HB 66: WORKERS' COMPENSATION CHANGES - New Mexico

JU substitute → Final Version · 5 edits

MODERATE

This bill amends New Mexico's workers' compensation fee restrictions, primarily increasing the maximum amount employers can advance for discovery costs and clarifying attorney fee limits. The changes affect how much money employers must pay upfront for case discovery and how attorney fees are calculated when settlements or judgments occur.

Scope change

The bill applies to all workers' compensation claims where the workers' compensation administration is involved in approving settlements or determining attorney fees.

FISCAL

Increased the maximum discovery cost advance from $3,000 to $3,500, with scheduled increases to $4,000 on January 1, 2027, and $4,500 on January 1, 2029.

REQUIREMENT

Added requirements that if a claimant substantially prevails in their case, the employer must pay all discovery costs they advanced. If the claimant does not prevail, the employer can be reimbursed for discovery costs through a judge-approved schedule.

Established an offer of judgment system where employers or claimants can make written offers before hearings. If the final award is more favorable than the offer, the other party pays the opposing party's costs incurred after the offer was made.

Added specific rules for attorney fee allocation when offers are made: if an employer's offer exceeds the final award, the employer pays 50% of the worker's attorney fees; if a worker's offer is less than the award, the employer pays 100% of the worker's attorney fees.

Clarified that workers' compensation judges can appoint attorneys to assist in settlement approvals when claimants are not represented, with fees fixed by the judge within the discovery cost limits.

JC substitute → JU substitute · 6 edits

MODERATE

This bill updates New Mexico's workers' compensation and occupational disease laws by increasing the maximum attorney fees that can be charged and raising the amount employers must advance for discovery costs. It also adds provisions for formal settlement offers similar to civil court rules and clarifies fee-sharing responsibilities.

Scope change

The bill applies to both workers' compensation claims and occupational disease disablement claims, maintaining the same scope but updating fee limits and adding new procedural rules for settlements.

FISCAL

Increased the maximum attorney fees from $22,500 to $30,000 for 2025, with scheduled increases to $32,000 in 2027 and $34,000 in 2029.

Raised the discovery cost advance limit from $3,000 to $3,500 initially, with scheduled increases to $4,000 in 2027 and $4,500 in 2029.

REQUIREMENT

Added formal offer of judgment procedures allowing parties to make settlement offers with cost-shifting consequences if offers are rejected.

Added bad faith provisions allowing judges to exceed fee limits by up to $5,000 when parties act in bad faith, with the bad faith party paying 100% of additional fees.

Clarified that attorney fees are shared equally between worker and employer unless specific settlement offer scenarios apply.

TIMELINE

Added requirement for the advisory council to review fee limits and discovery cost limits by May 1, 2029, with recommendations due by November 1, 2029.

introduced version → JC substitute · 6 edits

MODERATE

This bill amends New Mexico's workers' compensation laws to increase attorney fee caps and discovery cost advance limits, while adding new provisions for occupational disease cases. The changes expand fee restrictions to cover occupational disease claims alongside traditional injury claims and introduce stricter bad faith penalties.

Scope change

Expanded from only workers' compensation injury claims to also include occupational disease disablement claims under the New Mexico Occupational Disease Disablement Law.

FISCAL

Increased employer advance limit for discovery costs from $3,000 to $3,500 in 2025, with scheduled increases to $4,000 in 2027 and $4,500 in 2029.

Raised maximum attorney fees from $22,500 to $30,000 in 2025, with scheduled increases to $32,000 in 2027 and $34,000 in 2029.

SCOPE

Extended attorney fee restrictions and discovery cost provisions to cover occupational disease disablement cases, not just traditional workers' compensation injury claims.

REQUIREMENT

Added explicit bad faith provisions allowing judges to award additional fees (up to $5,000 extra) when insurers or employers act with fraud, malice, or willful disregard of rights.

Added new offer of judgment provisions allowing parties to make formal settlement offers with specific cost-shifting consequences if offers are rejected.

TIMELINE

Required the advisory council to review attorney fee and discovery cost limits by May 1, 2029, with recommendations due by November 1, 2029.

WORKERS' COMPENSATION CHANGES

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