New Mexico 2025 Regular Session

New Mexico House Bill HB522 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	underscored material = new
2	2	[bracketed material] = delete
3	3	1
4	4	2
5	5	3
6	6	4
7	7	5
8	8	6
9	9	7
10	10	8
11	11	9
12	12	10
13	13	11
14	14	12
15	15	13
16	16	14
17	17	15
18	18	16
19	19	17
20	20	18
21	21	19
22	22	20
23	23	21
24	24	22
25	25	23
26	26	24
27	27	25
28	28	HOUSE BILL 522
29	29	57
30	30	TH LEGISLATURE
31	31	-
32	32
33	33	STATE
34	34
35	35	OF
36	36
37	37	NEW
38	38
39	39	MEXICO
40	40
41	41	-
42	42	FIRST SESSION
43	43	,
44	44
45	45	2025
46	46	INTRODUCED BY
47	47	Miguel P. García
48	48	AN ACT
49	49	RELATING TO LABOR; PROVIDING AN ANNUAL COST-OF-LIVING INCREASE
50	50	TO THE STATE MINIMUM WAGE RATE BEGINNING IN 2026; PROVIDING
51	51	THAT CERTAIN TIPPED EMPLOYEES RECEIVE AN HOURLY RATE THAT IS
52	52	TWENTY-FIVE PERCENT OF THE PREVAILING HOURLY MINIMUM WAGE RATE
53	53	PLUS TIPS; REQUIRING THAT PUBLIC CONTRACTS PROVIDE FOR
54	54	INCREASED CONTRACTOR AND SUBCONTRACTOR REIMBURSEMENT AND WORKER
55	55	WAGE INCREASES IN ACCORDANCE WITH AND CONCURRENT WITH STATE
56	56	MINIMUM WAGE INCREASES; ADDING A DEFINITION OF "CONSUMER PRICE
57	57	INDEX" TO THE MINIMUM WAGE ACT.
58	58	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
59	59	SECTION 1. A new section of the Minimum Wage Act is
60	60	enacted to read:
61	61	"[NEW MATERIAL] PUBLIC CONTRACTS--SERVICES--MINIMUM WAGE
62	62	INCREASES.--
63	63	.229699.2 underscored material = new
64	64	[bracketed material] = delete
65	65	1
66	66	2
67	67	3
68	68	4
69	69	5
70	70	6
71	71	7
72	72	8
73	73	9
74	74	10
75	75	11
76	76	12
77	77	13
78	78	14
79	79	15
80	80	16
81	81	17
82	82	18
83	83	19
84	84	20
85	85	21
86	86	22
87	87	23
88	88	24
89	89	25
90	90	A. Beginning July 1, 2025, a state agency that
91	91	contracts for services shall include in the terms of that
92	92	contract:
93	93	(1) a provision for increasing reimbursement
94	94	so the contractor and any subcontractor to that contract are
95	95	held harmless for any wage increase resulting from an increase
96	96	in the state minimum wage; and
97	97	(2) a requirement that individuals employed
98	98	pursuant to that contract or a subcontract of that contract who
99	99	are paid the state minimum wage shall receive wage increases in
100	100	accordance with and concurrent with increases in the state
101	101	minimum wage.
102	102	B. As used in this section:
103	103	(1) "contract" means any agreement for the
104	104	procurement of services;
105	105	(2) "services" means the furnishing of labor,
106	106	time or effort by a contractor or subcontractor not involving
107	107	the delivery of a specific end product other than reports and
108	108	other materials that are merely incidental to the required
109	109	performance; and
110	110	(3) "subcontract" means a contract subordinate
111	111	to another superordinate contract, which subcontract is to
112	112	procure in whole or in part services to be procured under the
113	113	terms of the superordinate contract."
114	114	SECTION 2. Section 50-4-21 NMSA 1978 (being Laws 1955,
115	115	.229699.2
116	116	- 2 - underscored material = new
117	117	[bracketed material] = delete
118	118	1
119	119	2
120	120	3
121	121	4
122	122	5
123	123	6
124	124	7
125	125	8
126	126	9
127	127	10
128	128	11
129	129	12
130	130	13
131	131	14
132	132	15
133	133	16
134	134	17
135	135	18
136	136	19
137	137	20
138	138	21
139	139	22
140	140	23
141	141	24
142	142	25
143	143	Chapter 200, Section 2, as amended) is amended to read:
144	144	"50-4-21. DEFINITIONS.--As used in the Minimum Wage Act:
145	145	A. "consumer price index" means the consumer price
146	146	index, not seasonally adjusted, for all urban consumers, United
147	147	States city average for all items or its successor index, as
148	148	published by the United States department of labor for a
149	149	twelve-month period ending on September 30;
150	150	[A.] B. "employ" includes suffer or permit to work;
151	151	[B.] C. "employer" includes any individual,
152	152	partnership, association, corporation, business trust, legal
153	153	representative or organized group of persons employing one or
154	154	more employees at any one time, acting directly or indirectly
155	155	in the interest of an employer in relation to an employee, but
156	156	shall not include the United States, the state or any political
157	157	subdivision of the state; provided, however, that for the
158	158	purposes of Subsection A of Section 50-4-22 NMSA 1978,
159	159	"employer" includes the state or any political subdivision of
160	160	the state; and
161	161	[C.] D. "employee" includes an individual employed
162	162	by an employer, but shall not include:
163	163	(1) an individual employed in a bona fide
164	164	executive, administrative or professional capacity and
165	165	forepersons, superintendents and supervisors;
166	166	(2) an individual employed by the United
167	167	States, the state or any political subdivision of the state;
168	168	.229699.2
169	169	- 3 - underscored material = new
170	170	[bracketed material] = delete
171	171	1
172	172	2
173	173	3
174	174	4
175	175	5
176	176	6
177	177	7
178	178	8
179	179	9
180	180	10
181	181	11
182	182	12
183	183	13
184	184	14
185	185	15
186	186	16
187	187	17
188	188	18
189	189	19
190	190	20
191	191	21
192	192	22
193	193	23
194	194	24
195	195	25
196	196	provided, however, that for the purposes of Subsection A of
197	197	Section 50-4-22 NMSA 1978, "employee" includes an individual
198	198	employed by the state or any political subdivision of the
199	199	state;
200	200	(3) an individual engaged in the activities of
201	201	an educational, charitable, religious or nonprofit organization
202	202	where the employer-employee relationship does not, in fact,
203	203	exist or where the services rendered to such organizations are
204	204	on a voluntary basis. The employer-employee relationship shall
205	205	not be deemed to exist with respect to an individual being
206	206	served for purposes of rehabilitation by a charitable or
207	207	nonprofit organization, notwithstanding the payment to the
208	208	individual of a stipend based upon the value of the work
209	209	performed by the individual;
210	210	(4) salespersons or employees compensated upon
211	211	piecework, flat rate schedules or commission basis;
212	212	(5) registered apprentices and learners
213	213	otherwise provided by law;
214	214	(6) G.I. bill trainees while under training;
215	215	(7) seasonal employees of an employer
216	216	obtaining and holding a valid certificate issued annually by
217	217	the director of the labor relations division of the workforce
218	218	solutions department. The certificate shall state the job
219	219	designations and total number of employees to be exempted. In
220	220	approving or disapproving an application for a certificate of
221	221	.229699.2
222	222	- 4 - underscored material = new
223	223	[bracketed material] = delete
224	224	1
225	225	2
226	226	3
227	227	4
228	228	5
229	229	6
230	230	7
231	231	8
232	232	9
233	233	10
234	234	11
235	235	12
236	236	13
237	237	14
238	238	15
239	239	16
240	240	17
241	241	18
242	242	19
243	243	20
244	244	21
245	245	22
246	246	23
247	247	24
248	248	25
249	249	exemption, the director shall consider the following:
250	250	(a) whether such employment shall be at
251	251	an educational, charitable or religious youth camp or retreat;
252	252	(b) that such employment will be of a
253	253	temporary nature;
254	254	(c) that the individual will be
255	255	furnished room and board in connection with such employment, or
256	256	if the camp or retreat is a day camp or retreat, the individual
257	257	will be furnished board in connection with such employment;
258	258	(d) the purposes for which the camp or
259	259	retreat is operated;
260	260	(e) the job classifications for the
261	261	positions to be exempted; and
262	262	(f) any other factors that the director
263	263	deems necessary to consider;
264	264	(8) any employee employed in agriculture:
265	265	(a) if the employee is employed by an
266	266	employer who did not, during any calendar quarter during the
267	267	preceding calendar year, use more than five hundred person-days
268	268	of agricultural labor;
269	269	(b) if the employee is the parent,
270	270	spouse, child or other member of the employer's immediate
271	271	family; for the purpose of this subsection, the employer shall
272	272	include the principal stockholder of a family corporation;
273	273	(c) if the employee: 1) is employed as
274	274	.229699.2
275	275	- 5 - underscored material = new
276	276	[bracketed material] = delete
277	277	1
278	278	2
279	279	3
280	280	4
281	281	5
282	282	6
283	283	7
284	284	8
285	285	9
286	286	10
287	287	11
288	288	12
289	289	13
290	290	14
291	291	15
292	292	16
293	293	17
294	294	18
295	295	19
296	296	20
297	297	21
298	298	22
299	299	23
300	300	24
301	301	25
302	302	a hand-harvest laborer and is paid on a piece-rate basis in an
303	303	operation that has been, and is customarily and generally
304	304	recognized as having been, paid on a piece-rate basis in the
305	305	region of employment; 2) commutes daily from the employee's
306	306	permanent residence to the farm on which the employee is so
307	307	employed; and 3) has been employed in agriculture less than
308	308	thirteen weeks during the preceding calendar year;
309	309	(d) if the employee, other than an
310	310	employee described in Subparagraph (c) of this paragraph: 1)
311	311	is sixteen years of age or under and is employed as a hand-
312	312	harvest laborer, is paid on a piece-rate basis in an operation
313	313	that has been, and is generally recognized as having been, paid
314	314	on a piece-rate basis in the region of employment; 2) is
315	315	employed on the same farm as the employee's parent or person
316	316	standing in the place of the parent; and 3) is paid at the same
317	317	piece-rate as employees over age sixteen are paid on the same
318	318	farm; or
319	319	(e) if the employee is principally
320	320	engaged in the range production of livestock or in milk
321	321	production;
322	322	(9) an employee engaged in the handling,
323	323	drying, packing, packaging, processing, freezing or canning of
324	324	any agricultural or horticultural commodity in its
325	325	unmanufactured state; or
326	326	(10) employees of charitable, religious or
327	327	.229699.2
328	328	- 6 - underscored material = new
329	329	[bracketed material] = delete
330	330	1
331	331	2
332	332	3
333	333	4
334	334	5
335	335	6
336	336	7
337	337	8
338	338	9
339	339	10
340	340	11
341	341	12
342	342	13
343	343	14
344	344	15
345	345	16
346	346	17
347	347	18
348	348	19
349	349	20
350	350	21
351	351	22
352	352	23
353	353	24
354	354	25
355	355	nonprofit organizations who reside on the premises of group
356	356	homes operated by such charitable, religious or nonprofit
357	357	organizations for persons who have a mental, emotional or
358	358	developmental disability."
359	359	SECTION 3. Section 50-4-22 NMSA 1978 (being Laws 1955,
360	360	Chapter 200, Section 3, as amended) is amended to read:
361	361	"50-4-22. MINIMUM WAGES.--
362	362	A. Except as provided in Subsection C of this
363	363	section, an employer shall pay to an employee a minimum wage
364	364	rate of
365	365	[(1) prior to January 1, 2020, at least seven
366	366	dollars fifty cents ($7.50) an hour;
367	367	(2) beginning January 1, 2020 and prior to
368	368	January 1, 2021, at least nine dollars ($9.00) an hour;
369	369	(3) beginning January 1, 2021 and prior to
370	370	January 1, 2022, at least ten dollars fifty cents ($10.50) an
371	371	hour;
372	372	(4) beginning January 1, 2022 and prior to
373	373	January 1, 2023, at least eleven dollars fifty cents ($11.50)
374	374	an hour; and
375	375	(5) on and after January 1, 2023 ] at least
376	376	twelve dollars ($12.00) an hour. As of January 1, 2026 and on
377	377	January 1 of each successive year, the minimum wage rate shall
378	378	be increased by the increase in the cost of living as provided
379	379	in Subsection E of this section.
380	380	.229699.2
381	381	- 7 - underscored material = new
382	382	[bracketed material] = delete
383	383	1
384	384	2
385	385	3
386	386	4
387	387	5
388	388	6
389	389	7
390	390	8
391	391	9
392	392	10
393	393	11
394	394	12
395	395	13
396	396	14
397	397	15
398	398	16
399	399	17
400	400	18
401	401	19
402	402	20
403	403	21
404	404	22
405	405	23
406	406	24
407	407	25
408	408	B. An employer furnishing food, utilities, supplies
409	409	or housing to an employee who is engaged in agriculture may
410	410	deduct the reasonable value of such furnished items from any
411	411	wages due to the employee.
412	412	C. An employee who customarily and regularly
413	413	receives more than thirty dollars ($30.00) a month in tips
414	414	shall be paid a minimum hourly wage [as follows:
415	415	(1) prior to January 1, 2020, at least two
416	416	dollars thirteen cents ($2.13) an hour;
417	417	(2) beginning January 1, 2020 and prior to
418	418	January 1, 2021, at least two dollars thirty-five cents ($2.35)
419	419	an hour;
420	420	(3) beginning January 1, 2021 and prior to
421	421	January 1, 2022, at least two dollars fifty-five cents ($2.55)
422	422	an hour;
423	423	(4) beginning January 1, 2022 and prior to
424	424	January 1, 2023, at least two dollars eighty cents ($2.80) an
425	425	hour;
426	426	(5) on and after January 1, 2023, at least
427	427	three dollars ($3.00) an hour; and
428	428	(6) the employer may consider tips as part of
429	429	wages, but the tips combined with the employer's cash wage
430	430	shall not equal less than the minimum wage rate as provided in
431	431	Subsection A of this section ] that is twenty-five percent of
432	432	the prevailing hourly minimum wage rate at the time the hours
433	433	.229699.2
434	434	- 8 - underscored material = new
435	435	[bracketed material] = delete
436	436	1
437	437	2
438	438	3
439	439	4
440	440	5
441	441	6
442	442	7
443	443	8
444	444	9
445	445	10
446	446	11
447	447	12
448	448	13
449	449	14
450	450	15
451	451	16
452	452	17
453	453	18
454	454	19
455	455	20
456	456	21
457	457	22
458	458	23
459	459	24
460	460	25
461	461	were worked; provided that the employer may consider tips as
462	462	part of wages, but the tips combined with the employer's cash
463	463	wage shall not equal less than the minimum wage rate as
464	464	provided in Subsection A of this section . All tips received by
465	465	such employees shall be retained by the employee, except that
466	466	nothing in this section shall prohibit the pooling of tips
467	467	among wait staff.
468	468	D. An employee shall not be required to work more
469	469	than forty hours in any week of seven days, unless the employee
470	470	is paid one and one-half times the employee's regular hourly
471	471	rate of pay for all hours worked in excess of forty hours. For
472	472	an employee who is paid a fixed salary for fluctuating hours
473	473	and who is employed by an employer a majority of whose business
474	474	in New Mexico consists of providing investigative services to
475	475	the federal government, the hourly rate may be calculated in
476	476	accordance with the provisions of the federal Fair Labor
477	477	Standards Act of 1938 and the regulations pursuant to that act;
478	478	provided that in no case shall the hourly rate be less than the
479	479	federal minimum wage.
480	480	E. On January 1, 2026 and on January 1 of each
481	481	successive year, the minimum wage rate shall be increased by
482	482	the increase in the cost of living. The increase in the cost
483	483	of living shall be adjusted by multiplying the minimum wage as
484	484	of January 1, 2025 by a fraction, the numerator of which is the
485	485	consumer price index ending in September of the previous year
486	486	.229699.2
487	487	- 9 - underscored material = new
488	488	[bracketed material] = delete
489	489	1
490	490	2
491	491	3
492	492	4
493	493	5
494	494	6
495	495	7
496	496	8
497	497	9
498	498	10
499	499	11
500	500	12
501	501	13
502	502	14
503	503	15
504	504	16
505	505	17
506	506	18
507	507	19
508	508	20
509	509	21
510	510	22
511	511	23
512	512	24
513	513	25
514	514	and the denominator of which is the consumer price index ending
515	515	in September 2024, with the amount of the minimum wage rate
516	516	increase rounded to the nearest multiple of five cents ($.05);
517	517	provided that the minimum wage rate shall not exceed one
518	518	hundred four percent of the minimum wage in the prior year and
519	519	shall not decrease from the minimum wage in the prior year. By
520	520	November 1, 2025 and by November 1 of each successive year, the
521	521	workforce solutions department shall publish on its website or
522	522	otherwise notify employers of the minimum wage for the
523	523	following year."
524	524	SECTION 4. EFFECTIVE DATE.--The effective date of the
525	525	provisions of this act is July 1, 2025.
526	526	- 10 -
527	527	.229699.2