House Bill 331: Introduces Labor Mandate for New Mexico’s Industry

New Mexico’s House Bill 331 introduces a major shift in the state’s industry by requiring businesses with ten or more employees to sign and maintain a Labor Peace Agreement (LPA) with a union. Without it, businesses risk license suspension or non-renewal, making labor negotiations a mandatory part of doing business in the state’s market.

For small businesses, this requirement could become a costly regulatory burden. Once a business hires its tenth employee, it must engage with a union. The bill does not clarify what happens if no labor organization is available or willing to sign an LPA, raising concerns that businesses could lose their licenses through no fault of their own.

With a September 1, 2025, requested deadline for compliance, businesses must prepare for potential higher costs, legal uncertainty, and industry consolidation. While the bill aims to protect workers, it may also pressure license holders out of the market, Whether this measure stabilizes the workforce or simply increases barriers to entry remains to be seen.