HB0374 - Abusive Work Environment Act

• Creates a new civil cause of action for employees subjected to abusive work environments, defined as conduct severe enough to cause physical or psychological harm, with malice, and unrelated to legitimate business interests.

• Establishes employer vicarious liability for abusive work environments within their control, but provides affirmative defenses if the employer exercised reasonable care to prevent and correct the conduct or if negative employment decisions were based on legitimate business reasons.

• Caps emotional distress damages at $25,000 and prohibits punitive damages against employers when abusive work environments do not result in negative employment decisions, though individual co-employees remain fully liable.

• Allows remedies including injunctions, reinstatement, removal of offending parties, lost wages, medical expenses, emotional distress compensation, punitive damages (in certain cases), and attorney's fees.

• Establishes a one-year statute of limitations from the last act comprising the unlawful practice, with enforcement through civil lawsuits, and provides that remedies are in addition to workers' compensation benefits.