New Mexico to Raise Minimum Wage to $12 by 2023

Author: Michael Cardman, XpertHR Legal Editor

April 2, 2019

New Mexico is the latest state to enact a law to increase its minimum wage.

California, the District of Columbia, Illinois, Massachusetts, New Jersey, New York and about three dozen cities, towns and counties have, or are on track to have, a $15 minimum wage.

But New Mexico is setting its sights on a more modest $12 minimum wage and foregoing the annual inflation adjustments adopted in many states, following several weeks of negotiations between lawmakers.

Gov. Michelle Lujan Grisham claimed credit for brokering the compromise. "I commend lawmakers who did not allow perfect to be the enemy of good as we worked toward the finish line on this measure," she said. "I made my preferences for the statewide minimum wage increase abundantly clear on the campaign trail and in my first months in office, and I am pleased to be moving forward."

Under the new law, the minimum wage and the minimum cash wage for tipped employees will increase according to the following schedule:

Effective Date Minimum Wage Minimum Cash Wage for Tipped Employees Maximum Tip Credit
Current $7.50 $2.13 $5.37
January 1, 2020 $9.00 $2.35 $6.65
January 1, 2021 $10.50 $2.55 $7.95
January 1, 2022 $11.50 $2.80 $8.70
January 1, 2023 $12.00 $3.00 $9.00

New Mexico's new law also:

  • Specifies that only wait staff may participate in tip pools; and
  • Establishes a subminimum wage of $8.50 for students regularly enrolled in secondary school who work after school hours or when school is not in session, effective January 1, 2020.