44th legislature - STATE OF NEW MEXICO - second session, 2000

RELATING TO WORKERS' COMPENSATION; CLARIFYING THAT THE WORKERS' COMPENSATION ACT IS THE EXCLUSIVE REMEDY FOR INJURED EMPLOYEES; AMENDING SECTIONS OF THE WORKERS' COMPENSATION ACT.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. Section 52-1-2 NMSA 1978 (being Laws 1929, Chapter 113, Section 2, as amended) is amended to read:

"52-1-2. EMPLOYERS WHO COME WITHIN ACT.--The state and each county, municipality, school district, drainage, irrigation or conservancy district, public institution and administrative board thereof employing workers, every charitable organization employing workers and every private person, firm or corporation engaged in carrying on for the purpose of business or trade within this state, and which employs, directly or indirectly, four or more workers, except as provided in Section 52-1-6 NMSA 1978, shall become liable to and shall pay to any such worker injured by accident arising out of and in the course of his employment and, in case of his death being occasioned thereby, to such person as may be authorized by the director or appointed by a court to receive the same for the benefit of his dependents, compensation in the manner and amount at the times [herein] required in the Workers' Compensation Act."

Section 2. Section 52-1-9 NMSA 1978 (being Laws 1937, Chapter 92, Section 4, as amended) is amended to read:

"52-1-9. RIGHT TO COMPENSATION--EXCLUSIVE.--

A. The right to the compensation provided for in [this] the Workers' Compensation Act, in lieu of any other liability whatsoever, to any and all persons whomsoever, for any personal injury accidentally sustained or death resulting therefrom, shall obtain in all cases where the following conditions occur:

[A.] (1) at the time of the accident, the employer has complied with the provisions thereof regarding insurance;

[B.] (2) at the time of the accident, the employee is performing service arising out of and in the course of his employment; and

[C.] (3) the injury or death is proximately caused by accident arising out of and in the course of his employment and is not intentionally self-inflicted.

B. The exclusive remedies provided for in the Workers' Compensation Act shall not be affected if there is no compensation available pursuant to that act for an employee who sustains an injury."

Section 3. Section 52-1-22 NMSA 1978 (being Laws 1965, Chapter 295, Section 15, as amended) is amended to read:

"52-1-22. WORK NOT CASUAL EMPLOYMENT.--

A. As used in the Workers' Compensation Act, unless the context otherwise requires, where any employer procures any work to be done wholly or in part for him by a contractor other than an independent contractor and the work so procured to be done is a part or process in the trade or business or undertaking of [such] the employer, then [such] the employer shall be liable to pay all compensation under the Workers' Compensation Act to the same extent as if the work were done without the intervention of such contractor. The work so procured to be done shall not be construed to be "casual employment".

B. When a contractor has contracted directly with an owner or owner's agent, and the contractor procures a subcontractor to perform any part of that contract whether wholly or in part:

(1) the contractor shall be considered an employer of the subcontractor's employees;

(2) the contractor shall have the immunity of an employer provider by the Workers' Compensation Act; and

(3) unless the subcontractor has provided compensation to his employees, the contractor shall be liable for payment of compensation to the employees of the subcontractor for the work performed.

C. The contractor or his insurer may recover the amount of the compensation and the cost of expenses incurred in the recovery from the subcontractor."

Section 4. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2000.