Enchantment State News

The New Mexico Legislature is set to begin its session on January 21, 2025. Among the issues expected to be addressed are several proposals that could potentially raise business costs in the state.

Jason Espinoza, the State Director of the National Federation of Independent Business (NFIB), recently hosted a virtual event to discuss expectations for the upcoming legislative session. During this event, he emphasized the importance of educating new legislators about challenges faced by small business owners due to significant turnover in the recent election cycle. Espinoza stated, “Engagement from our members will be critical in our advocacy efforts, especially since we anticipate another run at a Paid Family Medical Leave mandate, which would disproportionately hurt Main Street businesses.”

Opportunities highlighted include an actuarial review of health insurance mandates that often increase costs for small businesses. NFIB is working on legislation to allow legislators to initiate such reviews for proposed benefit mandates.

Another area of focus is addressing New Mexico's legal environment, which Espinoza described as "truly unbalanced," leading to increased litigation and higher costs. NFIB aims to enhance transparency by drafting legislation requiring disclosure of third-party litigation financing and prohibiting these parties from receiving larger awards than plaintiffs.

Challenges anticipated include a proposed OSHA heat stress standard requiring employers to provide paid rest breaks when temperatures reach certain levels and monitor workers for heat illness signs. Additionally, there are discussions around increasing attorney fee caps in workers' compensation cases from $22,500 to $30,000 or removing them entirely.

The NFIB also expects renewed attempts at implementing a Paid Family Medical Leave mandate similar to past proposals they have opposed. This would impose a payroll tax and require 12 weeks of leave for employees with broad definitions of 'family members' and no exceptions for small businesses.

Espinoza encouraged direct advocacy efforts in Santa Fe and urged members to use tools like the NFIB Engage App for updates on legislation affecting small businesses.