Compliance Corner
In New Mexico, employers subject to the state’s workers’ compensation law must have an annual safety inspection. As Simply Research subscribers know, what follows covers the rules regarding the inspection.
60-Day Rule
Any employer who purchases or renews a policy of workers’ compensation insurance with a premium liability of $15,000 or more shall, within 60 days of the policy issuance or renewal, submit proof of an annual safety inspection to the WCA. Self-insured employers shall submit proof of an annual safety inspection to the WCA within 60 days of completing an inspection.
Standards for Inspections
The minimum standards for the annual safety inspection are contained in the WCA publication, annual safety inspections. This publication may be obtained from the WCA’s website.
Who May Conduct the Inspection?
(a) A safety consultant from the WCA.
(b) A senior manager or dedicated safety professional employed by the business. The WCA may be contacted to provide training on how to conduct a proper safety inspection.
(c) A third party safety organization or safety professional.
(d) A safety professional from the insurance company.
Reporting
Employers shall submit an affidavit listing the address of all facilities that were included in the inspection to the WCA safety program on a form approved by the director. Though the responsibility for reporting is with the employer, the insurance carrier may report completed inspections, provided the insurance carrier or a safety organization or safety professional retained by the carrier conducted the inspection.
Penalties
Failure to comply with the annual safety inspection requirement may subject an employer to penalties under Section 52-1-6.2 NMSA 1978.
Risk Reduction Program
An employer may be classified for the RRP if its experience modifier is higher than the state average for that industry or if a safety audit reveals a need for assistance based on the employer’s accident frequency or severity of injury caused by the accident.
The WCA shall notify the employer and its insurance carrier if that the employer meets the criteria to be enrolled in the RRP and is selected for enrollment in the RRP.
Notice shall be given to the employer, and the insurer or self-insurance entity, if any, by personal service upon any person of suitable age and discretion at the business location or by certified mail addressed to the owner, proprietor, managing partner, president, majority stockholder, chief operational officer or manager of the business.
Employers who have received a notice of classification shall have five days to file a written request for reconsideration with the director. The director may hold hearings upon a request for reconsideration and make a determination as appropriate. Appeal of a ruling by the director shall be by writ of certiorari to the district court, pursuant to S.C.R.A. Rule 1-075.
Within 30 days of service of a notice of classification or within 30 days of the director’s decision if a request for reconsideration is filed, an employer who is classified and enrolled in the RRP shall obtain a safety consultation. The consultation must be performed by a WCA safety consultant, the employer’s insurer or a professional independent safety consultant approved by the director. A WCA safety consultant may assist employers in interpreting the requirement for a safety consultation and in conducting the consultation.
Reporting
The safety consultant performing the safety consultation shall submit within 10 days a written report to WCA and the employer detailing any identified hazardous conditions or practices identified through the safety consultation. The written report must be in a form acceptable to the director.
Accident Prevention Plan
Within 30 days of the submission of the written report concerning the safety consultation, the employer participating in the RRP shall submit a specific accident prevention plan to resolve the hazards and practices identified in the written report.
Investigations
The WCA may investigate accidents occurring at the work sites of an employer for whom a plan has been formulated, and the WCA may otherwise monitor the implementation of the accident prevention plan as it finds necessary.
Follow-Up Inspections
Six months after the formulation of an accident prevention plan, the WCA shall conduct a follow-up inspection of the employer’s premises. The WCA may require the participation of the safety consultant who performed the initial consultation and formulated the safety plan.
If the WCA determines that the employer has complied with the terms of the accident prevention plan or has implemented other acceptable corrective measures, the WCA shall so certify.
If, at the time of the inspection, the employer continues to exceed the injury frequencies that may reasonably be expected in that employer’s business or industry, the WCA shall continue to monitor the safety conditions at the work sites and may formulate additional safety plans reasonably calculated to abate hazards. The employer shall comply with the plans and may be subject to additional penalties for failure to implement the plan or plans.
Extensions
For good cause shown, the director may extend any time limit required by this part for up to 30 additional days.
(a) All applications for extension shall be submitted in writing and shall state with specificity the reasons for requested additional time.
(b) The director may hold hearings to determine the appropriateness of extensions of time for submission of specific accident prevention plans.
(c) The director’s determination on a request for an extension is final.
(d) In the case of an RRP employer whose employees are assigned to furnish services to other employers, the responsibility for the development and submission of an accident prevention plan as required by these rules shall be with the employer who controls and provides direct on-site supervision of the workers who are exposed to the hazards and practices identified in the written report of the safety consultant.
Enforcement Procedures
Any employer who fails to develop, submit, cause to be submitted, implement or comply with a specific accident prevention plan as provided for in these rules shall be subject to imposition of a penalty of up to $5,000. Each incident of failure to formulate, submit, cause to be submitted, implement or comply with a specific accident prevention plan persisting for a period of 15 days shall constitute a separate violation and subject the employer to additional penalties. The enforcement procedures established in 11.4.5 NMAC shall be utilized.
Losing RRP Designation
An employer shall no longer be designated to participate in the RRP when the provisions of Paragraphs (4) through (8) of Subsection B of 11.4.2.9 NMAC, inclusive, have been satisfied.
WCA Data Collection
The employer, its insurer and all agents of the employer or insurer have the duty of compliance with reasonable requests for information from workers’ compensation administration personnel. WCA personnel shall collect data regarding all workplace fatalities in New Mexico.
