Is workers comp required in New Mexico?
New Mexico generally requires coverage for employers with three or more employees, and construction employers with one or more. Owners, partners and corporate officers are treated under their own rules, and some workers such as certain agricultural or domestic employees may be handled differently.
Buying coverage in New Mexico
New Mexico employers buy workers comp from private insurance companies, and businesses that are hard to place can obtain coverage through the state's residual market or a state-chartered carrier where one exists. New Mexico also has a competitive state-chartered carrier, New Mexico Mutual, that sells coverage alongside private insurers.
Who sets the rules
The New Mexico Workers' Compensation Administration oversees workers comp in New Mexico. In New Mexico, the National Council on Compensation Insurance (NCCI) provides the classification system and loss costs that insurers use to file rates.
What New Mexico employers should know
- Oil field services and construction are common New Mexico classes with higher hazard ratings.
- New Mexico has a state-created mutual insurer that writes alongside private carriers.
New Mexico facts employers ask about
The New Mexico Workers' Compensation Administration (WCA) oversees the system. Employers with three or more employees must carry coverage, and construction industry employers must carry it with one or more employees.
New Mexico Mutual, created by the legislature, competes with private carriers and writes businesses that others decline. New Mexico uses NCCI classifications. Employers also pay a quarterly per-employee workers' compensation fee, reported through the state's tax system, which funds the Administration.
The WCA's enforcement staff can order uninsured employers to stop work and assess penalties. Oil and gas services, construction and tourism are significant New Mexico industries, and contractors from Texas and Arizona working in New Mexico should confirm their policy covers work in the state.
New Mexico employers with fewer than three employees outside construction can still elect coverage, which many do when a landlord or client requires a certificate. Businesses that elect coverage are then subject to the Act in the same way as required employers.
Sources: New Mexico Workers' Compensation Administration. Rules change; confirm current requirements with the agency before you rely on them.
How premiums are calculated
As in most states, NM premium is generally the class code rate per $100 of payroll, adjusted by any experience modification, credits and state charges. The final amount is confirmed by a payroll audit after the policy period. Learn more about how workers comp rates work and preparing for an audit.
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New Mexico workers comp FAQ
Is workers comp required in New Mexico?
New Mexico generally requires coverage for employers with three or more employees, and construction employers with one or more. Rules and exceptions change, so confirm your situation with the state agency or an agent.
Who oversees workers comp in New Mexico?
The New Mexico Workers' Compensation Administration administers the workers compensation system in New Mexico.
Can I buy New Mexico workers comp from a private insurer?
Yes. Private insurers write workers comp in New Mexico, and a market of last resort is available for businesses that are hard to place.
How is workers comp priced in New Mexico?
In New Mexico, the National Council on Compensation Insurance (NCCI) provides the classification system and loss costs that insurers use to file rates. As in most states, NM premium is generally the class code rate per $100 of payroll, adjusted by any experience modification, credits and state charges. The final amount is confirmed by a payroll audit after the policy period.