New Mexico's House Bill 66, introduced on March 21, 2025, aims to reform attorney fee structures within the state's workers' compensation system. The bill sets a cap on attorney fees for legal services related to single disablement claims, establishing a maximum of $30,000 for 2025, with incremental increases to $32,000 in 2027 and $34,000 in 2029. This legislative move seeks to address rising legal costs that have burdened both claimants and employers in the workers' compensation arena.

Key provisions of the bill stipulate that attorney fees will not be considered when determining benefits, ensuring that claimants receive the full extent of their entitled compensation. The bill also allows workers' compensation judges to exceed the fee cap in cases where bad faith is demonstrated by either party, providing a safeguard for claimants who may face economic loss due to mishandling of claims.

The introduction of House Bill 66 has sparked notable discussions among lawmakers and stakeholders. Proponents argue that the bill will enhance access to legal representation for injured workers by controlling costs, while opponents express concerns that the fee caps may deter attorneys from taking on complex cases, potentially limiting claimants' access to quality legal support.

The implications of this bill extend beyond legal fees; it reflects a broader effort to balance the interests of injured workers and employers within New Mexico's workers' compensation system. Experts suggest that if passed, the bill could lead to a more equitable environment for claimants, potentially reducing the financial strain on employers as well.

As the legislative process unfolds, the future of House Bill 66 will be closely monitored, with its potential to reshape the landscape of workers' compensation in New Mexico hanging in the balance. Stakeholders are encouraged to engage in ongoing discussions to ensure that the final outcome serves the best interests of all parties involved.