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New Mexico — the Land of Enchantment — is brimming with distinct charm and a vibrant tapestry of cultures. The state’s diverse economy creates prospects for companies in various sectors to flourish. Ensuring reliable workers' compensation insurance is essential for protecting your business and its employees.
Workers' compensation is a state-mandated insurance program for employers with three or more employees. Policies provide medical and financial protection for employees who suffer work-related injuries or illnesses.
Without workers’ compensation, the cost of medical treatment for an employee’s work-related injury or illness could become the responsibility of your business.
The New Mexico Workers' Compensation Administration oversees the workers’ comp law in the state. The law requires employers with three or more employees to be covered by an active workers’ compensation insurance policy.
Businesses can obtain workers’ comp coverage through a partner like EverPeak Insurance. Alternatively, companies that meet the state’s requirements may also apply to be self-insured.
Employees can verify online if their employer has coverage.
Policies include protection for full and part-time workers.
Some exemptions from workers’ comp in New Mexico include:
Workers' compensation covers a range of work-related injuries and illnesses, including physical injuries resulting from an accident and occupational diseases developed over time due to job conditions.
Workers’ comp insurance provides three types of benefits for work injuries:
New Mexico workers’ compensation benefits include:
Temporary Total Disability (TTD) Benefits may pay up to 66 2/3% of a worker’s average weekly wage. As of 2024, New Mexico’s workers’ comp weekly benefit amount maximum is $1,041.79.
In the event of a work-related injury or illness:
Using the Notice of Accident form, employees in New Mexico should report their injury to their employer within 15 days of the accident or injury.
The employee should immediately seek medical attention.
Once notified of the injury, employers should sign and date the Notice of Accident form and keep one copy.
Employers may also be considered to have received notice in other ways, such as witnessing the accident.
The employer’s workers' compensation insurer should be notified about the accident or injury within 72 hours.
Additionally, employers should follow up with their workers’ comp provider to confirm if the insurer submitted a First Report of Injury (FROI) with the Workers' Compensation Administration.
If an employer’s insurance provider accepts the claim, the worker may begin receiving benefits to cover medical expenses and lost wages.
Following their recovery, a worker is expected to resume work safely. If a work injury has left an injured employee unable to do any type of work, the employee might be entitled to permanent disability benefits.
In New Mexico, the employer is expected to designate a medical provider for the employee.
Workers’ compensation benefits go into effect after eight days of the employee being out. These days do not have to occur consecutively. The initial seven days of non-work status are not eligible for payment unless your absence exceeds four weeks
To dispute the result of a workers’ compensation claim, an employee can file a complaint with the New Mexico Workers' Compensation Administration.
Employers in New Mexico with one or more employees must carry workers' compensation insurance or qualify for self-insurance. Compliance with this requirement is essential to protect both the employer and employees.
When selecting a workers' compensation insurance provider, consider factors such as the provider's experience in the industry, financial stability, coverage options, claims process, customer service, and cost.
We recommend requesting multiple quotes and comparing the offerings before making a decision.
Covering your business and employees with a trusted insurance partner — like EverPeak — brings peace of mind so you can focus on your bottom line.
In New Mexico, employers who fail to present proof of workers’ compensation coverage to the Employer Compliance Bureau or fail to comply with the requirements of the law can face a WCA Enforcement Bureau hearing.
If coverage is not obtained, a temporary restraining order (TRO) is issued, and the business is shut down.
However, a hearing is not always necessary for a TRO. If workers are at risk, an emergency injunction can be sought.
In most cases, policies bar employees in New Mexico from suing their employers for work-related injuries or illnesses. The workers' compensation system provides an exclusive remedy, meaning that employees typically cannot file a lawsuit against their employers. Instead, they must pursue a workers' compensation claim to receive benefits for their injuries or illnesses.
Generally, a business’s workers’ compensation policy does not cover independent contractors in New Mexico. Workers' compensation laws typically apply to employees rather than independent contractors.
However, it's important to note that the classification of a worker as an independent contractor or an employee can be complex, and misclassification can lead to legal disputes. If unsure whether an independent contractor should be treated as an employee, seek legal guidance.
Employers have 72 hours to report the injury to their insurer. Prompt reporting helps ensure the necessary steps are taken to initiate the workers' compensation claims process.
Employees can verify online if their employer has coverage.