Sole Proprietor: Excluded from coverage/may elect to be included. When included the rating payroll used is $38,100 as of 1-1-12, $38,800 as of 1-1-2013, $39,500 as of 1-1-2014. $39,700 as of 1-1-2015. $41,400 as of 1-1-2017.
Partners: Excluded from coverage/may elect to be included. When included the rating payroll used is $38,100 as of 1-1-12, $38,800 as of 1-1-2013, $39,500 as of 1-1-2014. $39,700 as of 1-1-2015. $41,400 as of 1-1-2017.
Corporate Officers: Included in coverage/may elect to be exempt - Employees of a corporation who are also officers or executives of the corporation may choose to exempt themselves from coverage. This exemption is limited to the
chairman of the board, president, vice president, secretary, treasurer or other executive officer; and only if that employee owns 10 percent or more of the stock of the corporation. These individuals can exempt themselves by filing an Executive Employee Exemption form with the WCA. When included the rating payroll used is banded between a minimum of $39,000 and a maximum of $150,800 as of 1-1-12, $39,000 / $156,000 as of 1-1-2013, $39,000 / $156,000 as of 1-1-2014. $39,000 / $161,200 as of 1-1-2015. $800 / $3,200 per week as of 1-1-2017.
LLC Members: Included in coverage/may elect to be exempt - Executive employees of a limited liability company may also exempt themselves under this provision. The exemption applies to members who have a 10 percent or greater
ownership in the limited liability company. When included the rating payroll used is banded between a minimum of $39,000 and a maximum of $150,800 as of 1-1-12, $39,000 / $156,000 as of 1-1-2013, $39,000 / $156,000 as of 1-1-2014. $39,000 / $161,200 as of 1-1-2015. $800 / $3,200 per week as of 1-1-2017.
Special Notes: All employers who employ three or more
workers are required by law to have workers’ compensation coverage, except:
all employers engaged in activities
required to be licensed under the
Construction Industries Licensing Act must
have coverage, regardless of the number
coverage is not required for household
coverage is not required for real estate
coverage is not required for farm and
For the purpose of determining “three or
more,” every person who does the work of
the business entity is considered an
employee of the business. This includes the
owner of the business, if the owner works in
In counting the number of employees of a
corporation or limited liability company to
determine whether it must have coverage,
officers or executives who have exempted
themselves must be counted.
No special exemption is made for family
members who are employees. Coverage is
required for family members just as for any
other employees. If family members are
executive employees, they may exempt
themselves if they qualify as described
Part-time workers must be counted for the
coverage requirement. An employer who has
three part-time workers is required to have
Non-profit, charitable and religious
organizations are not exempt. They must
have coverage and should follow the same
safety practices as any other employer.
Farm and ranch laborers are specifically
exempted from mandatory coverage if they
spend the majority of their time in actual
growing and harvesting produce, meat or
dairy products. However, other workers, such
as those who pack, process and transport
farm produce, are required to be covered if
the farm or ranch employs three or more
workers. Farm and ranch employers who use both farm and non-farm labor may wish to
seek advice on the effect of this ruling for
If you are operating on an Indian
reservation, does Indian sovereignty make
you immune from the New Mexico
workers’ compensation law? Generally,
the answer is no.
The general guideline is that tribal
sovereignty primarily applies to economic
enterprises of the tribe, particularly on tribal
land. Numerous tribes have chosen to have New
Mexico workers’ compensation coverage for
their tribal enterprises. Other tribes have
chosen to require private businesses located
on their land to provide New Mexico workers’
compensation coverage. This coverage
protects the workers and greatly reduces
risks for the employer. The New Mexico WCA does not have
enforcement authority on tribal land.
However, the tribal government may choose
to enforce the requirement.
All employers covered by the New Mexico Workers' Compensation Act must pay the workers' compensation personnel assessment fee. The fee is an administrative payment to the state (a tax), and does not provide insurance coverage.
Experience Rating Eligibility: Employers in New Mexico will receive an experience modification rate or EMR when they meet one of these triggers:
$9,000 in policy premium is generated during the last year or last two years.
$4,500 is the average policy premium generated for more than two years.
New Mexico Subrogation: State Statute 52-5-17 is the statute that deals with workers compensation subrogation for the State of New Mexico. New Mexico 52-5-17 is titled Subrogation. We cannot provide you with a direct link to this statute but follow these instructions and you can view this statute online. Go to the link we've provided below and click it. From the menu on the left select "NMSA 1978" then scroll down and select "New Mexico Statutes Annotated 1978." Scroll down and select item 52, "Workers Compensation." Select "Worker's Compensation Division, 52-5-1 through 52-2-22. Scroll down to 52-2-17, select it and read the statute.
New Mexico has removed free access to the Subrogation Statute mentioned above. It is no longer available to the citizens of New Mexico without subscribing and paying a $60/month fee. What's up with that New Mexico? Why are your statutes not available for free public access?
New Mexico While Workers Working In Other States; Other States Workers Working In New Jersey, Extraterritorial, Reciprocity and Non-Compliance: When New Mexico workers are working temporarily in another state, workers compensation coverage for that worker is then governed by the extraterritorial provisions found in New Mexico statutes. When or if allowed it's extraterritorial provisions that allow benefits for an injured worker to apply as if the worker was in their primary state. You must be cautious because not all states provide Extraterritorial Provisions. It's reciprocity that governs how New Mexico workers compensation coverage responds for a worker from another state who is working temporarily in New Mexico and you'll find New Mexico requires specific agreements with other jurisdictions for reciprocity to apply. Compliance of workers compensation laws varies from state to state and it is important for an employer with workers performing duties in other states to be aware of the specific state rules that govern their coverage. We've provided the below general information about extraterritorial and reciprocity as a basic guide. Please contact your New Mexico state authority with your specific questions concerning this topic!
Duration: Does not apply
Allowed: Not automatic. Requires special agreements between specific jurisdictions.
Specific Statute: 52-1-64, Extraterritorial Coverage; IMPORTANT NOTE: Free access to this statute is no longer availabe. New Mexico now provides access only with a subscription and monthly $60 fee. What's up with this? Shouldn't this information be available to the public?
Specific Statute: 52-1-65, Credit for benefits furnished or paid under laws of other jurisdictions; SEE ABOVE!
Specific Statute: 52-1-66,Nonresident employers; SEE ABOVE!
Specific Statute: 52-1-67,Locale of employment; definitions; SEE ABOVE!
Specific Statute: 52-1-68,Reciprocal recognition of extra-territorial coverage with other jurisdictions; SEE ABOVE!
For More Information Contact: New Mexico Workers' Compensation Administration shown below. Be sure to ask them why this information is not available free on line.
Didn't find what you're looking for? Search here for more about New Mexico rules:
Information on this page is provided only as a reference. While we strive to mantain accurate information on this site please realize workers compensation laws are complicated and subject to change at any time. No warranty as to the accuracy or completeness of this information is provided or to be implied. You must verify this data before use with the individual governing authority for this state. If you need help with a workers compensation problem or have a specific situation or question please contact our office. Otherwise please consult your states governing authority or an attorney in your state of residency for assistance.