Small businesses and mental health: How to prepare for a crisis at work

Oct. 10 marks World Mental Health Day, a great opportunity to review your business's emergency plan. For small businesses, that plan can slip through the cracks because it doesn't feel important enough, but preparing before an incident is key to staying in good legal standing.

Mental health crises can present in many different ways. An employee may say something that suggests they are thinking about harming themselves or someone else. They may express feeling unable to cope or stay safe. They may experience severe distress that prevents them from continuing to work or communicating normally. Most business owners want to help but don’t know how. They may not know what's appropriate to ask, what to document, or where their legal responsibility begins and ends.

The right response depends on the circumstances, especially whether there appears to be an immediate safety concern. Below, Rocket Lawyer explains what small business owners need to know to prepare for a mental health crisis.

Mental Health Might Catch Small Business Owners Off Guard

Most small businesses have a plan for a workplace injury or a fire drill. They will know what to do when the time comes and aren’t worried about the process of handling these situations. Far fewer businesses have thought through what to do when the "emergency" is a mental health crisis. Without a plan, you or your managers can unintentionally make a difficult moment worse for the employee. You might also mishandle the situation (asking the wrong questions, documenting incorrectly, or treating every situation the same way), which can, in turn, create legal exposure.

Owners often assume they'd know what to do in these critical moments, but employees don't always share that confidence in how their workplace would actually respond. That gap between how prepared owners think they are and how prepared employees feel their workplace is worth paying attention to. By preparing documentation, you make your business a safer place to work.

What Preparing For a Mental Health Crisis Looks Like

A crisis at work can take different forms, and each calls for a slightly different response:

• A visible emotional moment (crying, panic/overwhelm, completely shutting down) usually calls for patience and a simple check-in. Move the conversation somewhere private and ask whether they need help or some time away from the immediate situation. As an employer or manager, you can simply ask, “Would it help to step outside for a few minutes?”
• A concerning comment about hopelessness or not wanting to be here needs to be taken seriously and escalated. Follow your workplace response plan and focus on the employee's immediate safety rather than assessing or diagnosing their mental health. If you or your employee needs help, call the 988 Suicide & Crisis Lifeline (call or text 988 in the U.S.).
• A safety concern (if the employee's words or actions suggest immediate danger to themselves or others) shifts this from an HR moment to a safety response. Call 911 and don’t leave the person alone if it's safe to stay with them.

The right response isn't one-size-fits-all. Depending on the situation, your actions should change. That's why having a basic response plan in place before a difficult situation arises matters.

Questions to Ask About Mental Health and the Workplace

Before a mental health crisis might occur, learn if your business is prepared by asking yourself a few key questions:

• Do we have any kind of plan for this, or would we be improvising? Who on our team would take the lead if this happened tomorrow? Is this documented somewhere?
• What can we ask the employee, and what should we avoid asking? Are we clear on the difference between checking in and prying into a medical diagnosis?
• Are we documenting these situations appropriately? What belongs in a file, and what should stay a private, human conversation?
• When does a crisis shift from a personal matter to a safety issue? Would our team know the signs that mean it's time to involve emergency services? Do we have the numbers for these services readily available?

What to Do Next

1. Talk to your team now, before something happens. A short conversation about responding calmly and privately goes a long way.
2. Develop a basic response framework you can adapt, something simple your managers can actually follow under pressure.
3. Review how you document sensitive situations. Make sure notes are factual and appropriate, not speculative about someone's mental health.
4. Talk to an attorney about where documentation, accommodation, and privacy obligations intersect for a business of your size.

A simple plan means that when something happens, you can focus on the person in front of you, not on figuring out what to do.

World Mental Health Day is a good moment to think about mental health. If you or someone you work with is struggling, consider reaching out to a mental health professional or a trusted resource.

This story was produced by Rocket Lawyer and reviewed and distributed by Stacker.