--- title: "New Mexico Workers' Comp Requirements for Employers | MCC" description: "New Mexico workers' comp: 3 or more employees, construction 1+, owners and officers, penalties and the required notice, in the agency's words." url: "https://mcc-solutionsnj.com/bookkeeping/workers-comp-new-mexico" --- Workers' comp · New Mexico # New Mexico workers' compensation requirements Which employers must carry coverage, how owners and contractors are treated, and what the agency's pages say about penalties, the workplace notice, self-insurance and checking a policy. [![Intuit ProAdvisor Gold tier badge](/img/credentials/intuit-proadvisor-gold.png)](https://proadvisor.intuit.com/app/accountant/search?searchId=matthew-coleman77)Gold tier in Intuit's ProAdvisor program. [See my Intuit listing](https://proadvisor.intuit.com/app/accountant/search?searchId=matthew-coleman77) Keeping your own books? Tallyfinch does invoices, bank import and reports on your computer. [See Tallyfinch](/bookkeeping/mcc-books-downloadable-bookkeeping-software) **Short answer.** Businesses with three or more workers. Exempted officers still count toward the three. Construction: Coverage is required for every employee doing construction work, whatever the headcount. ## At a glance Who must carry it Businesses with three or more workers. Exempted officers still count toward the three. Construction Coverage is required for every employee doing construction work, whatever the headcount. Agriculture Agricultural employers are now required to carry it. Domestic and real estate Coverage isn't required for domestic servants or real estate salespeople. Owners and officers Sole proprietors and executive employees, including corporate officers who own 10% or more of the stock and LLC executives, can elect not to accept the Act; sole proprietor exemptions need approval. Independent contractors Employers don't have to insure independent contractors; status depends on the facts of each case. Self-insurance Businesses can apply to the WCA to self-insure if they meet financial requirements. Going without Penalties range from fines to injunctions against the business; no amounts are given. Workplace notice Display the WCA Poster and the Notice of Accident form in a conspicuous place. Check a policy Call the WCA Employer Compliance Bureau at (505) 841-6851. Agency New Mexico Workers' Compensation Administration ## In the agency's words **The rule** Hiring in another state? [Employer registration in New Mexico, done for you](/bookkeeping/out-of-state-employer-registration), or [a free bookkeeping health check](/bookkeeping/health-check). "All businesses that employ three or more workers are required to have coverage." **Construction** "New Mexico workers' compensation law requires coverage for all employees engaged in construction activities." **Agriculture** "Agricultural employers are now required to carry workers' compensation insurance." **Domestic and real estate** "Coverage is not required for domestic servants or real estate salespeople." **Owners** "can elect not to accept the provisions of the Workers' Compensation Act." **Contractors** "Employers are exempt from providing workers' compensation insurance for independent contractors." **Going without** "ranging in severity from monetary fines to injunctions against the business" **Notice** "The WCA Poster and Notice of Accident forms must be displayed in a conspicuous place..." ## Three example businesses What the stated rule says for three common setups: - **2 employees, most businesses (not construction), llc:** Not required by the headcount rule. [See why](/bookkeeping/do-i-need-workers-comp-checker?state=nm&employees=2&industry=other&biz=llc) - **4 employees, construction, corporation:** Required. [See why](/bookkeeping/do-i-need-workers-comp-checker?state=nm&employees=4&industry=construction&biz=corporation) - **6 employees, most businesses (not construction), sole proprietor:** Required. [See why](/bookkeeping/do-i-need-workers-comp-checker?state=nm&employees=6&industry=other&biz=sole) Your own numbers: [open the checker for New Mexico](/bookkeeping/do-i-need-workers-comp-checker?state=nm). ## Official sources - [Determining Insurance Coverage (New Mexico Workers' Compensation Administration)](https://workerscomp.nm.gov/node/49) (checked November 2026) - [NMWCA Business Information (New Mexico Workers' Compensation Administration)](https://workerscomp.nm.gov/node/54) (checked November 2026) General information, not legal or insurance advice; we are not lawyers or insurance agents. Rules as published on the pages above, checked November 2026. We don't recommend or sell any insurer; the agency or a licensed agent can say how a rule applies to your business. ## Common questions **Who has to carry workers' comp in New Mexico?** Businesses with three or more workers. Exempted officers still count toward the three. The agency puts it as "All businesses that employ three or more workers are required to have coverage." **Is the rule different for construction in New Mexico?** Yes. Coverage is required for every employee doing construction work, whatever the headcount. **Do owners and officers need coverage in New Mexico?** Sole proprietors and executive employees, including corporate officers who own 10% or more of the stock and LLC executives, can elect not to accept the Act; sole proprietor exemptions need approval. **What about independent contractors in New Mexico?** Employers don't have to insure independent contractors; status depends on the facts of each case. **What happens to a New Mexico employer with no coverage?** Penalties range from fines to injunctions against the business; no amounts are given. **What notice must a New Mexico employer post?** Display the WCA Poster and the Notice of Accident form in a conspicuous place. All states: [workers' comp requirements by state](/bookkeeping/workers-comp-requirements-by-state) · [New Jersey](/bookkeeping/workers-comp-new-jersey) · [New York](/bookkeeping/workers-comp-new-york) Keeping coverage records in New Mexico? ## Workers' Comp and Business Insurance Records Kit A state coverage checklist with New Mexico's rule and official link, a certificate of insurance log for subcontractors, an injury report and claim log, and a workbook that flags policy renewals and expiring certificates, as Word files and PDFs. [Get the kit ($15)](/toolkits/workers-comp-and-insurance-records-kit) [Free sample](/toolkits/workers-comp-and-insurance-records-kit#free-starter)14-day full refund Tallyfinch ### Books you keep on your own computer Tallyfinch does invoices, bills, bank import, reconciliation and the main reports, in a file you own. $99 once, then $5 a month for updates; the app keeps working if you stop the plan. It does not do payroll or sales tax filing. The free download records up to 60 entries. [See Tallyfinch](/bookkeeping/mcc-books-downloadable-bookkeeping-software) [Download it free](/tools/pro/trial/mccBooks) [Compare the three apps](/software) ## Want payroll and insurance records kept for you? [See bookkeeping services](/bookkeeping/)[Call (908) 444-6373](tel:+19084446373)