The proposed "Workplace Psychological Safety Act" establishes a public policy recognizing mental health as integral to employee well-being and mandates employers to create a psychologically safe work environment free from psychological abuse, including bullying and mobbing. The bill outlines employees' rights to a dignified workplace and employers' responsibilities to acknowledge, monitor, prevent, discourage, and adequately address psychological abuse.

Key provisions of the bill include definitions of terms related to psychological safety and abuse, the prohibition of engaging in psychological abuse, and retaliation against employees who report such behavior. Employers are required to implement preventive measures, training, and reporting procedures to address incidents of psychological abuse.

The legislation establishes employer liability for failing to provide a psychologically safe work environment and outlines legal remedies for affected employees, including reinstatement, economic damages, compensatory damages, punitive damages, and injunctive relief. An affirmative defense is available for employers who can demonstrate they took appropriate steps to prevent and address psychological abuse.

The bill introduces a three-year statute of limitations for filing claims, includes a severability clause ensuring that if any part of the chapter is held unconstitutional, the remainder remains valid, and clarifies that it does not limit existing employee rights under other laws or collective bargaining protections. The act will take effect upon passage.