New workers' compensation fees set to rise starting July 2025

In the heart of New Mexico's legislative chambers, a pivotal discussion unfolded on April 7, 2025, as Senate Bill 535 was introduced, aiming to reshape the landscape of workers' compensation in the state. This bill proposes a structured increase in fees paid by employers, a move that has sparked both support and concern among lawmakers and business owners alike.

At its core, Senate Bill 535 seeks to adjust the workers' compensation fees over a span of several years. Starting July 1, 2025, the fee will rise to $2.25 per employee, gradually increasing to $2.50 by July 1, 2033. This incremental approach is designed to bolster the Workers' Compensation Administration Fund, which is crucial for managing the state's workers' compensation system. The bill stipulates that a portion of these fees—specifically, thirty cents per employee—will be allocated to the Uninsured Employers' Fund, ensuring that protections extend to workers whose employers fail to provide coverage.

The implications of this bill are significant. Proponents argue that the increased fees are necessary to maintain the integrity and efficiency of the workers' compensation system, which has faced financial strains in recent years. They emphasize that a well-funded administration can better serve injured workers and ensure timely benefits. However, opponents raise concerns about the financial burden on small businesses, fearing that higher fees could lead to job cuts or reduced hiring.

Debates surrounding the bill have highlighted the delicate balance between protecting workers and supporting economic growth. Some lawmakers have proposed amendments to mitigate the impact on small businesses, suggesting tiered fee structures based on company size or industry. Yet, these amendments have met with mixed reactions, complicating the path forward for the bill.

As the legislative session progresses, the future of Senate Bill 535 remains uncertain. Experts suggest that if passed, it could set a precedent for how states manage workers' compensation funding, potentially influencing similar legislation across the country. The outcome will not only affect employers and employees in New Mexico but could also resonate in broader discussions about labor rights and economic policy.

In the coming weeks, as discussions continue and amendments are debated, the fate of Senate Bill 535 will be closely watched. It stands as a testament to the ongoing struggle to balance the needs of workers with the realities of business operations, a challenge that resonates far beyond the walls of the state capitol.