Independent Contractors: New Mexico

Federal law and guidance on this subject should be reviewed together with this section.

Author: Brightmine Editorial Team

Summary

• Due to potential tax consequences and, in the case of construction companies, the potential for criminal penalties the correct classification of workers is vital. State statutes, jury instructions and other informal guidance can help employers determine whether a worker is an employee or an independent contractor. See Determining Whether a Worker Is an Employee or an Independent Contractor.
• The New Mexico Taxation and Revenue Department has issued some guidance on the distinction between employees and independent contractors. See Agency Guidance.
• Definitions of the terms "employee," "employer," and "independent contractor" are found throughout New Mexico's employment statutes and have been further developed by New Mexico courts. The most comprehensive set of statutes regarding the difference between employees and independent contractors is found in the statutory provisions regulating the construction industries. See Statutory Definitions.
• Additional guidance regarding the definition of independent contractor can be found in New Mexico's jury instructions. See Jury Instructions.