1. What is the current minimum wage in New Mexico and how does it compare to federal minimum wage?

As of January 1, 2021, the current minimum wage in New Mexico is $10.50 per hour for most non-tipped employees. Tipped employees have a minimum wage of $2.55 per hour, as long as their total earnings (including tips) equal at least the full state minimum wage of $10.50 per hour.

The federal minimum wage, on the other hand, is $7.25 per hour and has not been raised since 2009. This means that the current minimum wage in New Mexico is significantly higher than the federal minimum wage.

2. Has there been any recent changes or updates to the minimum wage in New Mexico?

Yes, there have been recent changes to the minimum wage in New Mexico. Beginning on January 1, 2020, the state’s minimum wage increased from $7.50 per hour to $9 per hour.

On January 1, 2021, it was further increased to $10.50 per hour for most non-tipped employees and $2.55 for tipped employees.

Additionally, under a new law signed in March 2019 by Governor Michelle Lujan Grisham, the state’s minimum wage will continue to increase annually until it reaches $12 per hour in 2023 for most non-tipped employees and $3 per hour for tipped employees.

Some localities in New Mexico also have their own higher minimum wages that employers must comply with.

3. Are there any exemptions or special provisions for certain types of workers regarding minimum wage?

Yes, there are some exemptions and special provisions for certain types of workers under New Mexico’s Minimum Wage Act.

– Tipped employees: As mentioned above, tipped employees have a lower hourly rate ($2.55) but must still earn at least the full state minimum wage with their tips included.
– Trainees: Employers may pay trainees who are under the age of 20 a lower hourly rate of $7.50 for the first six months of their employment.
– Student employees: Employers may pay student employees who are under the age of 18 at a rate of 85% of the state minimum wage for up to 20 hours per week when school is in session.
– Seasonal workers: Seasonal agricultural workers who work on farms or ranches are exempt from the state minimum wage requirements.
– Employees at certain small businesses: Businesses with fewer than four employees may pay their workers a lower hourly rate of $8.50 per hour until December 31, 2021. After that, they must comply with the regular state minimum wage rates.

It’s important to note that these exemptions and special provisions do not apply to federal minimum wage laws. The federal minimum wage applies to all covered non-exempt employees regardless of their occupation or industry.

2. Has there been any recent legislation proposed to increase the minimum wage in New Mexico?

Yes, there have been several recent proposals to increase the minimum wage in New Mexico.

One bill, House Bill 31, was introduced in the 2020 legislative session and proposed to raise the state’s minimum wage from $7.50 to $12 per hour by January 1, 2022. It also included a provision for cost-of-living adjustments to be made annually beginning in 2023.

Another bill, Senate Bill 437, was also introduced in the 2020 session and proposed a more gradual increase of the minimum wage, reaching $12 per hour by July 1, 2024. This bill also included a provision for annual cost-of-living adjustments after that date.

In June 2019, Governor Michelle Lujan Grisham signed an executive order increasing the minimum wage for all state employees to $12 per hour starting January 1, 2020. This only applies to employees under the authority of the governor and does not affect private sector workers.

Additionally, some municipalities in New Mexico have passed their own local minimum wage ordinances. Santa Fe has a current minimum wage of $11.80 per hour (increasing to $12.10 on March 1st), while Albuquerque’s minimum wage is currently $9.35 per hour with plans to increase it to $9.50 on March l)st and then align with Santa Fe’s rate on January l)st next year.

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These minimum wage proposals are still being debated and have not yet been enacted into law. It is possible that they may be revisited in future legislative sessions or through executive action.

3. Are there any exemptions or exceptions to the minimum wage law in New Mexico?

Yes, there are certain exemptions and exceptions to the minimum wage law in New Mexico. These include:
– Tipped employees: Tipped employees must be paid at least $2.35 per hour, as long as their total wages (including tips) equal or exceed the minimum wage of $7.50 per hour.
– Seasonal employees: Employers may pay seasonal employees, such as those who work for a short time during the summer, 85% of the minimum wage.
– Trainees: Employers may pay trainees under the age of 20 a training wage of no less than $4.25 per hour for their first 60 days of employment.
– Workers with disabilities: Employers may apply for a special certificate from the state allowing them to pay workers with disabilities wages less than the minimum wage.
– Agricultural workers: Agricultural workers are exempt from receiving the state minimum wage and instead must receive the federal agricultural minimum wage rate set by the U.S. Department of Labor.
– Independent contractors: Independent contractors, also known as freelancers or consultants, are not covered by minimum wage laws.
Additionally, there are some exceptions for certain industries or occupations that are governed by a different federal or state law, such as babysitters or live-in companions.

4. How often does the minimum wage in New Mexico get reviewed and potentially adjusted?

The minimum wage in New Mexico is reviewed and potentially adjusted on an annual basis.

5. Is there a difference in minimum wage for different industries or job types within New Mexico?

Yes, there is a difference in minimum wage for different industries and job types within New Mexico. The current minimum wage for tipped employees is $3.35 per hour, which applies to employees who regularly receive more than $30 per month in tips. There are also exemptions for certain types of jobs, such as farm and ranch work or employment with the federal government. Additionally, some cities and counties in New Mexico have passed their own minimum wage laws that may differ from the state minimum wage.

6. Have there been any significant changes to the minimum wage laws in New Mexico over the past decade?

Yes, there have been several changes to the minimum wage laws in New Mexico over the past decade.

In 2009, the state minimum wage was increased from $6.50 to $7.50 per hour. It was then adjusted for inflation every year since then, with a maximum increase of $0.70 in 2013.

In 2014, a new law was passed which raised the minimum wage to $8.00 per hour and also mandated annual adjustments for inflation, starting in January 2015.

In addition, some municipalities in New Mexico have enacted their own local minimum wage ordinances that are higher than the state minimum wage. For example, Santa Fe has a local minimum wage of $12.10 per hour and Albuquerque’s is currently set at $9.20 per hour.

Finally, effective January 1, 2020, a new state law increases the minimum wage to $9.00 per hour and will continue to gradually increase it annually until reaching $12 per hour in 2023. After that, it will be adjusted for inflation each year based on the Consumer Price Index (CPI).

7. How does New Mexico’s minimum wage compare to neighboring states?

New Mexico’s current minimum wage rate of $7.50 per hour is the same as its neighboring state, Arizona. However, Colorado has a minimum wage rate of $11.10 per hour and Texas has a minimum wage rate of $7.25 per hour, the federal minimum wage law.

8. Is it legal for employers in New Mexico to pay less than minimum wage, such as through tip credits or youth wages?

Yes, under certain conditions. The minimum wage in New Mexico is currently $10.50 per hour for most employees. However, employers may pay tipped employees a lower cash wage of $2.35 per hour, as long as the employee’s tips and the cash wage combined equal at least the full minimum wage.

Additionally, employers may pay youth employees (those under 19 years old) a lower minimum wage of $8.25 per hour for the first six months of employment, or until they turn 20 years old, whichever comes first.

Employers must also comply with federal minimum wage laws, which currently set the minimum wage at $7.25 per hour. If an employee is covered by both state and federal minimum wage laws, they are entitled to the higher of the two rates.

It is important for employers to carefully track employees’ wages and ensure they are meeting all legal requirements for minimum wage.

9. Are small businesses exempt from paying the state minimum wage in New Mexico?

No, all employers in New Mexico are required to pay their employees the state’s minimum wage, regardless of the size of the business.

10. What is considered a livable or fair wage according to cost of living in New Mexico?

The concept of a livable or fair wage can vary depending on factors such as family size, specific location within New Mexico, and personal expenses and debts. However, the MIT Living Wage Calculator estimates that a single adult working full-time in New Mexico would need to earn at least $13.60 per hour in order to cover basic living expenses, including housing, food, transportation, healthcare, and taxes. This equates to an annual salary of approximately $28,200.

For a family with two working adults and two children, the estimated livable wage increases to $27.41 per hour or $113,672 annually. The cost of living also varies by city within New Mexico; for example, the living wage for one adult in Santa Fe is estimated at $15.50 per hour while it is slightly lower at $13.03 per hour in Albuquerque.

Overall, a livable or fair wage in New Mexico would be enough for an individual or family to cover their basic needs without struggling financially or relying heavily on public assistance programs.

11. Does New Mexico have a plan for gradually increasing the minimum wage towards a certain target amount?

Yes, New Mexico has a planned gradual increase of the state minimum wage towards certain target amounts. The current law, which was passed in 2019, includes an annual increase to the state minimum wage from $7.50 per hour in 2020 to $12.00 per hour by 2023. After that, there will be yearly adjustments based on cost-of-living increases.

Additionally, some cities and counties in New Mexico have implemented their own higher minimum wage rates that are even above the state’s planned increases. For example, Santa Fe currently has a minimum wage of $12.10 per hour and is set to increase to $15.00 per hour by 2025.

In 2021, Governor Michelle Lujan Grisham also proposed a bill that would gradually raise the statewide minimum wage to $15.00 per hour by 2024 and then tie it to inflation after that. However, this proposal did not pass in the legislative session.

Overall, it is likely that there will continue to be ongoing efforts to gradually increase the minimum wage towards target amounts in New Mexico in the future.

12. Are there any debates or controversies surrounding the current minimum wage laws in New Mexico?

Yes, there are several ongoing debates and controversies surrounding the current minimum wage laws in New Mexico.

1. Raising the minimum wage: One of the biggest debates is whether or not to raise the minimum wage in New Mexico. Proponents argue that a higher minimum wage will help workers meet their basic needs and reduce income inequality, while opponents argue that it could lead to job losses and hurt businesses.

2. Impact on small businesses: Many small business owners claim that they will struggle to afford a higher minimum wage, especially in rural areas where profit margins may be smaller. This has sparked a debate about whether certain industries or regions should have different minimum wage rates.

3. Cost of living differences: New Mexico is a large state with variations in cost of living among different regions. Some argue that the current statewide minimum wage does not adequately reflect these differences.

4. Tipped worker wages: Another contentious issue is the minimum wage for tipped workers, which currently stands at $2.35 per hour in New Mexico. While some argue that this system allows for higher earnings for tipped workers, others claim it perpetuates income inequality and can lead to unpaid wages.

5. Enforcement and compliance: There are also concerns about enforcement and compliance with current minimum wage laws in New Mexico. Some fear that employers may try to bypass paying the minimum wage or fail to comply with other labor laws.

Overall, there are ongoing discussions and disagreements among lawmakers, business owners, and advocacy groups regarding potential changes to New Mexico’s minimum wage laws.

13. Do employees who receive tips have a separate, lower minimum wage requirement in New Mexico?

Yes, employees who regularly receive tips may be paid a lower minimum wage in New Mexico. The current minimum wage rate for tipped employees is $2.13 per hour. However, if the employee’s hourly wage plus tips does not equal at least the standard minimum wage of $10.50 per hour, the employer is required to make up the difference. This is known as a “tip credit.”

14. Are non-profit organizations exempt from paying their employees at least state minimum wage in New Mexico?

No, non-profit organizations are not exempt from paying their employees at least the state minimum wage in New Mexico. All employers, including non-profits, must comply with state and federal minimum wage laws.

15. What are the consequences for employers who violate the state’s minimum wage laws in New Mexico?

Employers who violate the state’s minimum wage laws in New Mexico may face penalties including fines, civil actions, and potential criminal charges. The amount of the fine and severity of the penalty may vary depending on the specific violation and circumstances. In addition to these legal consequences, employers may also face damage to their reputation and credibility, loss of employee trust and loyalty, and negative publicity. Employers may also be required to pay back wages owed to employees or face legal action from affected employees.

16. How does overtime pay affect employees who are paid at or near the state’s minimum wage level in New Mexico?

In New Mexico, the current minimum wage rate is $9.00 per hour. Overtime pay in the state is required for all non-exempt employees who work more than 40 hours in a workweek, and at a rate of 1.5 times their regular hourly rate.

For employees who are paid at or near the minimum wage level, overtime pay can greatly increase their total earnings. For example, an employee who works 45 hours in a workweek would be entitled to receive 40 hours of pay at the regular rate of $9.00 per hour, and 5 hours of pay at the overtime rate of $13.50 per hour (1.5 x $9). This would result in a total weekly earnings of $427.50 instead of $405 for just 40 hours worked.

The extra income from overtime pay can provide much-needed financial support for low-wage workers and their families. However, employers may also choose to limit employees’ working hours to avoid paying overtime wages, which could potentially lead to reduced earnings for employees.

Additionally, New Mexico has exemptions to the state’s minimum wage law that allow certain industries or occupations to pay below the minimum wage, such as students working part-time jobs or certain agricultural workers. These exemptions may impact how overtime pay affects these employees’ earnings.

Overall, overtime pay can have both positive and negative impacts on employees paid at or near the state’s minimum wage level in New Mexico, but it generally allows them to earn more income for their hard work and dedication on the job.

17. Are there any specific industries or job types that are exempt from following state-level minimum wage laws in New Mexico?

There are no specific industries or job types that are exempt from following state-level minimum wage laws in New Mexico. However, certain employees may be exempt from the minimum wage requirement if they fall under one of the exemptions outlined by the Fair Labor Standards Act (FLSA), such as outside salespeople, agricultural workers, and certain tipped employees. Additionally, individuals who are employed in domestic service (such as babysitting or housekeeping) and individuals who are employed by their parents or spouse may be exempt from the minimum wage requirement.

18. If an employee works remotely for a company based outside of New Mexico, do they still receive at least state-mandated minimum wage?

Yes, employees must receive at least the state-mandated minimum wage regardless of where the company is based. However, if the employee is located in a state with a higher minimum wage than New Mexico, they must be paid at least the higher rate.

19. Are there any age restrictions for employees earning the minimum wage in New Mexico?

Yes, employees must be at least 18 years old to earn the state minimum wage in New Mexico. Workers under 18 years old may be paid 85% of the minimum wage, or $8.30 per hour, whichever is higher. However, certain exemptions and exceptions apply for workers in specific industries or job roles.

20. In what ways does New Mexico enforce compliance with their minimum wage laws?

New Mexico enforces compliance with their minimum wage laws in the following ways:

1. Conducting routine inspections: The New Mexico Department of Workforce Solutions conducts regular inspections to ensure that employers are paying their employees the state’s minimum wage. Inspectors may visit businesses without prior notice and review payroll records to determine if employees are being paid the correct amount.

2. Investigating employee complaints: If an employee believes that they are not being paid the minimum wage, they can file a complaint with the Department of Workforce Solutions. Investigators will then conduct an investigation and take appropriate action if they find evidence of non-compliance.

3. Filing legal actions: The New Mexico Department of Workforce Solutions has the authority to file legal action against employers who are found to be in violation of minimum wage laws. This can result in fines or penalties for the employer.

4. Requiring employers to display labor law posters: Employers in New Mexico are required to prominently display posters that inform employees about their rights under state labor laws, including minimum wage requirements. This helps ensure that employees are aware of their rights and can report any violations.

5. Collaborating with other agencies: The Department of Workforce Solutions collaborates with other government agencies, such as the Department of Labor and Attorney General’s Office, to enforce compliance with minimum wage laws.

6. Public education campaigns: The department also conducts public education campaigns to inform both employers and employees about their rights and responsibilities regarding minimum wage laws.

7. Imposing penalties for non-compliance: Employers found in violation of minimum wage laws may face penalties such as fines or back pay for employees.

8. Providing resources for employers: The Department of Workforce Solutions provides resources for employers on its website, including information on minimum wage requirements and how to calculate overtime pay, to help them comply with labor laws.