NM Gov Signs Law Allowing Employers to Fire Employees for Misconduct After RTW
April 29, 2026

This week New Mexico Governor Susana Martinez sign into law a bill that takes away certain benefits to injured workers if they do not comply with certain employer requests upon returning to work.

Senate Bill 155 changes New Mexico’s workers’ comp laws so that if an injured employee returns to work and engages in misconduct unrelated to their injury, they can be fired by their employer. It also states that if an employer offers the injured worker a reasonable return to work scenario and the employee rejects it, then they may no longer be entitled to full disability benefits.

Under the new law judges will be able to fine businesses if they wrongly fire employees because of a work injury.

Supporters of the legislation say the previous system was too easy to abuse, but those who oppose the new legislation say it makes it too easy for employers to reduce benefits to workers. The bill was sponsored by Senator Jacob Candelaria, who is a lawyer and said the bill was not about ideology but rather just “commonsense”.

The Santa Fe New Mexican highlighted several recent court cases that contributed to the debate about this legislation. One case involved an injured worker who could still receive benefits even after being fired for allegedly violating a sexual harassment policy upon their return to work. Another involved an injured worker who returned to work but then retired and could still collect benefits.

If the governor does not sign bills from this year’s Legislature by Friday they will be automatically vetoed.

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