House Bill 66, introduced by the New Mexico House of Representatives on March 21, 2025, aims to reform attorney fee structures within the state's workers' compensation system. The bill proposes a gradual increase in the maximum allowable attorney fees for legal services related to workers' compensation claims, starting at $30,000 in 2025 and rising to $34,000 by 2029. This change seeks to address concerns about the financial burdens placed on injured workers and employers during the claims process.

Key provisions of the bill include a cumulative limitation on attorney fees for all legal services rendered in relation to a single accidental injury. Notably, the bill allows for exceptions where a workers' compensation judge can exceed the maximum fee if there is a finding of bad faith by any party involved in the claim. This bad faith is defined as conduct that demonstrates fraud, malice, or a reckless disregard for the rights of the worker or employer, with a cap on additional fees not exceeding $5,000.

The introduction of House Bill 66 has sparked debates among lawmakers and stakeholders. Proponents argue that the bill will provide necessary protections for injured workers, ensuring they are not overburdened by legal costs while navigating the claims process. Critics, however, express concerns that the fee caps may discourage attorneys from taking on workers' compensation cases, potentially limiting access to legal representation for claimants.

The implications of this bill are significant, as it seeks to balance the interests of injured workers and employers while addressing the broader issues of legal representation in workers' compensation claims. If passed, House Bill 66 could reshape the landscape of workers' compensation law in New Mexico, influencing how claims are handled and the financial dynamics between claimants and their legal representatives.

As the legislative session progresses, further discussions and potential amendments to the bill are expected, with stakeholders closely monitoring its impact on the workers' compensation system and the rights of injured workers in New Mexico.