On March 21, 2025, the New Mexico House of Representatives introduced House Bill 66, a significant piece of legislation aimed at reforming the state's workers' compensation system. The bill seeks to address issues related to the handling of claims, particularly concerning bad faith actions by insurers and employers.

One of the key provisions of House Bill 66 is the definition of "bad faith," which encompasses conduct that includes fraud, malice, or willful disregard for the rights of employees or employers. The bill stipulates that any determination of bad faith will be made by a workers' compensation judge through a separate fact-finding process. If a party is found to have acted in bad faith, they will be responsible for covering all additional attorney fees awarded to the prevailing party in such cases.

Additionally, the bill proposes that attorney fees for claimants will be shared equally between employees and employers, with specific exceptions outlined in the legislation. It also establishes that only licensed attorneys may receive fees for legal services related to claims under the New Mexico Occupational Disease Disablement Law, thereby tightening regulations around legal representation in these matters.

The introduction of House Bill 66 has sparked notable discussions among lawmakers and stakeholders. Proponents argue that the bill will enhance accountability within the workers' compensation system and protect the rights of employees. However, some opponents express concerns that the shared attorney fee structure may place an undue financial burden on employers, potentially leading to increased costs for businesses.

The implications of this bill are significant, as it seeks to balance the interests of employees and employers while ensuring fair treatment in the claims process. If passed, House Bill 66 could lead to a more transparent and equitable workers' compensation system in New Mexico, with potential ripple effects on the state's economy and labor market.

As the legislative process unfolds, stakeholders will be closely monitoring the bill's progress and any amendments that may arise during discussions. The outcome of House Bill 66 could reshape the landscape of workers' compensation in New Mexico, making it a critical issue for both employees and employers in the state.