Former claims adjuster sues State Farm over disability leave firing
A former State Farm claims adjuster is suing the insurance giant, alleging she was fired while on approved disability leave for PTSD and depression.
Sabrina M. Wiley filed her lawsuit on March 5, 2026, in the US District Court for the Northern District of Texas, Dallas Division (Wiley v. State Farm Mutual Automobile Insurance Company, Case No. 3:26-cv-00723-X). The suit raises claims under the Americans with Disabilities Act and the Family Medical Leave Act, and puts a spotlight on how one of the country's largest insurers managed an employee's medical leave.
According to court filings, Wiley worked as an automobile accident claims adjuster at State Farm, where her performance reviews were described as more than satisfactory. She trained fellow adjusters and was asked on more than one occasion to interview for management positions.
In April 2024, Wiley's son died by suicide. She took personal leave and, in May 2024, underwent surgery for a diaphragmatic hernia. Her short-term disability was approved through New York Life Group Benefits, with a six-week recovery period. But according to the filing, State Farm directed her to return to work by May 15 - before her treating physician had cleared her.
While still recovering, Wiley was diagnosed with post-traumatic stress disorder and severe depression connected to her son's death. Her short-term disability was subsequently approved for those conditions as well. The lawsuit describes a pattern of ongoing contact from State Farm during her leave — phone calls, text messages, and emails - pressing her on when she planned to return.
This is where the case carries particular weight for insurance professionals. Wiley's day-to-day work involved reviewing photographs and files from auto accidents resulting in fatalities. According to the filing, the prospect of returning to that kind of work while still dealing with her son's death only worsened her condition. By December 2024, she had exhausted her short-term disability and transitioned to long-term disability starting January 15, 2025.
Before making that move, the filing states, her supervisor assured her that her position was not in jeopardy. About a month later, on February 15, 2025, Wiley received an email notifying her that she had been terminated - with no prior warning, no offer of accommodation, and no signal that her job had been at risk.
The suit seeks damages for lost wages, bonuses, and benefits, as well as punitive damages and attorney fees. A jury trial has been requested. No determination has been made on the merits of the case, which remains in its early stages.
For carriers and claims leaders, this case is worth tracking. It raises pointed questions about how insurers handle leave for their own people - especially employees whose work regularly exposes them to traumatic material. It also underscores the tension that can surface when disability leave approved by a third-party insurer collides with an employer's return-to-work expectations.
As the industry continues to wrestle with workforce well-being and retention, this lawsuit serves as a sharp reminder that managing employee medical leave is not just an HR concern - it is a liability question.
