Employers in New Mexico have a legal obligation to provide workman’s compensation benefits to their employees in case of an on-the-job injury or illness. However, navigating the complex and ever-changing regulations related to workman’s compensation can be challenging for employers. Thus, this comprehensive guide aims to provide employers with a thorough understanding of workman’s compensation. By following this guide, employers can ensure that they are meeting their obligations while also protecting their employees and their businesses.

Who is required to have workman’s comp?

In New Mexico, businesses with three or more employees, including part-time and seasonal workers, must have workers’ compensation insurance. Even businesses with only one employee need to have workers’ compensation insurance if required to be licensed by the state’s Construction Industries Licensing Act. Certain exceptions apply, including household servants and workers covered by federal programs. LLC members or corporate officers owning less than ten percent of the company are exempt from WC coverage, while those owning ten percent or more must be counted as employees, but can choose to exempt themselves.

Where can you get workers’ comp insurance?

In New Mexico, you can get workman’s compensation insurance through private insurance companies. If your business is not able to get coverage through private insurers, you can get it through the New Mexico Insurance department.

What do you need to do if an employee gets hurt?

If an employee gets injured, you need to inform the New Mexico workman’s comp provider within 72 hours of learning about it. You have a right to choose the doctor the employee will see. So make sure to tell the employee about that doctor right away. If the injury results in more than 7 days of lost work that too within 10 days, you need to file an Employer’s First Report of Injury or Illness from the WCA.

What if you don’t have workman’s comp?

If you don’t have workers’ compensation insurance, you may need to pay penalties. Moreover, you might be prohibited from conducting business. The penalty can go up to $1000 per day. You can be held liable for WC payments made to employees from the state’s Uninsured Employers’ Fund including a penalty of 15 to 50% of those amounts along with interests and fees.

What if you don’t think that your employee has a valid claim?

When it comes to workman’s compensation claims, initial decisions are typically made with the involvement of your WC insurer. It’s important to note that you’re required to submit the FROI form, even if you wish to challenge the employee’s claim. If you want to dispute a claim, you can file a complaint with the WCA, and the first step will be mediation. If you’re not satisfied with the outcome of mediation, you can appeal for a formal hearing before a judge in the WCA’s administrative court. Further appeals can be made within the state trial and appellate court system, depending on the circumstances.

With this, we are ending this informational post here. we hope that you find it helpful however if you still have any more doubts or concerns don’t hesitate to get in touch with the experts right away.