SANTA FE, NM (AP) The New Mexico Workers’ Compensation Administration has temporarily suspended an interpretation of state law that required contractors without employees to purchase workers’ compensation insurance.

Sole-proprietor contractors were not required to get the insurance in the past. But earlier this year, the administration determined that all contractors have to buy the insurance, regardless if they employ anyone.

The insurance can cost each contractor up to $850 a year.

R.J. Marney, a contractor in Albuquerque, said making sole-proprietor contractors buy the insurance is an unfair financial burden.

"There is a whole segment of us contractors who don’t compete with the building contractors," he said. "We do mostly small repair work."

The Construction Industries Division has been denying the renewal of licenses for contractors because of the new interpretation. But now that the rule has been suspended, those licenses are in the mail.

"We started getting flooded with phone calls," said Lisa Martinez, chief of the division.

The administration decided to temporarily back off its position because of the ambiguity in state laws, said Alan Varela, director of the administration.

"I’ll have to agree the statutes are less than crystal clear,’ he said.

The Construction Industries Division and Varela have been working closely on the issue since March. The division agreed to start requiring all contractors to purchase the insurance, but it also agrees the issue should be re-examined to clear up any ambiguities.

Varela is asking the administration’s advisory council to study the law and propose changes making it clearer.

The issue will be taken to the state Legislature once the council makes a recommendation, he said.

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