All Roll Calls
Yes: 61 • No: 36
New MexicoHB 662025 Regular SessionHouseWALLET
WORKERS' COMPENSATION CHANGES
Sponsored By: Pamelya Herndon (Democratic)
Signed by Governor
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 0 benefits, 0 costs, 2 mixed.
Higher case-cost advances for injured workers
New Mexico employers must advance costs for discovery—the exchange of evidence—requested by workers in workers’ compensation cases. The advance limit rises from $3,500 to $4,000 on January 1, 2027, and $4,500 on January 1, 2029. If the worker substantially wins the case, the employer pays the advanced costs. Otherwise, the employer can seek repayment under a judge-approved schedule. Apart from these advances, the party requesting discovery bears its cost. The state advisory council must review these limits by May 1, 2029, and recommend any changes by November 1, 2029.
Higher legal-fee caps for injured workers
New Mexico caps total attorney fees for one work injury or occupational disease claim at $30,000 in 2025. The cap rises to $32,000 on January 1, 2027, and $34,000 on January 1, 2029. It covers all related legal services, including paralegal and legal clerical work, regardless of how many attorneys participate. Workers and employers normally split the worker’s attorney fees equally. But workers pay all their attorney fees when the employer’s settlement offer exceeds the award; employers pay all when the worker’s offer is below the award. Parties can make settlement offers after a recommended resolution and before trial; rejected offers are withdrawn but can affect costs. An offering party must pay the other side’s later costs when its offer is not more favorable than the final order. Judges base fees only on benefits actually secured, excluding future medical benefits, and consider offer amounts and timing, the award’s present value, and good-faith participation in informal resolution. A timely written employer offer before an informal hearing also affects fee decisions when the worker later wins more. In disputes over ending or reducing disability, fees are fixed only when disability increases or the employer fails to prove its case. A separate fact-finding proceeding can support up to $5,000 above the cap for bad faith causing economic loss; bad faith includes fraud, malice, oppression, or willful or reckless disregard of rights. The party acting in bad faith pays all additional fees for that action. Only licensed attorneys generally may charge for legal services, with an exception for non-attorney agents representing employers, insurers, or the Subsequent Injury Fund. Workers can use non-attorney representatives only without paying them. For an unrepresented worker’s settlement, the tribunal can appoint an attorney to help assess fairness, with a capped, judge-set fee. Represented settlements must disclose total employer payments, and the judge-set attorney fee accounts for prior payments and limits what the attorney receives. No attorney fees can be paid before settlement or a decision. Violations carry a $50–$500 fine and up to 90 days in county jail. The advisory council must review fee caps by May 1, 2029, and report recommendations by November 1, 2029.
Sponsors & Cosponsors
Sponsor
Pamelya Herndon
Democratic • House
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
Senate vote • 3/21/2025
Final Senate Vote
Yes: 25 • No: 14
House vote • 2/19/2025
Final House Vote
Yes: 36 • No: 22
Actions Timeline
Signed by Governor - Chapter 18 - Mar. 21
3/21/2025SenatePassed in the Senate - Y:25 N:14
3/16/2025SenateSJC: Reported by committee with Do Pass recommendation
3/13/2025SenateSTBTC: Reported by committee with Do Pass recommendation
3/8/2025SenateSent to STBTC - Referrals: STBTC/SJC
2/19/2025SenatePassed in the House of Representatives - Y:36 N:22
2/19/2025HouseHJC: Reported by committee with Do Not Pass but with a Do Pass recommendation on Committee Substitution
2/11/2025HouseHLVMC: Reported by committee with Do Pass recommendation
1/29/2025HouseSent to HLVMC - Referrals: HLVMC/HJC
1/23/2025SenateSent to HPREF - Referrals: HPREF
Senate
Bill Text
Final Version
3/21/2025
SJC Committee Report 3/13/25
3/13/2025
STBTC Committee Report 3/08/25
3/8/2025
HJC Committee Report 2/11/25
2/11/2025
HJC Committee Substitute 2/11/25
2/11/2025
HLVMC Committee Report 1/29/25
1/29/2025
Introduced
1/9/2025