On March 21, 2025, the New Mexico House of Representatives introduced House Bill 66, a significant piece of legislation aimed at reforming aspects of the state's Workers' Compensation Act. The bill seeks to address ongoing concerns regarding the financial burdens faced by both employers and claimants in the workers' compensation system, particularly in relation to discovery costs and attorney fees.
One of the key provisions of House Bill 66 stipulates that any discovery costs advanced by an employer must be reimbursed if the claimant does not substantially prevail in their claim, as determined by a workers' compensation judge. This provision aims to create a more equitable financial landscape for employers while also ensuring that claimants are not unduly burdened by upfront costs. Additionally, the bill outlines a mechanism for determining reasonable attorney fees based on the amount offered by the employer prior to the informal hearing, which could potentially incentivize earlier settlements and reduce litigation costs.
The introduction of this bill has sparked notable debates among lawmakers and stakeholders. Proponents argue that the changes will streamline the claims process and reduce unnecessary expenses, ultimately benefiting both workers and employers. Critics, however, express concerns that the bill may inadvertently discourage legitimate claims by imposing financial risks on claimants who may fear losing their cases and facing substantial costs.
The implications of House Bill 66 extend beyond the immediate financial considerations. By potentially altering the dynamics of how claims are handled, the bill could influence the overall accessibility of workers' compensation for injured workers in New Mexico. Experts suggest that if the bill passes, it may lead to a shift in how attorneys approach cases, possibly resulting in fewer claims being filed or a greater emphasis on pre-litigation negotiations.
As the legislative process unfolds, stakeholders will be closely monitoring the bill's progress and any amendments that may arise. The outcome of House Bill 66 could have lasting effects on the workers' compensation landscape in New Mexico, shaping the experiences of both employers and employees in the state for years to come.