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New Mexico Minimum Wage Increase

On March 1, 2019, New Mexico Governor Michelle Lujan Grisham signed Senate Bill 437, raising the state’s minimum wage for the first time in a decade from $7.50 an hour to $12 by 2023. The first increase to $9 an hour goes into effect at the start of 2020.

The law will go into effect on January 1, 2020.

The law permits employers to consider tips as part of wages, but the tips combined with the employer’s cash wage may not be less than the state’s applicable minimum wage rate. Additionally, tipped employees must retain all tips they receive; however, the new law specifies that tip pooling among wait staff (rather than just among employees) is permitted.

Lastly, the law also provides a separate minimum wage of $8.50 for employed secondary school students as of January 1, 2020.