New Mexico’s state minimum wage dictates the lowest hourly rate employers can pay. This comprehensive guide outlines current rates, exemptions, related wage laws, and best practices for compliance.
Understanding New Mexico’s Minimum Wage
New Mexico’s minimum wage is currently $12.00 per hour. The tipped minimum wage is $3.00 per hour, but employers must ensure total earnings, including tips, reach at least $12.00 per hour. This wage has seen gradual increases in recent years to reflect rising living costs.
Municipal Minimum Wage Ordinances
Certain cities in New Mexico have higher minimum wages than the state mandate.
- Albuquerque: $12.00 per hour with a tipped minimum wage of $7.20 per hour.
- Santa Fe County and City: $14.60 per hour (Santa Fe County’s tipped minimum wage is $4.38 per hour).
- Las Cruces: $12.36 per hour with a tipped minimum wage of $4.95 per hour.
Bernalillo County’s $10.30 minimum wage is superseded by the higher state rate.
Exemptions and Special Cases
Some workers are exempt from the standard New Mexico minimum wage. These include:
- Tipped employees: Subject to the tipped minimum wage rules outlined above.
- Apprentices and learners: May be paid a lower wage under specific conditions.
- Employees with disabilities: Employers with special certificates can pay a subminimum wage, generally 50% of the standard rate.
Additional New Mexico Wage Laws
Beyond the minimum wage, several other wage laws impact employers in New Mexico.
Payroll Deductions and Schedules
Employers must pay all owed wages in full, except for lawful deductions or those authorized by the employee in writing. Paydays cannot be more than 16 days apart, with specific deadlines for wage payments based on earnings periods.
Pay Stubs and Final Paychecks
Detailed pay stubs, either paper or electronic, must accompany each paycheck. Final paychecks for fired employees are due within five days of termination, while those for employees who quit are due by the next payday. Accrued, unused PTO is considered earned wages.
Meals, Rest Breaks, and Overtime
New Mexico doesn’t mandate meal or rest breaks, but breaks under 30 minutes must be paid. Non-exempt employees are entitled to overtime pay at 1.5 times their regular rate for hours worked over 40 in a week.
Paid Sick Leave
The Healthy Workplaces Act requires employers with one or more employees to provide at least 64 hours of paid sick leave annually.
Best Practices for Compliance
Staying informed, maintaining accurate records, classifying employees correctly, implementing accurate payroll practices, tracking overtime, and using appropriate payroll software are crucial for compliance with New Mexico wage laws.
Leveraging Technology for Compliance
Employee record management software automates tasks like time tracking and payroll, reducing errors and ensuring compliance.
Utilizing Payroll Software
Robust payroll software automatically adjusts for minimum wage changes, manages tax withholdings, and generates accurate pay stubs, simplifying compliance. Factorial offers features like payroll processing, holiday pay management, overtime tracking, and electronic time clocks to assist with compliance. These tools help businesses navigate complex wage and hour regulations, allowing them to focus on growth.
