The bill amends Section 52-1-54 of the New Mexico Workers' Compensation Act to increase the financial limits related to discovery costs and attorney fees in workers' compensation cases. Specifically, it raises the amount that employers must advance for discovery costs from $3,000 to $6,000. Additionally, the maximum allowable attorney fees for a single accidental injury claim will increase from $22,500 to $30,000 starting in calendar year 2025, with future adjustments based on the consumer price index. The bill also allows for an additional fee of up to $5,000 if a party is found to have acted in bad faith during the handling of a claim.

Furthermore, the bill clarifies the responsibilities regarding the payment of attorney fees, stating that they will generally be shared equally between the worker and the employer, except in specific circumstances outlined in the bill. It also emphasizes that no attorney fees will be paid until a claim is settled or adjudged, and it establishes penalties for violations of these provisions. Overall, the bill aims to enhance the financial support for claimants while ensuring fair compensation for legal representation in workers' compensation cases.

Statutes affected:
introduced version: 52-1-54