On March 21, 2025, the New Mexico House of Representatives introduced House Bill 66, a legislative proposal aimed at reforming aspects of the state's Workers' Compensation Act. The bill seeks to address concerns regarding attorney fees and the costs associated with discovery in workers' compensation claims.

The primary purpose of House Bill 66 is to establish clearer guidelines for attorney fees in cases where claimants are represented. Under the proposed legislation, workers' compensation judges will have the authority to determine reasonable attorney fees based on the total settlement amount agreed upon by the employer and the claimant. This provision aims to ensure that attorney fees remain fair and transparent, preventing excessive charges that could burden injured workers.

Key provisions of the bill include stipulations that the employer must state the total settlement amount in the settlement papers when a claimant is represented by an attorney. Additionally, the bill outlines that the costs of discovery—investigative processes necessary for building a case—will be borne by the party that requests it. However, if the claimant requests discovery, the employer is required to advance costs up to a specified limit, which will gradually increase over the next few years.

Notably, the bill has sparked discussions among lawmakers and stakeholders regarding its potential impact on both claimants and employers. Proponents argue that the reforms will enhance fairness in the workers' compensation system, making it more accessible for injured workers to seek legal representation without the fear of exorbitant fees. Conversely, some opponents express concerns that the increased costs for employers could lead to higher insurance premiums, ultimately affecting businesses across the state.

The economic implications of House Bill 66 are significant, as it seeks to balance the interests of injured workers with those of employers. Experts suggest that if passed, the bill could lead to a more equitable system that encourages injured workers to pursue legitimate claims while maintaining a sustainable environment for businesses.

As the legislative process unfolds, House Bill 66 will likely continue to be a focal point of debate, with potential amendments and discussions shaping its final form. The bill's progress will be closely monitored, as its outcomes could have lasting effects on New Mexico's workers' compensation landscape.