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HOUSE BILL 305
57TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 2025
INTRODUCED BY
Rebecca Dow and Miguel P. Garc ía
AN ACT
RELATING TO PUBLIC CONTRACTS; REQUIRING THAT PUBLIC CONTRACTS
PROVIDE FOR INCREASED CONTRACTOR AND SUBCONTRACTOR
REIMBURSEMENT AND WORKER WAGE INCREASES IN ACCORDANCE WITH AND
CONCURRENT WITH STATE MINIMUM WAGE INCREASES OR INCREASED COSTS
AS MANDATED BY LAW.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. A new section of the Minimum Wage Act is
enacted to read:
"[NEW MATERIAL] PUBLIC CONTRACTS--SERVICES--MINIMUM WAGE
INCREASES--INCREASES IN COST MANDATED BY LAW.--
A. Beginning July 1, 2025, a state agency that
contracts for services shall include in the terms of that
contract:
(1) a provision for increasing reimbursement
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[bracketed material] = delete
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so that the contractor and any subcontractor to that contract
are held harmless for any wage increase resulting from an
increase in the state minimum wage or cost increase resulting
from a change to statutory benefits; and
(2) a requirement that individuals employed
pursuant to that contract or a subcontract of that contract who
are paid the state minimum wage shall receive wage increases in
accordance with and concurrent with increases in the state
minimum wage.
B. As used in this section:
(1) "contract" means any agreement for the
procurement of services;
(2) "services" means the furnishing of labor,
time or effort by a contractor or subcontractor not involving
the delivery of a specific end product other than reports and
other materials that are merely incidental to the required
performance;
(3) "statutory benefits" means any benefit
that an employer is required by state law to provide to the
employer's employees; and
(4) "subcontract" means a contract subordinate
to another superordinate contract, which subcontract is to
procure in whole or in part services to be procured under the
terms of the superordinate contract."
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