New Mexico: Minimum Wage Increase and Tip Pool Standards Revised


All Employers with NM Employees


January 1, 2020


Contact HR On-Call

(888) 378-2456

New Mexico’s minimum wage for covered non-exempt employees will increase to $9 per hour beginning in 2020, with annual increases up to $12 per hour in 2023. SB 437 also increases the minimum cash wage for employees who customarily and regularly receive more than $30 per month in tips to $2.35 per hour in 2020, with annual increases up to $3 per hour in 2023. These increases will also affect local minimum wage ordinances in Bernalillo County and the City of Santa Fe.

Additionally, SB 437 will limit permitted tip pooling to only be among “wait staff.” However, “wait staff” is not defined, leaving open questions for applicable employers.

Action Items

  1. Update projected budgets to account for increases in minimum wage.
  2. Update payroll processes to account for minimum wage increases.
  3. Review tip pooling procedures for compliance with the new rule.
  4. Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.

© 2019 ManagEase

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