New Mexico Employment Law 2026

2.1 Wage and Hour Rights

New Mexico law establishes comprehensive wage and hour protections for employees working in the state.

Minimum Wage

Current New Mexico Minimum Wage (2026): $12.00 per hour

According to New Mexico Statutes Annotated, Section 50-4-22:

“On and after January 1, 2023, at least twelve dollars ($12.00) an hour.”

Effective date: January 1, 2023
Current status: $12.00 per hour remains in effect for 2026

Source: New Mexico Minimum Wage Act
Citation: NMSA 1978, Section 50-4-22
Available at: https://www.nmlegis.gov/Sessions/23%20Regular/bills/house/HB0025.HTML
Last amended: 2023

Official confirmation:

According to the New Mexico Department of Workforce Solutions:

“The New Mexico minimum wage is $12.00 per hour.”

Source: NMDWS FAQ – What is the minimum wage?
Published by: New Mexico Department of Workforce Solutions
Available at: https://www.dws.state.nm.us/en-us/Labor-Relations/Resources/FAQs/what-is-the-minimum-wage
Last updated: January 1, 2023
Verified: January 19, 2026

Future Minimum Wage Increases

Note regarding proposed legislation: During the 2025 New Mexico legislative session, multiple bills were introduced that would have increased the minimum wage or established annual cost-of-living adjustments. As of January 19, 2026, these bills had not been enacted into law. The minimum wage remains $12.00 per hour.

Proposed bills reviewed:

• HB0246 (2025): Would have increased minimum wage to $17.00 per hour on January 1, 2026, with annual CPI adjustments beginning 2027
• HB0522 (2025): Would have established annual cost-of-living increases beginning January 1, 2026
• HB0025 (2023): Would have established a schedule of increases reaching $15.50 per hour by January 1, 2026

Status: None of these bills were enacted. The minimum wage remains $12.00 per hour statewide.

Verification: New Mexico Legislature website searches conducted January 19, 2026
Available at: https://www.nmlegis.gov/

Local Minimum Wages

Some New Mexico municipalities have established local minimum wages higher than the state minimum:

Las Cruces:

According to Las Cruces Municipal Code, the minimum wage for 2026:

“According to LCMC, the Las Cruces minimum wage will increase to $13.01 per hour and the tipped wage will increase to $5.20 per hour” effective January 1, 2026.

Source: City of Las Cruces Minimum Wage Notice for 2026
Published by: City of Las Cruces
Available at: https://lascruces.gov/minimum-wage-notice-for-2026/
Effective date: January 1, 2026
Verified: January 19, 2026

Albuquerque:

According to the City of Albuquerque:

“Effective January 1, 2026, the City of Albuquerque minimum wage is $11.85 per hour. However, the State of New Mexico’s $12.00 per hour minimum wage supersedes the City’s minimum wage and is the prevailing wage. This prevailing wage is $12.00 per hour.”

Source: City of Albuquerque Minimum Wage Information
Published by: City of Albuquerque
Available at: https://www.cabq.gov/legal/albuquerque-minimum-wage-information
Effective date: January 1, 2026
Verified: January 19, 2026

Applicable wage: The highest applicable minimum wage (federal, state, or local) applies

Tipped Employees

Tipped employee minimum wage (2026): $3.00 per hour

According to New Mexico Statutes Annotated, Section 50-4-22(C):

“An employee who customarily and regularly receives more than thirty dollars ($30.00) a month in tips shall be paid a minimum hourly wage as follows… on and after January 1, 2023, at least three dollars ($3.00) an hour; and the employer may consider tips as part of wages, but the tips combined with the employer’s cash wage shall not equal less than the minimum wage rate as provided in Subsection A of this section.”

Source: New Mexico Minimum Wage Act
Citation: NMSA 1978, Section 50-4-22(C)
Available at: https://www.nmlegis.gov/Sessions/23%20Regular/bills/house/HB0025.HTML

Requirements for tipped employees:

• Base wage: Minimum $3.00 per hour
• Tip credit: Tips must bring total compensation to at least $12.00 per hour
• Employer obligation: If tips plus base wage do not equal $12.00 per hour, employer must make up the difference
• Tip retention: All tips belong to the employee (subject to valid tip pooling)
• Tip pooling: Permitted among wait staff only

Overtime Requirements

New Mexico overtime law:

According to NMSA 1978, Section 50-4-22(D):

“An employee shall not be required to work more than forty hours in any week of seven days, unless the employee is paid one and one-half times the employee’s regular hourly rate of pay for all hours worked in excess of forty hours.”

Source: New Mexico Minimum Wage Act
Citation: NMSA 1978, Section 50-4-22(D)
Available at: https://www.nmlegis.gov/Sessions/23%20Regular/bills/house/HB0025.HTML

Overtime rate: 1.5 times the employee’s regular rate of pay
Overtime threshold: Hours worked over 40 in a workweek
Workweek definition: Any fixed and regularly recurring period of 168 hours (7 consecutive 24-hour periods)

Federal overtime law:

According to the Fair Labor Standards Act, 29 U.S.C. § 207(a)(1):

“Except as otherwise provided in this section, no employer shall employ any of his employees who in any workweek is engaged in commerce or in the production of goods for commerce, or is employed in an enterprise engaged in commerce or in the production of goods for commerce, for a workweek longer than forty hours unless such employee receives compensation for his employment in excess of the hours above specified at a rate not less than one and one-half times the regular rate at which he is employed.”

Source: Fair Labor Standards Act
Citation: 29 U.S.C. § 207(a)(1)
Official text: https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section207&num=0&edition=prelim
DOL guidance: https://www.dol.gov/agencies/whd/overtime

Overtime exemptions: Certain employees are exempt from overtime requirements, including:

• Executive, administrative, and professional employees meeting specific criteria
• Outside sales employees
• Certain computer employees
• Certain agricultural workers (specific exemptions apply)

Source for exemption criteria:

• Federal: 29 C.F.R. Part 541
• Official text: https://www.dol.gov/agencies/whd/fact-sheets/17a-overtime

Meal and Rest Breaks

New Mexico does not have state law requiring meal or rest breaks for adult employees.

Search conducted:

• New Mexico Legislature website: https://www.nmlegis.gov/
• Search terms: “meal break”, “rest break”, “employee breaks”
• Date: January 19, 2026
• Result: No relevant legislation found requiring meal or rest breaks for adult employees

Federal law:

According to the U.S. Department of Labor, Wage and Hour Division:

“Federal law does not require lunch or coffee breaks. However, when employers do offer short breaks (usually lasting about 5 to 20 minutes), federal law considers the breaks as compensable work hours that would be included in the sum of hours worked during the work week and considered in determining if overtime was worked.”

Source: U.S. Department of Labor
Available at: https://www.dol.gov/general/topic/workhours/breaks
Verified: January 19, 2026

For New Mexico employees:

Meal and rest break policies are determined by:

• Employer policy
• Employment contracts
• Collective bargaining agreements (if applicable)

Exceptions:

• Specific industries may have meal and rest break requirements under federal regulations
• Minors (employees under age 18) may have specific break requirements under child labor laws

Payment of Wages

Regular payday requirements:

According to NMSA 1978, Section 50-4-2:

“An employer in this state shall designate regular pay days, not more than sixteen days apart, as days fixed for the payment of wages to all employees paid in this state. The employer shall pay for services rendered from the first to the fifteenth days, inclusive, of any calendar month by the twenty-fifth day of the month during which services are rendered, and for all services rendered from the sixteenth to the last day of the month, inclusive, of any calendar month by the tenth day of the succeeding month.”

Source: New Mexico Wage Payment Act
Citation: NMSA 1978, Section 50-4-2
Available at: https://www.nmlegis.gov/sessions/11%20regular/bills/house/HB0212.html

Regular payday schedule:

• Work performed: Days 1-15 of month
• Payment due: By day 25 of same month
• Work performed: Days 16-end of month
• Payment due: By day 10 of following month

Alternative: Monthly payment permitted for professional, administrative, executive employees, and outside salespersons

Permissible payment methods:

According to NMSA 1978, Section 50-4-2(C), wages may be paid:

• In cash
• By check, payroll voucher, or draft convertible to cash on demand at full face value
• By direct deposit to employee’s account at a financial institution (with voluntary authorization)
• Via payroll card (with specific employee protections)

Final Paycheck

Timing of final wage payment:

According to NMSA 1978, Section 50-4-2:

Final wage payments follow the regular payday schedule. There is no requirement for immediate or accelerated payment upon termination.

Search conducted:

• New Mexico Legislature website: https://www.nmlegis.gov/
• Search terms: “final paycheck”, “termination wages”, “separation pay”
• Date: January 19, 2026
• Result: No statute requiring immediate payment of final wages upon termination

Requirements:

• Final wages must be paid on the next regular payday following termination
• All earned wages must be included
• Lawful deductions may be taken
• Payment must be made using an approved method

What must be included:

• All hours worked through last day
• Earned but unused vacation (if company policy provides for payout)
• Commissions earned
• Bonuses earned

Permissible deductions:

• Legally required deductions (taxes, garnishments)
• Deductions authorized by the employee in writing
• Deductions specifically stated in a written contract entered into at time of hiring

Wage Theft Protections

New Mexico law prohibits various forms of wage theft and provides remedies for employees.

Prohibited practices:

Employers may not:

• Fail to pay minimum wage
• Fail to pay overtime when required
• Misclassify employees as independent contractors to avoid paying wages
• Make unlawful deductions from wages
• Fail to pay on regular paydays
• Fail to pay all earned wages upon separation

Remedies available:

Employees who have not received proper wages may:

• File a wage claim with the New Mexico Department of Workforce Solutions, Labor Relations Division
• Pursue a civil action for unpaid wages
• Recover unpaid wages, liquidated damages, and attorney fees (where applicable)

Source: New Mexico Department of Workforce Solutions, Labor Relations Division
Available at: https://www.dws.state.nm.us/en-us/Labor-Relations/Labor-Information/Wage-and-Hour
Verified: January 19, 2026

2.2 Paid Sick Leave

New Mexico requires employers to provide paid sick leave to employees under the Healthy Workplaces Act.

Statutory Authority

The Healthy Workplaces Act went into effect on July 1, 2022.

According to the Healthy Workplaces Act, NMSA 1978, Sections 50-17-1 through 50-17-16:

“This act may be cited as the ‘Healthy Workplaces Act’.”

Source: Healthy Workplaces Act
Citation: NMSA 1978, Section 50-17-1
Effective date: July 1, 2022
Available at: https://www.nmlegis.gov/Sessions/21%20Regular/bills/house/HB0020.HTML

Coverage

Who is covered:

According to NMSA 1978, Section 50-17-2(C):

“’employee’ means an individual employed by an employer within New Mexico for more than eighty hours in a twelve-month period.”

Source: Healthy Workplaces Act
Citation: NMSA 1978, Section 50-17-2(C)
Available at: https://www.nmlegis.gov/Sessions/21%20Regular/bills/house/HB0020.HTML

Coverage includes:

• Full-time employees
• Part-time employees
• Seasonal employees
• Temporary employees

All employees who work more than 80 hours in New Mexico within a 12-month period are covered.

Who is not covered:

According to NMSA 1978, Section 50-17-2(D):

“’employer’ means an individual, partnership, association, corporation, business trust, legal representative or any organized group of persons employing one or more employees at any one time, acting directly or indirectly in the interest of an employer in relation to an employee, but shall not include the United States, any state or any political subdivision of the state.”

Exclusions:

• Federal government employees
• State government employees
• Employees of political subdivisions (county, municipal employees)
• Independent contractors (properly classified)

Accrual Rate

Standard accrual:

According to NMSA 1978, Section 50-17-3(A):

“Employees shall accrue a minimum of one hour of earned sick leave for every thirty hours worked; provided that employers may choose a higher accrual rate.”

Source: Healthy Workplaces Act
Citation: NMSA 1978, Section 50-17-3(A)
Available at: https://www.nmlegis.gov/Sessions/21%20Regular/bills/house/HB0020.HTML

Accrual rate: 1 hour of paid sick leave for every 30 hours worked

Alternative: Employers may front-load the full annual amount (64 hours) at the beginning of the year

Usage and Annual Cap

Annual usage cap:

According to NMSA 1978, Section 50-17-3(A):

“Such employees shall not be entitled to use more than sixty-four hours of earned sick leave per twelve-month period, unless the employer selects a higher limit.”

Maximum use per year: 64 hours (unless employer provides more)

Carryover:

According to NMSA 1978, Section 50-17-3(E):

“Earned sick leave shall carry over from one twelve-month period to the next; provided that an employer may choose a twelve-month period for earned sick leave accrual that differs from the calendar year; and provided further that an employer is not required to allow an employee to carry over more than sixty-four hours of earned sick leave.”

Carryover rules:

• Unused sick leave carries over to the next year
• Employer may cap carryover at 64 hours
• Total accrued hours may exceed 64 hours, but annual usage remains capped at 64 hours (unless employer provides more)

Permissible Uses

Allowed uses for earned sick leave:

According to NMSA 1978, Section 50-17-3(C), an employee may use earned sick leave:

“(1) for an employee’s mental or physical illness, injury or health condition; preventive medical care or diagnosis, care or treatment of a mental or physical illness, injury or health condition; or need for diagnosis, care or treatment by a health care provider related to an employee’s mental or physical illness, injury or health condition;

(2) for care of a family member with a mental or physical illness, injury or health condition; need for medical diagnosis, care or treatment of a mental or physical illness, injury or health condition; or need for preventive medical care;

(3) for meetings at the employee’s child’s school or place of care related to the child’s health or disability; or

(4) for absence necessary due to domestic abuse, sexual assault or stalking suffered by the employee or a family member of the employee.”

Source: Healthy Workplaces Act
Citation: NMSA 1978, Section 50-17-3(C)
Available at: https://www.nmlegis.gov/Sessions/21%20Regular/bills/house/HB0020.HTML

Summary of permitted uses:

1. Employee’s own illness, injury, or health condition
2. Medical appointments (preventive care, diagnosis, treatment)
3. Care for family member’s illness, injury, or health condition
4. School meetings related to child’s health or disability
5. Domestic abuse, sexual assault, or stalking situations (for employee or family member)

Definition of “family member”:

According to NMSA 1978, Section 50-17-2(E), “family member” is defined broadly to include:

• Child (biological, adopted, foster, stepchild, legal ward)
• Parent (biological, adoptive, foster, stepparent, legal guardian)
• Spouse or domestic partner
• Grandparent
• Grandchild
• Sibling

Notice and Documentation

Notice requirements:

According to NMSA 1978, Section 50-17-3(D):

“Earned sick leave shall be provided upon the oral or written request of an employee or an individual acting on the employee’s behalf.”

Documentation requirements:

According to NMSA 1978, Section 50-17-5:

“Documentation shall not be required for sick leave, except an employer may require reasonable documentation that sick leave has been used for a covered purpose if the employee uses three or more consecutive days of sick leave.”

Source: Healthy Workplaces Act
Citation: NMSA 1978, Section 50-17-5
Available at: https://www.nmlegis.gov/Sessions/21%20Regular/bills/house/HB0020.HTML

Rules:

• No documentation required for absences of 1-2 days
• Reasonable documentation may be required for 3+ consecutive days
• Documentation signed by health care professional is considered reasonable
• Employer cannot require details of medical condition
• For domestic abuse/sexual assault/stalking: police report, court document, or signed statement from advocate is reasonable documentation

Employer Obligations

Employer posting requirements:

According to NMSA 1978, Section 50-17-8:

“Employers shall display a poster that contains the information required pursuant to Subsection A of this section in a conspicuous and accessible place in each establishment where employees are employed. The poster displayed should be in English, Spanish and any language that is the first language spoken by at least ten percent of the employer’s workforce.”

Source: Healthy Workplaces Act
Citation: NMSA 1978, Section 50-17-8
Available at: https://www.nmlegis.gov/Sessions/21%20Regular/bills/house/HB0020.HTML

Statutory requirement: Notice of paid sick leave rights in:

• English
• Spanish
• Any language spoken by at least 10% of workforce

Official poster available:

According to the New Mexico Department of Workforce Solutions:

The official Healthy Workplaces Act poster is available for download on the department website.

Source: New Mexico Department of Workforce Solutions
Available at: https://www.dws.state.nm.us/NMPaidSickLeave
Verified: January 19, 2026

Payment requirements:

According to NMSA 1978, Section 50-17-2(A):

“‘earned sick leave’ means time that is compensated at the same hourly rate and with the same benefits, including health care benefits, as an employee normally earns during hours worked and is provided by an employer to that employee for the purposes described in the Healthy Workplaces Act, but in no case shall the hourly rate be less than the applicable legally required minimum wage rate.”

Payment standard:

• Same hourly rate as regular hours
• Same benefits as regular hours
• Never less than minimum wage

No payout upon termination required:

The Healthy Workplaces Act does not require employers to pay out unused sick leave upon employee separation.

Search conducted:

• New Mexico Legislature website: https://www.nmlegis.gov/
• Review of: NMSA 1978, Sections 50-17-1 through 50-17-16
• Search terms: “payout”, “separation”, “termination”
• Date: January 19, 2026
• Result: No requirement for payout of unused sick leave upon separation

Existing PTO Policies

Employers with existing paid leave policies:

According to NMSA 1978, Section 50-17-4:

“An employer with a paid time off policy that makes available an amount of earned sick leave sufficient to meet the accrual requirements of the Healthy Workplaces Act and that may be used for at minimum the same purposes and under the same terms and conditions as that act is deemed to be in compliance with that act.”

Source: Healthy Workplaces Act
Citation: NMSA 1978, Section 50-17-4
Available at: https://www.nmlegis.gov/Sessions/21%20Regular/bills/house/HB0020.HTML

Requirements for existing policies:

• Must provide at least 64 hours annually
• Must be available for same uses as Healthy Workplaces Act
• Must have same or better terms and conditions
• Must accrue at same or faster rate

If these requirements are met, no additional sick leave is required.

Retaliation Prohibited

Anti-retaliation provisions:

According to NMSA 1978, Section 50-17-7:

“An employer shall not count use of sick leave in a way that will lead to discipline, discharge, demotion, non-promotion, less favorable scheduling, reduction of hours or any other adverse action.”

Source: Healthy Workplaces Act
Citation: NMSA 1978, Section 50-17-7
Available at: https://www.nmlegis.gov/Sessions/21%20Regular/bills/house/HB0020.HTML

Prohibited employer actions:

• Discipline for using sick leave
• Discharge for using sick leave
• Demotion for using sick leave
• Counting sick leave use toward attendance points that lead to discipline
• Reducing hours in retaliation
• Any adverse employment action

Enforcement

Enforcement agency:

The New Mexico Department of Workforce Solutions, Labor Relations Division, enforces the Healthy Workplaces Act.

Source: New Mexico Department of Workforce Solutions
Division: Labor Relations Division
Available at: https://www.dws.state.nm.us/en-us/Labor-Relations
Verified: January 19, 2026

Enforcement mechanisms:

According to NMSA 1978, Section 50-17-9:

Employees may file complaints with the Labor Relations Division. The Secretary of Workforce Solutions has authority to:

• Investigate complaints
• Order remedies including back payment of wages
• Assess civil penalties against violating employers
• Seek injunctive relief

Private right of action:

Employees may also pursue civil actions for violations, with potential recovery of:

• Unpaid sick leave wages
• Liquidated damages
• Attorney fees and costs
• Equitable relief