Introduction
Worker’s Compensation is one of the most important protections that workers have within the scope of their employment. Although workers’ compensation is generally understood to help workers cover the costs of injuries sustained while participating in their occupation, the specifics of the law are less well known. In this article, we will be going over what worker’s compensation is, who can and cannot receive worker’s compensation, and which employers must provide workers compensation to their workers upon their injury while participating in their occupations.
The Ins and Outs of New Mexico’s Worker’s Compensation Act
The Workers’ Compensation Act (WCA) is the governing law for all matters related to workers compensation within the State of New Mexico. The WCA can be found under Chapter 52 of the New Mexico Statutes Annotated (NMSA), which you can access to from NMOneSource.com. As stated under the NMSA §52-1-2, almost any employer that employs three or more workers, “shall become liable to and shall pay to any such worker injured by accident arising out of an in the course of employment and, in case of his death being occasioned thereby, to such person as may be authorized by the director of appointed by a court to receive the same for the benefit of his dependents, compensation in the manner and amount at the times required by the WCA.” In another way, the WCA provides that an employer must provide an injured worker with compensation if that injury occurred while the worker was participating in their employment. The types of workers and employers that apply to the WCA are defined more throughout the rest of the article.
One of the major creations under the WCA was the Workers Compensation Administration, a governmental advisory council that meets annually and issues a report to the governor that recommends the adoption of rules and legislation regarding the WCA. The Worker’s Compensation Administration helps workers and employers interpret and define the WCA, wherein their website can be accessed at workerscomp.nm.gov. The Worker’s Compensation Administration helps update and regulate the WCA and how it provides protections to workers.
Any Person Who Enters into The Employment Under an Employer is Considered a Worker
Under the Workers Compensation Act, almost all types of workers are covered. As stated under §52-1-16, a “worker” means “any person who has entered into the employment of or works under contract of service or apprenticeship with an employer, except a person whose employment is purely casual and not for the purpose of the employers trade or business.” The act goes on forth to say that the term “worker” and the term “employee” are interchangeable and shall include the singular and plural of both sexes.
There is a major exception to the WCA’s definition of worker, which is that a “qualified real estate salesperson” is not considered a worker. For a person to be considered a “qualified real estate salesperson”, the individual must:
1) Be a licensed real estate person, associate broker or broker under contract with a real estate firm;
2) Receives substantially all of his remuneration, for services performed as a qualified real estate salesperson in direct relation to sales or other output; and
3) Performs services pursuant to a written contract between himself and the person for who the services are performed, and the contract provides that the individual will not be treated as an employee with respect to such services.
If you are not considered a qualified real estate salesperson, then you are most likely considered a worker covered under the WCA. This means owners can be considered “workers” under the act, as well as independent contractors. For more information regarding whether you apply as a worker under the WCA, please consult your business attorney.
Almost Every Type of Employer Must Provide Workers Compensation to Their Workers
As stated within the New Mexico Statutes Annotated §52-1-2:
“The state and each county, municipality, school district, drainage, irrigation or conservancy district, public institution and administrative board thereof employing workers, every charitable organization employing workers and every private person, firm or corporation engaged in carrying on for the purpose of business or trade within this state, and which employs three or more workers… shall become liable to and shall pay to any such worker injured by accident arising out of and in the course of his employment and, in case of his death being occasioned thereby, to such person as may be authorized by the director or appointed by a court to receive the same for the benefit of his dependents, compensation in the manner and amount at the times required in the Workers’ Compensation Act.”
In other words, all employers who employ at least three (3) workers will be held liable and shall pay their workers compensation for injuries that arise from an accident that occurred within the course of their employment. There are some exceptions to this overarching rule. Those exceptions are:
1) If the employer is licensed under the provisions of the Construction Industries Licensing Act, that employer must give Workers Compensation to all employees; regardless of the number of workers the employer employees.
2) The Workers Compensation Act does not apply to the employers of private domestic servants and farm and ranch laborers, unless the employer of those specific workers elects to be subject under the WCA.
3) An executive employee (i.e. chairman of the board, president, secretary, or treasurer if they own ten percent or more of the business stocks) of a professional or business corporation or limited liability company, who is employed as a worker, may affirmatively elect not to accept the provisions of the WCA.
If you are an employer, and you have three (3) or more workers employed under you, and you do not fit within the above exceptions, then you most likely have to provide workers compensation to their workers, for their potential injuries that arose out of their course of their employment.
Conclusion
The Worker’s Compensation Act is the governing law for the State of New Mexico. Its main focus is to support workers with compensation from their employers for injuries that arise out of and in the course of their employment. Almost all types of workers and employers are subject to the WCA. If you have any questions regarding the Workers Compensation Act and how it applies to you, please consult with your business attorney.
