What Is the Minimum Wage in New Mexico State?
With a few exceptions, the minimum wage for much of New Mexico is $9 per hour. This is $1.75 over the rate that the federal minimum wage law mandates. Employers and employees alike may also want to know that several cities throughout New Mexico pay higher wages than $9.
Table of Contents
- 1 2020 Minimum Wage in New Mexico: $9.00 per hour
- 2 New Mexico Minimum Wage Increase News
- 3 Albuquerque Minimum Wage
- 4 Bernalillo County Minimum Wage
- 5 City of Santa Fe Minimum Wage
- 6 Las Cruces Minimum Wage
- 7 Santa Fe County Minimum Wage
2020 Minimum Wage in New Mexico: $9.00 per hour
Although some cities and counties have set a higher rate, the state minimum wage for New Mexico is $9. There are, however, exemptions and special circumstances particular to minimum wage law. Certain employees such as workers who make tips, those who work overtime, and people who are paid on salary are just a few people who may see differences in their paycheck, even if they’re all paid minimum wage.
By calculating weekly and annual pay, New Mexico employees can understand how their wages may fluctuate according to these circumstances.
Tipped: $2.35 per hour
New Mexico employers must pay tipped employees an hourly rate of at least $2.35 per hour. If the tips plus the hourly rate do not equal at least $9 per hour, the employer must make up the difference. Tipped employees have a right to keep all of their tips.
New Mexico employers can deduct a tip credit of $5.37 from tipped employees’ hourly minimum wage. A worker is considered a tipped employee by the state of New Mexico if they make $30 or more in tips during their regular duties in a month.
Tipped employees in NM may also enter into a tip pool, in which “employees chip in a portion of their tips, which are then divided among a group of employees.” Tip pools are only for employees who regularly earn tips and may not be accessed by managers or supervisors.
Employees in New Mexico who work for minimum wage will earn $360 in a standard, 40-hour workweek. This weekly total does not factor in state and federal tax deductions, sick days, or unpaid time off, which will likely lower this total. This weekly income may be higher if you work overtime, or if an employer offers holiday pay — which may include overtime as well.
If a worker makes an estimated $360 per week, then that employee will make $18,720 a year on minimum wage in New Mexico. As with your weekly total, this calculation does not include state and federal tax deductions, overtime, and/or holiday pay.
Overtime: $13.50 per hour
Unless specifically exempted, employees covered by the FLSA must receive overtime pay for any hours worked above the 40-hour-per-week standard. New Mexico employees are covered by the Fair Labor Standards Act (FLSA), which establishes an overtime pay of time-and-a-half. This means that for every hour you work over the standard 40 hours, you will earn your normal minimum wage ($9) plus half ($4.50) — which will equal $13.50 per overtime hour.
According to the 2020 New Mexico Minimum Wage Act, employers who violate the minimum wage or overtime requirements are required to pay impacted employees the full amount of their underpaid wages plus interest, plus an additional amount equal to twice the underpaid wages.
New Mexico Minimum Wage Increase News
The New Mexico Department of Workforce Solutions states the upcoming New Mexico minimum wage increases for the future.
- Effective January 1, 2021: $10.50 per hour;
$2.55 per hour for tipped employees;
- Effective January 1, 2022: $11.50 per hour;
$2.80 per hour for tipped employees;
- Effective January 1, 2023: $12.00 per hour;
$3.00 per hour for tipped employees.
Sarah Hyde, the research and policy analyst for the minimum-wage-raise legislation, states, “This achievable policy reform will vastly improve the state’s overall well-being and gives families, children, older adults, people of color, and women more opportunities to thrive.”
This minimum wage increase comes from observing the municipalities above, and how their increase in wages has benefitted the families of local communities. The increase is said to affect nearly 20% of the New Mexico workforce and add an estimated $205 million to the paychecks of New Mexican workers, or $833 per individual worker.
Albuquerque Minimum Wage
Here’s the rundown on the 2020 Albuquerque minimum wage, which is higher than the state’s:
- As of January 1, 2020, the minimum wage is $9.35 per hour worked;
- As of January 1, 2020, the minimum wage is $8.35 if the employee’s employer provides healthcare and/or childcare benefits to the employee during any pay period and the employer pays an amount for these benefits equal to or in excess of an annualized cost of $2,500;
- As of Jan. 1, 2020, the minimum wage for tipped employees is $5.60.
Bernalillo County Minimum Wage
The 2020 Bernalillo County minimum wage also took effect on January 1, 2020.
- As of January 1, 2020, the minimum wage is $9.20 per hour worked;
- As of January 1, 2020, the minimum wage for tipped employees is $2.13. If the tipped employee’s hourly take-home pay does not equal or exceed $9.20 per hour with tips, the employer shall pay the employee the difference between the pay received and $9.20.
City of Santa Fe Minimum Wage
This city’s 2020 minimum wage requirements haven’t changed from the 2019 Santa Fe minimum wage requirements.
- The minimum wage will remain $11.80 per hour worked;
- The minimum wage for tipped employees will remain $2.13 per hour worked, plus tips to equal $11.80.
Las Cruces Minimum Wage
Pursuant to Las Cruces Municipal Code (LCMC), the minimum wage in the city limits of Las Cruces will increase by 1.5% of $10.10 per hour in 2019.
- As of January 1, 2020, the minimum wage is $10.25 per hour worked;
- As of January 1, 2020, the minimum wage for tipped employees is $4.10 per hour worked, an increase from $4.04 in 2019.
Santa Fe County Minimum Wage
The 2020 minimum wage in Santa Fe County remains the same from 2019.
- The minimum wage will remain $11.40 per hour worked;
- The minimum wage for tipped employees will remain $3.41 per hour worked, plus tips, to equal $11.40.
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Desmond Rhodes is a writer out of the Northwest. A philosopher, gamer, and enjoys his Hunter S. Thompson.
This post was updated February 10, 2020. It was originally published July 3, 2019.