive damages. Employees are entitled to recover damages or a minimum of $5,000 for each violation, and protections against retaliation for reporting psychological abuse are explicitly outlined. The bill establishes an affirmative defense for employers who can prove they took necessary preventive measures and provides a comprehensive list of remedies for complainants, including reinstatement and injunctive relief. The statute of limitations for filing a complaint is set at three years, with provisions for tolling if a complaint is filed with OSHA or the Department of Labor. Overall, the act seeks to enhance employee well-being and dignity while ensuring accountability for psychological safety in the workplace.