Update to New Mexico’s Minimum Wage Act

The New Mexico Department of Workforce Solutions (DWS) has released an update to the Minimum Wage Act notice, which includes important information for both employees and employers.

Before we share all the details, please note that New Mexico’s minimum wage has not been increased—it is still $7.50 per hour.

What’s New for Employees and Employers?

Employees Who Receive Tips

The updated notice states that if employees’ tips plus the hourly tipped wage of $2.13 do not equal at least the minimum wage of $7.50 per hour, employers are required to make up the difference. In addition, tipped employees have a right to keep all their tips.

Enforcement of the Minimum Wage Act

The Labor Relations Division of the DWS can now recover back wages for employees who have been underpaid in violation of the law, going back at least 3 years, or longer for continuing wage violations—regardless of the dollar amount of the claim.

Employers should note that violations of the law may result in a civil or criminal action.

Exemptions From Minimum Wage or Overtime Pay

The previous notice included information on particular professions and employers that were exempt from the minimum wage and overtime pay provisions. The current notice states that certain jobs or employers are exempt from these provisions.

Local Minimum Wages

The notice now lists the cities and counties in New Mexico that have higher minimum wages than the state: the City of Albuquerque, the City of Las Cruces, the City of Santa Fe, Bernalillo County, and Santa Fe County.

Additional Information

Contact information for local offices where suspected wage violations could previously be reported has been removed from the notice. Employees who need more information about the Minimum Wage Act or want to file a wage claim can now contact the Labor Relations Division at 505-841-4400, or online at the following web address: www.dws.state.nm.us

What Hasn’t Changed?

Damages

Employers who violate the minimum wage or overtime requirements are required to pay impacted employees the total amount of their underpaid wages plus interest, as well as an additional amount equal to twice the underpaid wages.

Retaliation

Employers may not retaliate against employees who file a wage claim or inform other employees of their rights under the Minimum Wage Act.

We Make Compliance Easy

If you order our 1-Year Compliance Plan, you will automatically receive the updated New Mexico poster as soon as it is available. And because we provide free poster updates for mandatory changes, no matter how many occur during the plan year, you can always count on Poster Compliance Center to keep you in compliance.