What Are Workers’ Compensation Requirements in New Mexico?

Accidents and injuries can occur at any point in time in the workplace as workers go about their daily tasks. From construction sites and manufacturing plants to stores and offices, all kinds of businesses need to make sure that they are meeting the workers’ compensation requirements in New Mexico. 

It can make it possible for employees to pay medical bills and have compensation for the wages they are losing out on. Employers need to meet local legal requirements to buy compensation insurance for all of their workers so that they are protected from any injuries and illnesses that come with the job. 

Let’s take a closer look at the workers’ compensation requirements in New Mexico all businesses should implement. 

Workers' Compensation Laws in Mexico

The first law for workers’ compensation was first passed in New Mexico in 1929, called the Workers’ Compensation Act. The act makes it compulsory for all employers to make sure that their workers have compensation insurance that can provide the necessary benefit to any injured or ill workers regardless of where the liability lies. 

You will find that workers cannot sue their employer for injury liability, but they do receive wage reimbursements and medical care costs to recover properly. The Workers’ Compensation Administration (WCA) of New Mexico was created in 1986 to handle all administrative compensation needs. This ensures quicker case resolution as well as efficient delivery of the benefits to any injured parties. 

Who is Covered Under Workers’ Compensation Laws in New Mexico?

All employers with three or more workers under them need to purchase compensation insurance from their workers. This includes all organizations such as religious establishments, non-profits, charities, and of course, businesses. Employers need to take every single employee into account, which can include family members, seasonal workers, part-time workers, and owners. 

While you do have the option to include them, any partners and proprietors can be excluded from the coverage options. Any LLC members or corporate officers can also exclude themselves from the compensation if they own 10%+ of the firm. However, any officers that do exempt themselves do need to still be included in the total employee count to check how much of the coverage is necessary. 

There are special requirements outlined for construction companies too. Any construction business operating in New Mexico needs proper licenses as per the Construction Industries Licensing Act. They need to provide compensation to workers no matter how many employees they have. Even if they only have a single executive employee, they still need coverage, but such employees can also exempt themselves from this; they do need proper approval from state officials for this, though. 

There are some special rules that should be applied:

• Domestic employees and any real estate agents are exempted from the workers’ compensation requirements in New Mexico. 
• Employers don’t need to provide workers’ compensation for any independent contractors, but you must adhere to rules determining the independent contractor’s status if you hire them. 
• Ranch and farm workers are also exempted from workers’ coverage if they spend most of their work hours on growing and harvesting meat, produce, or dairy products. 
• Workers who process, pack, and transport any agricultural products need to be covered if the ranch or farm has three or more employees. 

Some special considerations are also outlined for employees on Indian reservations too:

• Tribes often require their private and tribal businesses on Indian reservations to get workers’ compensation requirements in New Mexico. 
• While the WCA in New Mexico is not allowed to enforce the compensation laws on the tribal lands, the tribal governments do enforce it. 

What Is Covered by New Mexico Workers’ Compensation Laws?

The workers’ compensation insurance offers coverage for medical bills and wage replacements for any employees who get injured at work or get ill because of work. If the worker is unable to return to work for a while because of their injuries or illness, the wage replacement can be a life-saving compensation plan. There are also options to extend the coverage benefits if the work becomes completely disable or has some sort of permanent impairment.

Where to Buy Workers’ Compensation Insurance in New Mexico?

There is a private market for workers’ compensation in New Mexico. You will find plenty of coverage options from private agencies and insurance carriers. Employers can also get self-insured as long as it is approved by the WCA in New Mexico. Employers who work in a similar or the same industry can also come together to get self-insured by the WCA as one group. Businesses operating in industries with high risks and poor records of safety who are unable to find coverage in self-insurance or voluntary markets will find options for coverage in the risk pool assigned by the state. 

Workers’ compensation requirements in New Mexico are designed to protect both the workers and the employers. Employers are protected from liability of injury and illness while employees have coverage for medical bills and wage replacements. Most employers can find quotes easily when working with independent insurance agents who will guide them on the whole process. You will be able to better secure your insurance needs to protect the business and employees when working with local agents.