New Mexico Employment Law Update — April 2019

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New Mexico

Minimum Wage Increase

On March 1, 2019, New Mexico Governor Michelle Lujan Grisham signed legislation (S.B. 437) increasing the state’s minimum wage from $7.50 as follows:

  • $9 per hour effective January 1, 2020.
  • $10.50 per hour effective January 1, 2021.
  • $11.50 per hour effective January 1, 2022.
  • $12 per hour effective January 1, 2023.

Under the law, tipped employees must be paid a minimum hourly wage of $2.30 until January 1, 2020 with the following increases:

  • $2.35 per hour effective January 1, 2020.
  • $2.55 per hour effective January 1, 2021.
  • $2.80 per hour effective January 1, 2022.
  • $3 per hour effective January 1, 2023.

The law permits employers to consider tips as part of wages, but the tips combined with the employer’s cash wage may not be less than the state’s applicable minimum wage rate. Additionally, tipped employees must retain all tips they receive; however, the new law specifies that tip pooling among wait staff (rather than just among employees) is permitted.

Lastly, the law also provides a separate minimum wage of $8.50 for employed secondary school students as of January 1, 2020.

The law is effective January 1, 2020.

Read NM S.B. 437

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