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Overview: New Mexico has enacted legislation raising minimum wage in several phases.
Effective Date: See below
Details:
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On April 1, 2019, the Governor of New Mexico, Michelle Grisham signed into law Senate Bill 437 which increases the state minimum wage as noted below. The current state minimum wage is $7.50 per hour.
January 1, 2020 $9.00
January 1, 2021 $10.50
January 1, 2022 $11.50
January 1, 2023 $12.00
The minimum cash wage for tipped employees currently $2.13 per hour will be increased as follows:
January 1, 2020 $2.35
January 1, 2021 $2.55
January 1, 2022 $2.80
January 1, 2023 $3.00
The employer may consider tips as part of wages, but the tips combined with the employer's cash wage shall not equal less than the minimum wage rate. All tips received by such employees shall be retained by the employee, except that pooling of tips among wait staff is allowed.
Senate Bill 437 also provides provisions regarding students and deductions from the minimum wage.
Students:
Effective January 1, 2020, an employer who employs a student regularly enrolled in secondary school to work after school hours or when school is not in session must pay the student a minimum wage rate of at least eight dollars fifty cents $8.50 an hour.
Deductions from the minimum wage:
An employer furnishing food, utilities, supplies or housing to an employee who is engaged in agriculture may deduct the reasonable value of such furnished items from any wages due to the employee.
It is important to note that the minimum wage does not apply to:
- an individual employed in domestic service in or about a private home;
- an individual employed in a bona fide executive, administrative or professional capacity and forepersons, superintendents and supervisors;
- an individual employed by the United States,
- an individual engaged in the activities of an educational, charitable, religious or nonprofit organization where the employer-employee relationship does not, in fact, exist or where the services rendered to such organizations are on a voluntary basis.
- salespersons or employees compensated upon piecework, flat rate schedules or commission basis;
- registered apprentices and learners otherwise provided by law;
- persons eighteen years of age or under who are not students in a primary, secondary, vocational or training school;
- G.I. bill trainees while under training;
- seasonal employees of an employer obtaining and holding a valid certificate issued annually by the director of the labor relations division of the workforce solutions department.
- any employee employed in agriculture:
- an employee engaged in the handling, drying, packing, packaging, processing, freezing or canning of any agricultural or horticultural commodity in its unmanufactured state; or
- employees of charitable, religious or nonprofit organizations who reside on the premises of group homes operated by such charitable, religious or nonprofit organizations for persons who have a mental, emotional or developmental disability.
For a copy of Senate Bill 437 please click on the link provided below:
https://www.nmlegis.gov/Sessions/19%20Regular/final/SB0437.pdf
Action Required: Impacted New Mexico employers should ensure that they comply with the law. Please contact your dedicated service professional with any questions.
This content provides practical information concerning the subject matter covered and is provided with the understanding that ADP is not rendering legal advice.