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Restaurant Workers' Comp in New Mexico

What New Mexico requires of restaurants and bars for workers' compensation — when it kicks in, who's exempt, and what it costs.

Reviewed by J. Robert Smith, Licensed Insurance Agent (NPN 10378680). Last updated .

Yes, once a restaurant employs three or more workers. New Mexico's Workers' Compensation Act applies to employers with three or more employees, counting part-time, seasonal, and paid family members. Below three, coverage is optional. Restaurants aren't construction, so the any-employee construction rule doesn't apply. Employers also pay a quarterly workers' compensation assessment fee per covered worker.

Required?
Yes
Kicks in at
Three or more workers (part-time, seasonal, and paid family included) under NMSA 1978 § 52-1-6; construction-licensed employers must carry coverage regardless of count.
Restaurant rate
NCCI class 9082 (full-service restaurant) approx. $0.90–$1.50 per $100 payroll; 9083 (limited-service/fast food) approx. $0.80–$1.30. Low-to-moderate hazard tier. Approximate, industry tier.
Market
Competitive private market with no monopolistic state fund; residual/hard-to-place risks are covered through the NCCI-administered New Mexico Assigned Risk Pool.

Is workers’ comp required for a restaurant in New Mexico?

New Mexico requires workers' compensation once you reach Three or more workers (part-time, seasonal, and paid family included) under NMSA 1978 § 52-1-6; construction-licensed employers must carry coverage regardless of count.. Employers with fewer than three workers are exempt (may elect coverage), and sole proprietors, partners, and LLC members/corporate officers owning 10%+ count toward — but can sometimes exclude — themselves. Domestic servants and certain casual labor are excluded; agricultural/farm-and-ranch laborers are now covered following the 2016 Rodriguez v. Brand West Dairy ruling.

What restaurant workers’ comp costs in New Mexico

The restaurant class-code rate in New Mexico is NCCI class 9082 (full-service restaurant) approx. $0.90–$1.50 per $100 payroll; 9083 (limited-service/fast food) approx. $0.80–$1.30. Low-to-moderate hazard tier. Approximate, industry tier.. Your premium is that rate applied per $100 of payroll and adjusted by your experience modifier, so it scales with how many people you employ and your claims history. Competitive private market with no monopolistic state fund; residual/hard-to-place risks are covered through the NCCI-administered New Mexico Assigned Risk Pool.

What owners in New Mexico miss

  • New Mexico's three-employee threshold counts owners, part-time, seasonal, and paid family members toward the count.
  • Construction-licensed employers must carry coverage from the first worker regardless of the three-employee rule.
  • Employers remit a quarterly Workers' Compensation Assessment Fee of $4.80 per covered employee (employer pays $2.55, worker $2.25) to the Taxation and Revenue Department.
  • Agricultural laborers gained coverage after a 2016 New Mexico Supreme Court decision.

Sources

Cost examples are illustrative national figures gathered from public filings and industry surveys. They are not quotes. Your actual premium depends on your state, carrier, revenue, payroll, location, and coverage selections. Restaurant Insurance Authority is an insurance marketing and referral service, not an insurer or licensed agency. We connect business owners with licensed independent commercial-lines agents who specialize in food and beverage. Questions? Call (855) 480-1410.

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