New Mexico's statewide minimum wage now exceeds the federal floor, but several cities — most notably Santa Fe and Albuquerque — set their own higher local minimums. Tipped workers, students, and very small employers face slightly different rules.
Reached on January 1, 2023, after a multi-year phase-in. Adjustments since then are not automatic — they require legislative action — so always confirm the current rate before relying on it.
Santa Fe and Albuquerque both set higher local minimums tied to local cost-of-living formulas. Always check the city ordinance where the work is performed, not just where the employer is headquartered.
Tipped employees can be paid as little as $3.00/hr in cash, but the employer must "top up" if tips don't bring total earnings to at least the regular minimum wage. Local rules can require higher tipped rates.
NM follows federal FLSA: time-and-a-half for hours worked over 40 in a week, with the same exemptions for executive, administrative, and professional employees.
Limited subminimum wages exist for certain student-learners (under specific approval) and workers with disabilities (under federal Section 14(c) certificates). These are narrow and shrinking categories.
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