What Is the Minimum Wage in New Mexico?

Desmond Rhodes  | 

With a few exceptions, the minimum wage for much of New Mexico is $7.50 per hour. This is $.25 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 $7.50.

Additionally, in 2019, New Mexico passed Senate Bill 437 — which will increase the state minimum wage to $12 per hour by 2022. Knowing how much an employee should be making in New Mexico is necessary for the fair pay of New Mexico residents.

2019 Minimum Wage in New Mexico: $7.50 per hour

Although some cities and counties have set a higher rate, the state minimum wage for New Mexico is $7.50. 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: $7.50 per hour

New Mexico employers can deduct a tip credit of $5.37 from tipped employees’ hourly minimum wage. This means that an employer can pay a $2.13 ($7.50 – $5.37) hourly wage to their employees — if the employee makes enough tips to equal, or surpass, the required minimum wage of $7.50 per hour. 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.

Weekly: $300.00 per week

Employees of New Mexico will earn $300 ($7.50 x 40) 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.

Annually: $15,600.00 per year

If a worker makes an estimated $300 per week, and there are 52 weeks in a year, then that employee will make $15,600 ($300 x 52) 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: $11.25 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 ($7.50) plus half ($3.75) — which will equal $11.25 per overtime hour.

Other Wages Paid in New Mexico

As mentioned above, there are cities, counties, and municipalities that pay different wages within New Mexico. These locations and minimum wages include:

  • Albuquerque: $9.20 per hour. $8.20 per hour with healthcare benefits. Tipped employees will earn $5.50 per hour.
  • Santa Fe: $11.80 per hour.
  • Santa Fe County: $11.80. Tipped employees will earn $3.53 per hour.
  • Bernalillo County: $9.05 per hour.
  • Las Cruces: $10.10 per hour. Tipped employees will earn $4.04 per hour.

New Mexico Minimum Wage Increase News

Legislation has been passed to increase the New Mexico state minimum wage to $12 per hour incrementally by 2022. Sarah Hyde, the research and policy analyst of this legislation, states that “This achievable policy reform will vastly improve the state’s overall well-being and give 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 percent of the New Mexico workforce and add an estimated $205 million to the paychecks of New Mexican workers, or $833 per individual worker.

Image Source: https://depositphotos.com/

Desmond Rhodes is a writer out of the Northwest. A philosopher, gamer, and enjoys his Hunter S. Thompson.

This post was updated July 3, 2019. It was originally published July 3, 2019.