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Are telecommuters and remote workers considered covered employees under the Act?

It is impossible to give a precise answer to this question because of the numerous scenarios that may come up. In general, however, telecommuters and remote workers who:

  • Perform services within the geographical boundaries of New Mexico, other than on tribal land, and whose employers are incorporated, registered, based, physically located, or are conducting their stated business in New Mexico (a “New Mexico employer”) are most likely covered;
  • Perform services remotely while within the geographical boundaries of New Mexico, other than on tribal land, and whose employers are based or incorporated out of state (an “out-of-state employer”) but do provide significant services in New Mexico or conduct significant business activities in the state, are probably covered. The Division will determine coverage on a case-by-case basis after reviewing the facts presented in a PSL complaint. An employer must have “minimum contacts” with our state as defined by law for the Division to have jurisdiction;
  • Perform services remotely while within the geographical boundaries of New Mexico, other than on tribal land, but whose employers are based out of state and do not provide significant services in New Mexico or conduct significant business activities in the state, are most likely not covered due to a lack of minimum contacts with our state by the employer;
  • Perform services remotely but do so while physically outside of the geographical boundaries of New Mexico are not covered regardless of whether their employers are based in New Mexico or are out-of-state employers with minimum contacts. The work upon which the accrual, usage, and payment of paid sick leave is based must have been performed in New Mexico for the Division to have jurisdiction;

Remotely perform some services in New Mexico and other services not in New Mexico, are probably partially covered by the Act for the services performed in New Mexico, but only if the employer is also a New Mexico employer or an out-of-state employer with minimum contacts in New Mexico.    

New Mexico ranks among the top 5 states for job growth

New Mexico ranked 5th in the nation for over-the-year total nonfarm employment growth in February only surpassed by Nevada, Hawaii, Texas, and California. Increasing by 50,100 jobs, or 6.4 percent, most of the gains were in the private sector with seven major private industry sectors reporting employment increases from February 2021 to February 2022.

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