Claims adjuster sues State Farm for firing during mental health leave

She alleges her supervisor assured her the job was safe — then fired her weeks later

Claims adjuster sues State Farm for firing during mental health leave

State Farm allegedly fired a claims adjuster on approved mental health disability leave, weeks after her supervisor assured her the job was safe.

The case, Wiley v. State Farm Mutual Automobile Insurance Company (No. 3:26-cv-00723-X, N.D. Tex.), was filed on March 5, 2026. It lays out a timeline that alleges a chain of HR failures.

Sabrina M. Wiley worked as an automobile accident claims adjuster for State Farm. The filing describes her as a strong performer whose reviews were more than satisfactory, who trained fellow adjusters, and who was asked to interview for management roles on more than one occasion.

In April 2024, Wiley learned that her son had died by suicide. She immediately took personal leave. She had also been scheduled for surgery to repair a diaphragmatic hernia, which was performed on May 1, 2024. Her short-term disability was approved through the parties' disability insurer, New York Life Group Benefits, with a six-week recovery period.

Yet according to the filing, State Farm sent Wiley a notice requiring her to return by May 15 — about two weeks after surgery. Her attorney had to send correspondence to the disability insurer stating that she had not been released by her treating physician and should not have received a return-to-work notice.

While recovering, Wiley sought treatment for the psychological effects of her son's death. A psychiatrist diagnosed her with PTSD and severe depression, and her short-term disability was subsequently approved for those conditions as well.

What followed, the lawsuit alleges, was a stream of phone calls, text messages, and emails from State Farm pressing her about when she would come back — all while she was on approved leave. Her duties included reviewing photographs and files from auto accidents resulting in fatalities, and the filing states that the thought of returning to those duties while grieving only worsened her condition.

By December 2024, Wiley had exhausted her short-term disability. The lawsuit says the ongoing contact from her employer left her unable to mentally and physically heal, and her treatment team could not clear her to return. She transitioned to long-term disability starting January 15, 2025.

Before making that move, the filing says, Wiley's supervisor reassured her that her position with the company was not in jeopardy. On February 15, 2025 — just weeks later — she received an email from that same supervisor informing her she was terminated. No warning. No discussion about accommodation. No indication her job had been at risk.

The case raises claims under the Americans with Disabilities Act and the Family Medical Leave Act, including disability discrimination, hostile work environment, and retaliation. Wiley is seeking damages and a jury trial. No determination has been made on the merits of the case, and State Farm has not yet responded.

 

LATEST NEWS