Minimum Wage Requirements in New Mexico 2024

Overview of New Mexico's Minimum Wage Requirements

As of 2024, the minimum wage in New Mexico is set at $12.00 per hour. This is significantly higher than the Federal Minimum Wage of $7.25 per hour. Employers in New Mexico are required to pay premium pay after 40 hours of work in a week. This means that any hours worked over the standard 40-hour workweek must be compensated at a higher rate, typically time-and-a-half.

It's important to note that minimum wage laws can vary from state to state, and are generally controlled by legislative activities within the individual states. In states where the state minimum wage is greater than the federal minimum wage, the state minimum wage prevails. As of the last update, there are 29 states plus the District of Columbia, Guam, and the Virgin Islands with minimum wage rates set higher than the federal minimum wage. New Mexico is one of these states.

Understanding Local Minimum Wage Variations

In New Mexico, several cities and municipalities have established their own minimum wage rates. For instance, Albuquerque and Las Cruces have a minimum wage of $12.00, while Santa Fe and Santa Fe county have a minimum wage of $14.03.

it's critical for businesses to be aware of these variations and ensure they are paying their employees the highest available rate if there are different minimum wage rates enforced by the state, federal, city, or county. The prevailing minimum wage in the City of Albuquerque is the higher minimum wage between the New Mexico Minimum Wage Act and the City of Albuquerque Minimum Wage Ordinance.

Minimum Wage Eligibility and Exemptions

In New Mexico, most employees are eligible for the state minimum wage of $12.00 per hour. However, there are several exemptions to this rule. Exemptions include individuals employed in an executive, administrative, or professional capacity, forepersons, superintendents, and supervisors. Employees of the United States, the state, or any political subdivision of the state are also exempt.

Tipped employees are eligible for a minimum wage of $3.00 per hour. However, if their tips combined with the hourly rate do not equal at least $12.00 per hour, the employer is required to make up the difference. A tipped employee in New Mexico is defined as an employee who receives more than $30 in tips monthly.

Minimum Wage Considerations and Compliance Tips

Food business employers in New Mexico must adhere to several key minimum wage legal and compliance considerations. The basic combined cash and tip minimum wage rate is $12.00. Employers can claim a maximum tip credit against the minimum wage of $9.00, meaning they must pay a minimum cash wage of $3.00 to their tipped employees.

Employers are also required to pay one and one-half times the employee’s regular hourly rate of pay for all hours worked in excess of forty hours in a week. Employers must post a summary of the Minimum Wage Act in a conspicuous place on or about the premises where any person subject to the Act is employed. Violations of the Act can result in penalties, including being liable to the employees affected in the amount of their unpaid or underpaid minimum wages plus interest, and an additional amount equal to twice the unpaid or underpaid wages.

FAQs

• What is the minimum wage in New Mexico? As of 2024, the minimum wage in New Mexico is set at $12.00 per hour.
• Who is eligible for minimum wage in New Mexico? Most employees are eligible for the state minimum wage of $12.00 per hour, with several exemptions.
• What is the minimum wage for tipped employees in New Mexico? Tipped employees are eligible for a minimum wage of $3.00 per hour.

Information Source Links

• U.S. Department of Labor's page on minimum wage for tipped employees
• 2019 Amendment to the Minimum Wage Act
• New Mexico Minimum Wage Act

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