The proposed bill establishes the "Workplace Psychological Safety Act" as a new chapter in Title 28 of the General Laws, aimed at ensuring the psychological safety of employees by holding employers accountable for workplace bullying. The act defines workplace bullying as unwelcome, degrading, and dehumanizing conduct that is severe or pervasive enough to create a work environment that a reasonable person would consider threatening, hostile, or abusive, and that unreasonably interferes with the target's ability to perform job duties.

Employers and representative employees are required to take all reasonable preventative and responsive measures to provide safe work environments free from bullying. This includes acknowledging and responding to complaints within a reasonable timeframe, providing a transparent complaint process with fair investigations, maintaining accurate records, and training all employees on anti-bullying policies. The act prohibits employers from mandating mediation or arbitration of bullying complaints before employees have retained legal counsel and from engaging in adverse employment actions against those who report bullying.

The act outlines employee rights, including the ability to file a cause of action within three years of the last violation and the option to use a pseudonym in cases where there is a credible risk of retaliation. Complainants who prove violations are entitled to various remedies, including compensatory damages, punitive damages for extreme violations, injunctive relief, and restorative measures for reputational damage. The act also stipulates penalties for employers who fail to comply with specific provisions, with a maximum penalty of $100 for certain offenses and a cap of $15,000 for other violations. A regulatory review of the chapter is required five years after its enactment, and the act will take effect upon passage.