New Mexico’s Exclusive Remedy Rule

State Snapshot

BASIC RULE

In New Mexico, workers’ compensation is the exclusive legal remedy for workplace injuries.  N.M. Stat. Ann. 52-1-6(E).

This means that the employee cannot sue the employer in tort (where the employee might obtain monetary damages) for covered injuries, such as by claiming that the employer’s negligence caused his injury. 

The rule also applies to a surviving spouse or dependent who attempts to sue the employer for wrongful death.

REQUIREMENTS FOR RULE TO APPLY

The rule applies if 

1. The employer has complied with workers' compensation insurance coverage requirements;
2. At the time of the accident, the employee is performing service arising out of and in the course of his employment; and 
3. The injury or death is proximately caused by an accident arising out of and in the course of his employment and is not intentionally self-inflicted.

INTENTIONAL INJURY EXCEPTION

The rule applies to accidental, not intentional injuries. Thus, the rule does not apply where the employer willfully or intentionally injured the employee.

To meet this exception, the employee must show:

1. The employer knew their actions were reasonably certain to result in injury or death;
2. The employer willfully disregarded that certainty; and
3. The employer’s actions proximately caused the injury.

SEXUAL HARASSMENT

The exclusive remedy provision does not apply to sexual harassment claims. This is because sexual harassment does not arise out of employment and is not an accident. 

BAD FAITH

An employee may sue a workers' compensation insurer for "bad faith" (e.g., intentional and malicious refusal to pay benefits).

THIRD PARTY LAWSUITS

The exclusive remedy provision does not apply to lawsuits against third parties. For example, if an employee is injured by defective equipment manufactured by another company, the employee may still sue that other company while collecting workers’ compensation benefits.

LACK OF COVERAGE

If the employer fails to obtain workers’ compensation insurance, the exclusivity rule does not apply and the employee may sue the employer in tort.

STATUTORY EMPLOYERS

The exclusive remedy provision typically applies to general contractors when a subcontractor’s employee is injured on the job. If the general contractor has workers' compensation insurance in place, the exclusive remedy rule will generally bar that employee from suing the general contractor in tort.

Got questions about the exclusive remedy rule in your state? Get answers on Simply Research.

RECENT CASES

Ebrahimi v. Liberty Oilfield Servs., No. CIV 24-0340 JB/GBW (08/29/25)

An employee was injured working in the oilfields. Wavsys LLC leased him to Liberty Oilfield pursuant to a Master Client Agreement. He sued Liberty in tort for his injuries. Liberty Oilfield argued the claim was barred by the exclusivity provision. The court agreed. It reasoned that the Master Client Agreement required Wavsys LLC to maintain worker's compensation insurance covering the employee’s work for Liberty.

Doe v. Santa Fe Pub. Schs., Civ. No. 23-1025 GBW/JFR (D.N.M. 09/19/25)

A former student alleged that when he became a summer employee at a private school, he was sexually abused by a nurse’s aide at the school. He sued the Archdiocese that ran the school for negligent hiring, retention, and supervision. The court ruled that the exclusivity provision did not protect the Archdiocese from the lawsuit. This is because sexual abuse and harassment are not accidents under New Mexico law. Workplace sexual abuse is a form of intentional misconduct and discrimination, which is not considered a compensable workplace risk under the WCA in New Mexico. 

RELATED ARTICLES ON WorkersCompensation.com

Basic New Mexico Workers’ Compensation Terms

Bad Faith Penalties in New Mexico 

Workplace Gun Safety (Alec Baldwin case)

THE EXCLUSIVE REMEDY RULE IN NEARBY STATES

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