By Payroll and Entitlements Editorial Staff
New Mexico will increase the minimum wage rate, effective January 1, 2020. Beginning January 1, 2020, the rate will be $9.00 an hour, $10.50, effective January 1, 2021, $11.50, effective January 1, 2022, and $12 effective January 1, 2023.
Exemptions: The minimum wage rates will not apply to:
- an individual employed in domestic service in or about a private home;
- an individual employed in a bona fide executive, administrative or professional capacity and forepersons, superintendents and supervisors;
- an individual employed by the United States,
- an individual engaged in the activities of an educational, charitable, religious or nonprofit organization where the employer-employee relationship does not, in fact, exist or where the services rendered to such organizations are on a voluntary basis. The employer-employee relationship shall not be deemed to exist with respect to an individual being served for purposes of rehabilitation by a charitable or nonprofit organization, notwithstanding the payment to the individual of a stipend based upon the value of the work performed by the individual;
- salespersons or employees compensated upon piecework, flat rate schedules or commission basis;
- registered apprentices and learners otherwise provided by law;
- persons eighteen years of age or under who are not students in a primary, secondary, vocational or training school;
- G.I. bill trainees while under training;
- seasonal employees of an employer obtaining and holding a valid certificate issued annually by the director of the labor relations division of the workforce solutions department. The certificate shall state the job designations and total number of employees to be exempted. In approving or disapproving an application for a certificate of exemption, the director shall consider the following: (a) whether such employment shall be at an educational, charitable or religious youth camp or retreat; (b) that such employment will be of a temporary nature; (c) that the individual will be furnished room and board in connection with such employment, or if the camp or retreat is a day camp or retreat, the individual will be furnished board in connection with such employment; d) the purposes for which the camp or retreat is operated; (e) the job classifications for the positions to be exempted; and (f) any other factors that the director deems necessary to consider;
- any employee employed in agriculture: (a) if the employee is employed by an employer who did not, during any calendar quarter during the preceding calendar year, use more than five hundred person-days of agricultural labor; (b) if the employee is the parent, spouse, child or other member of the employer's immediate family; for the purpose of this subsection, the employer shall include the principal stockholder of a family corporation; (c) if the employee: 1) is employed as a hand-harvest laborer and is paid on a piece-rate basis in an operation that has been, and is customarily and generally recognized as having been, paid on a piece-rate basis in the region of employment; 2) commutes daily from the employee's permanent residence to the farm on which the employee is so employed; and 3) has been employed in agriculture less than thirteen weeks during the preceding calendar year; (d) if the employee, other than an employee described in subparagraph (c) of this paragraph above: 1) is sixteen years of age or under and is employed as a hand-harvest laborer, is paid on a piece-rate basis in an operation that has been, and is generally recognized as having been, paid on a piece-rate basis in the region of employment; 2) is employed on the same farm as the employee's parent or person standing in the place of the parent; and 3) is paid at the same piece-rate as employees over age sixteen are paid on the same farm; or (e) if the employee is principally engaged in the range production of livestock or in milk production;
- an employee engaged in the handling, drying, packing, packaging, processing, freezing or canning of any agricultural or horticultural commodity in its unmanufactured state; or
- employees of charitable, religious or nonprofit organizations who reside on the premises of group homes operated by such charitable, religious or nonprofit organizations for persons who have a mental, emotional or developmental disability."
Students. Effective January 1, 2020, an employer who employs a student regularly enrolled in secondary school to work after school hours or when school is not in session must pay the student a minimum wage rate of at least eight dollars fifty cents $8.50 an hour.
Deductions from the minimum wage rate. An employer furnishing food, utilities, supplies or housing to an employee who is engaged in agriculture may deduct the reasonable value of such furnished items from any wages due to the employee.
Tips. An employee who customarily and regularly receives more than thirty dollars $30.00 a month in tips must be paid a minimum hourly wage as follows: beginning January 1, 2020, $2.35; beginning January 1, 2021, $2.55; beginning January 1, 2022, $2.80; on and after January 1, 2023, $3.00.
The employer may consider tips as part of wages, but the tips combined with the employer's cash wage shall not equal less than the minimum wage rate. All tips received by such employees shall be retained by the employee, except that nothing in this section shall prohibit the pooling of tips among wait staff. (S.B. 437 (CH 114) Laws 2019, approved April 1, 2019, and effective as noted above.)
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