Understanding the Workers’ Compensation Laws in New Mexico

Workers’ compensation laws in Mexico are essential to understand to foster a good working environment. 24,000 employees in New Mexico quit their jobs every month. New Mexico employers must start doing something about their company culture, workers’ compensation, and other areas that require fixing. More and more businesses will soon find themselves seriously short-staffed and struggling to meet workforce demands. 

And speaking of workers’ compensation, it should be a top priority for businesses to provide competitive compensation packages and ensure all employees have adequate protection from potential workplace accidents. So in this article, we’ll talk more about workers’ comp and why it’s an absolute must-have for all types of New Mexico enterprise. 

First, What Is Workers’ Compensation?

Workers’ compensation is a system of insurance that extends monetary benefits to workers who suffer from job-related injuries or illnesses. It is a safety net to safeguard them and ensure they and their dependents receive the necessary support during challenging times.

Workers’ comp is government-mandated in the US, but individual states primarily handle them. Each state has its own set of laws and regulations, so benefits and requirements vary. Some states, for example, may exclude small businesses from the coverage, while others may have specific requirements tailored to different industries. 

Suppose you ever need guidance on workers’ compensation requirements. In that case, the National Federation of Independent Business (NFIB) has compiled a summary that breaks down each state’s workers’ comp requirements.

How Does It Work?

Workers’ comp benefits come in two parts: salary replacement and healthcare cost reimbursement (and survivor benefit).

Under workers’ compensation, the salary replacement provided to an employee is typically a percentage of their regular income, often around two-thirds of their gross salary (not subject to tax). Although the replacement amount is less than their full salary, it helps to compensate for a significant portion of the lost income.

Regarding medical expenses, workers’ compensation generally covers only those directly related to workplace injuries or illnesses. For instance, if a construction worker sustains an injury from a fall off scaffolding, they can file a compensation claim. But, injuries incurred during the commute to the job site are usually not covered.

Sometimes, workers may be eligible for benefits like sick pay while on medical leave. And in unfortunate situations where a work-related incident results in an employee’s death, workers’ compensation provides payments to the deceased worker’s dependents for a certain period.

Do Workers Have the Right to Sue?

When workers opt for workers’ compensation benefits, they voluntarily give up their right to sue their employer for negligence. 

By agreeing to this arrangement, workers receive the assurance of guaranteed compensation, while employers accept a certain level of liability. In return, employers avoid the potentially hefty costs of a negligence lawsuit. 

About Daniels Insurance, Inc.

At Daniels Insurance, Inc., we have a unique understanding of the risks that businesses like yours face on a regular basis. With the backing of our comprehensive coverages and our dedication to customer service and quick claims resolution, your business will be fully protected. For more information, contact us today at (855) 565-7616.