Who Needs Workers' Comp in New Mexico?
New Mexico requires employers with three or more employees to carry workers' compensation insurance under the New Mexico Workers' Compensation Act (NMSA Chapter 52). Construction employers with one or more employees must carry coverage regardless of total headcount. Corporate officers and LLC members count toward the three-employee threshold.
Penalties for Non-Compliance
New Mexico penalties include fines up to $1,000 per day of non-compliance, criminal misdemeanor charges, and personal liability for all employee injury costs. The New Mexico Workers' Compensation Administration enforces compliance and can issue penalties and stop-work orders.
How New Mexico Rates Work
New Mexico uses NCCI class codes and is a competitive rating state. New Mexico Mutual Casualty Company is a prominent carrier and serves as an option for employers who have difficulty finding private market coverage. The state's economy is heavily influenced by oil and gas, government, and construction, which affect rate structures.
Common New Mexico Class Codes
| Code | Description | Risk Level |
|---|---|---|
| 8810 | Clerical Office Employees | Low |
| 8742 | Outside Salespersons | Low |
| 1320 | Oil or Gas Lease Operator | Medium |
| 9101 | Restaurant NOC | Medium |
| 5403 | Carpentry NOC | Medium-High |
| 5606 | Contractors — General | Medium-High |
| 5551 | Roofing — All Kinds | High |