This study helps establish how electronic performance monitoring may influence employee physical strain levels through job design. It identifies job design variables which differ between monitored and non-monitored employees in the telecommunications industry (using discriminant function analysis). These variables’ relationships to psychological stress outcomes were examined using multiple regression analysis. A group of 704 employees in three job categories (telephone operator {n=228}, customer service representative {n=230}, and clerk {n=246}) responded to a questionnaire survey mailed to their residence. Four hundred thirty-four of the respondents were monitored and 264 were not. The results indicated that the monitored employees had significantly higher levels of reported psychological stress than the non-monitored employees. The discriminant function analysis of job design variables showed that a variety of job design factors discriminated between monitored and non-monitored employees. High levels of workload, few lulls between periods of high workload, high levels of career/future ambiguity, poor relationships with supervisors, as well as low levels of task meaningfulness and completeness were significant predictors of psychological stress outcomes (tension, anxiety, depression and fatigue).