US and Canadian Courts Reshape Workers’ Compensation Law in Landmark Week

A series of court rulings and administrative decisions across North America this week have significantly altered the landscape of workers’ compensation, from workplace violence eligibility in Florida…

A series of court rulings and administrative decisions across North America this week have significantly altered the landscape of workers’ compensation, from workplace violence eligibility in Florida to holiday pay rights in Ontario. The decisions carry important implications for employers and their insurance obligations.

Florida Supreme Court Expands Coverage for Workplace Violence Victims

In a pivotal shift on July 9, 2026, the Florida Supreme Court broadened the scope of workers’ compensation eligibility for victims of workplace violence, overturning a previous interpretation that had limited benefits when the specific task being performed did not directly cause the injury.

The ruling in Bouayad vs. Normandy Insurance reversed a 2023 decision by the 1st District Court of Appeal. The case centred on Mohammed Bouayad, a hotel manager who was shot while walking between areas of a hotel near the Orlando airport. The lower court had denied his claim on the grounds that walking — the activity at the time of the shooting — was not the cause of his injury.

The Supreme Court rejected that narrow reading, holding that an injury can be considered as arising out of work performed even if the specific activity involved did not cause the harm. Instead, the court determined a claim is valid if the employment-related risk or the work environment heightened the risk of the assault. The case has been remanded to the 1st DCA for further proceedings, effectively clearing the way for workplace assault victims to seek benefits more easily.

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As these rulings demonstrate, the legal expectations around workplace safety and employer responsibility are tightening across North America — and the same principle applies in the UK. Many British employers risk costly gaps in their health and safety documentation, exposing them to fines and legal action. A free toolkit with ready-to-use risk assessments, checklists, and compliance guides can help you stay ahead of your obligations. Download the free Health & Safety Toolkit

New York Appeals Courts Clarify Exclusivity Defence Limits

On July 8, 2026, two separate rulings from New York appeals courts addressed the workers’ compensation exclusivity defence — the legal principle that typically prevents employees from suing their employers for negligence if they are covered by compensation insurance.

In a case involving Goodyear, the court ruled that exclusivity bars negligence claims related to sexual abuse that occurred after the employee reached the age of 18. However, it allowed a claim for a hostile work environment to proceed against the company.

In a separate ruling on the same day, a New York appeals court refused to dismiss sex abuse claims against the White Plains school district. The court found the district failed to establish an exclusivity defence because it did not provide proof that it carried the required insurance coverage during the period when the alleged abuse took place. The court split the negligence case, allowing claims based on conduct occurring after the employee reported the abuse to move forward while dismissing claims that predated the disclosure.

Ontario Arbitrator Upholds Holiday Pay for Long-Term Injured Worker

Labor authorities and advocacy groups in Canada also delivered significant compensation rulings this week. On July 9, 2026, an Ontario labor arbitrator ruled that a worker at a Quaker Oats facility in Peterborough is entitled to statutory holiday pay despite being absent on workers’ compensation benefits for more than five years. The decision confirmed that long-term absence due to workplace injury does not necessarily negate a worker’s right to holiday pay under specific labor agreements.

Newfoundland and Labrador Labour Group Calls for Benefit Increase

In Newfoundland and Labrador, the Federation of Labour called for an increase in income replacement benefits for injured workers on July 9. The federation noted that the WorkplaceNL 2025 Annual Report showed the Injury Fund was funded at 139.5%. Currently, the province provides 85% of net earnings for injured workers — a rate the labour group identified as one of the lowest in the country.

Other Notable Rulings

A Marriott employee in Toronto failed to revive a workplace safety reprisal claim on July 9, 2026, after a previous dismissal of the case. In Pennsylvania, state records cited on the same day indicated that political nominee Bob Brooks allegedly operated a lawn care business without required workers’ compensation insurance for a four-year period ending in late 2021. Pennsylvania law mandates coverage for any employer with one or more employees.