Fifth Circuit Vacates OSHA Rule Requiring Employers to Record Work-Related Mental Illnesses

Key Takeaways

What Happened: On July 21, 2026, the U.S. Court of Appeals for the Fifth Circuit held that Section 8 of the Occupational Safety and Health Act (OSH Act) does not authorize the Occupational Safety and Health Administration (OSHA) to require employers to record work-related mental illnesses. The court vacated 29 C.F.R. § 1904.5(b)(2)(ix) and set aside a citation and a $691 penalty issued to an employer alleging the failure to record a work-related mental illness. Exxon Mobil Corp. v. Occupational Safety & Health Review Commission, No. 25-60108 (5th Cir. July 21, 2026). Although this precedent is only regionally binding, the court’s vacatur of the rule has nationwide practical effect.

Who’s Impacted: Employers subject to OSHA’s injury and illness recordkeeping requirements, particularly those whose policies treat work-related mental-health diagnoses as recordable under the vacated rule.

Potential Next Steps: Employers should review recordkeeping policies and monitor for any further OSHA developments involving mental illness, while avoiding changes to unrelated requirements for recording physical injuries and illnesses.

When Should They Act: Employers should review their procedures before making future recordability determinations involving mental-health diagnoses and monitor any further proceedings affecting the decision.

Background

The case arose from a December 2021 incident at a petroleum refinery. Multiple healthcare providers later diagnosed an employee who assisted during the incident with post-traumatic stress disorder (PTSD).

The employer ultimately relied on another provider’s review concluding that the employee did not have work-related PTSD and declined to record the diagnosis on OSHA Forms 300 and 301. OSHA issued an “other-than-serious” citation, which an Occupational Safety and Health Review Commission administrative law judge affirmed with a $691 penalty. The employer petitioned the Fifth Circuit for review.

The Fifth Circuit’s Decision

The Fifth Circuit focused on whether Congress authorized OSHA to require the recording of mental illnesses under 29 U.S.C. § 657(c)(2), which directs OSHA to require records of work-related “deaths, injuries, and illnesses.”

Applying the Supreme Court’s decision in Loper Bright Enterprises v. Raimondo, the court independently interpreted the statute rather than asking whether OSHA’s construction was merely permissible. It concluded that the statutory context supports reading “illnesses” as limited to physical conditions. Among other considerations, the court noted that Congress grouped “injuries” and “illnesses” together and described exclusions involving first aid, loss of consciousness, restricted motion, and job transfer—criteria the court found most naturally related to physical harms.

The court also relied on the OSH Act’s broader focus on occupational accidents, toxic materials, harmful physical agents, and physical workplace conditions. It rejected OSHA’s reliance on legislative history and the statute’s general workplace-safety purpose, reasoning that those considerations could not expand the specific authority Congress granted.

The court therefore held that OSHA exceeded its statutory authority in promulgating § 1904.5(b)(2)(ix). It vacated the rule, along with Exxon’s citation and penalty, without reaching Exxon’s separate Administrative Procedure Act and due-process arguments.

Although the Fifth Circuit’s statutory interpretation is binding precedent only within Texas, Louisiana, and Mississippi, the panel did not limit its remedy to Exxon’s citation. It expressly vacated 29 C.F.R. § 1904.5(b)(2)(ix). Therefore—absent a stay, rehearing, or reversal—OSHA faces a strong argument that it lacks authority to enforce that provision anywhere in the country.

Business Implications

The court did more than overturn an individual citation: it vacated OSHA’s rule addressing the recording of work-related mental illnesses. The decision does not, however, disturb employers’ remaining obligations to record covered physical injuries and illnesses.

Employers should therefore narrowly tailor any resulting policy changes. The decision also does not question the seriousness of workplace mental-health conditions or address other legal obligations relating to employee health, leave, accommodations, or workplace safety.

What Employers Should Consider Now

Employers should consider:

• Reviewing recordkeeping policies, training materials, and decision tools that incorporate 29 C.F.R. § 1904.5(b)(2)(ix).
• Identifying pending OSHA inspections, citations, or administrative contests involving work-related mental illnesses.
• Coordinating legal, occupational health, human resources, and safety personnel before changing existing recordkeeping practices.
• Evaluating historical OSHA log entries carefully because the opinion does not address whether employers should revise previously completed records.
• Monitoring further judicial or agency action concerning the vacated rule.

Conclusion

The Fifth Circuit’s decision limits OSHA’s recordkeeping authority by holding that Section 657(c)(2) does not authorize mandatory recording of work-related mental illnesses. Employers should review policies tied to the vacated provision while continuing to comply with OSHA’s remaining injury and illness recordkeeping requirements. 

Beveridge & Diamond’s Occupational Safety & Health practice group works alongside clients’ legal, EHS, and technical teams to help resolve critical enforcement, compliance, and regulatory issues relating to their facilities and operations. For more information, please contact the authors.