New Mexico relies on federal and state tests to classify gig workers as employees or independent contractors, with no specific 2025 gig economy law reclassifying them en masse. Platforms like rideshares default workers to contractors under common law factors, but misclassification risks lawsuits via the ABC test or economic realities analysis. Residents must review contracts and IRS Form 1099 thresholds to determine status amid ongoing DOL guidance.​
Classification Tests
The state uses a 10-factor common law test assessing behavioral control, financial aspects, and relationship type—favoring contractor status for gig workers with flexibility in hours and tools. Federal DOL’s 2024 economic reality rule, adopted locally, presumes employee status unless proving independence via profit/loss opportunity and investment. ABC test applies narrowly to unemployment claims, requiring work outside usual business and independent trade.​
Gig Worker Rights
Contractors lack minimum wage, overtime, or workers’ comp but can deduct expenses on taxes and access self-employment benefits like UI via PUA extensions. Employees gain FLSA protections, paid leave under NM’s Healthy Workplaces Act, and anti-retaliation safeguards. Platforms must provide 1099s for earnings over $600 annually.​
Key Differences
SOURCES
[1](https://gobravvo.com/insights/industry-insights/gig-economy-2025-new-state-laws-shaping-independent-contractor-work/)
[2](https://publiclawlibrary.org/mexico-revolutionizes-gig-economy-new-federal-law-to-fortify-labor-rights-for-digital-platform-workers/)
[3](https://iuslaboris.com/insights/new-labour-reform-in-mexico-a-win-for-digital-platform-workers/)
[4](https://www.employerpass.com/employer-insights/new-mexico-labor-laws)
[5](https://natlawreview.com/article/reform-mexicos-federal-labor-law-related-digital-platforms)
