🇺🇸 New Mexico Minimum Wage — 2026 UPDATE

New Mexico Minimum Wage 2026

⚠️Informational only — not legal or tax advice.

Last Updated: February 9, 2026
Last Reviewed: February 9, 2026
Applicable Period: 2026
Jurisdiction: State of New Mexico, United States
Update Schedule: Quarterly reviews in 2026; annual reviews thereafter

Minimum Wage in New Mexico 2026

Table of Contents

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Introduction

The minimum wage in New Mexico establishes the lowest hourly compensation that employers must legally provide to covered employees. For 2026, New Mexico maintains a minimum wage of $12.00 per hour, which has remained at this level since January 1, 2023. The state permits tip credits, and specific local jurisdictions have enacted higher minimum wage ordinances.

Minimum wage regulations in New Mexico operate under Section 50-4-22 NMSA 1978 alongside federal requirements established by the Fair Labor Standards Act (FLSA). When state or local minimum wage rates exceed the federal standard, employers must comply with the higher applicable rate. New Mexico allows tip credits, and two local jurisdictions have enacted higher minimum wage ordinances.

This page provides an authoritative overview of New Mexico minimum wage law for 2026, including current rates, tipped employee provisions, local wage ordinances, coverage and exemptions, enforcement procedures, and compliance requirements. All information is compiled from official government sources.

New Mexico Minimum Wage – 2026 Quick Reference
Category Rate Effective Date Official Source
State minimum wage $12.00/hour January 1, 2023 NMSA § 50-4-22
Tipped minimum wage $3.00/hour January 1, 2023 NMSA § 50-4-22
Tip credit allowed Yes (up to $9.00) — NMSA § 50-4-22
Next scheduled increase None currently scheduled N/A NM DWS
Rate adjustment mechanism Fixed (requires legislation) — NMSA § 50-4-22
Federal minimum wage $7.25/hour July 24, 2009 U.S. Department of Labor
Local minimum wages Yes (2 jurisdictions) Varies Local ordinances

Last verified: February 9, 2026 via New Mexico Department of Workforce Solutions

Overview of Minimum Wage Law in New Mexico

Legal Authority

New Mexico minimum wage requirements are established under Section 50-4-22 of the New Mexico Statutes Annotated (NMSA 1978), known as the Minimum Wage Act. The New Mexico Department of Workforce Solutions, through its Labor Relations Division, administers and enforces minimum wage regulations in New Mexico. The state minimum wage law was originally enacted in 1955 and has been amended multiple times, most recently establishing the current $12.00 rate in 2023.

Relationship to Federal Law

Under the Fair Labor Standards Act (FLSA), the federal minimum wage establishes a floor of $7.25 per hour for covered employers and employees. New Mexico law operates independently with federal minimum wage standards. When both state and federal minimum wage laws apply, employers must pay whichever rate is higher.

Because New Mexico’s minimum wage of $12.00 exceeds the federal minimum, most covered employers must comply with the state rate. Employers covered by the FLSA but exempt from state law must pay at least the federal minimum of $7.25 per hour.

Coverage Scope

New Mexico minimum wage law applies to all employers employing one or more employees at any one time, acting directly or indirectly in the interest of an employer in relation to an employee. The law excludes the United States and political subdivisions of the state from the definition of “employer,” except that state and local government employees are covered by the minimum wage requirements. Specific employee categories are exempt under state law, as detailed in the Coverage and Exemptions section below.

Higher Rate Principle

The principle of “higher prevailing rate” requires employers to pay the highest applicable minimum wage—whether federal, state, or local. In New Mexico, this means employers must identify and apply whichever minimum wage rate provides employees the highest hourly compensation. For areas with local minimum wage ordinances, employers must compare the federal rate of $7.25, the state rate of $12.00, and any applicable local rate.

Current Minimum Wage Rates in New Mexico 2026

Standard Hourly Minimum Wage

As of January 1, 2023, the standard minimum wage in New Mexico is $12.00 per hour for covered employees. This rate applies to all non-exempt employees working for employers covered by the Minimum Wage Act.

New Mexico’s minimum wage has remained at $12.00 since January 1, 2023, when it increased from the previous rate of $11.50. Unlike some states, New Mexico does not currently have an automatic annual adjustment mechanism based on inflation or the Consumer Price Index. Changes to the state minimum wage require new legislation passed by the New Mexico Legislature and signed by the Governor.

The state legislature has considered bills to implement automatic cost-of-living adjustments. For example, HB0246 introduced in the 2025 legislative session proposed annual CPI-based adjustments beginning January 1, 2027, but this legislation has not been enacted as of February 2026.

Scheduled Increases

No minimum wage increases are currently scheduled in New Mexico. The rate will remain at $12.00 per hour unless changed by future legislation. The New Mexico Legislature periodically considers bills to increase the minimum wage or implement automatic adjustment mechanisms, but any changes require passage of new legislation.

The New Mexico Department of Workforce Solutions publishes minimum wage information on its website and provides notifications to employers when rates change through legislative action.

Minimum Wage for Tipped Employees

Tipped Employee Cash Wage

New Mexico permits employers to pay tipped employees a reduced cash wage, provided that employee tips combined with the cash wage equal at least the full minimum wage.

Cash wage requirement: $3.00 per hour
Maximum tip credit: $9.00 per hour
Total minimum compensation: $12.00 per hour (cash wage + tips)

Who Qualifies as a Tipped Employee

Under New Mexico law, a “tipped employee” is defined as an employee who customarily and regularly receives more than $30 per month in tips. Qualifying occupations typically include:

  • Restaurant servers and bartenders
  • Hotel service workers
  • Casino service staff
  • Parking attendants and valets
  • Delivery drivers who receive tips
  • Other service positions where customers customarily provide tips

Employer Obligations for Tipped Workers

Employers who claim a tip credit must:

  1. Ensure total compensation (cash wage plus tips) equals or exceeds the full minimum wage of $12.00 for all hours worked
  2. Pay the difference if an employee’s tips fail to bring total compensation to the minimum wage during any workweek
  3. Maintain accurate records of employee tips and hours worked
  4. Retain all tips for employees – employers cannot keep any portion of employee tips
  5. Comply with tip pooling restrictions as outlined below

According to NMSA § 50-4-22, if tips combined with the employer’s cash wage do not equal at least the minimum wage rate, the employer must pay the employee the difference to ensure total compensation meets the $12.00 minimum.

Tip Pooling and Sharing

New Mexico law permits tip pooling among employees under specific conditions. According to state statute, all tips received by employees must be retained by the employee, except that the law does not prohibit the pooling of tips among wait staff.

Permitted tip pooling:

  • Wait staff may participate in mandatory or voluntary tip pools
  • Tips must be distributed among employees who customarily and regularly receive tips
  • Tip pooling arrangements must not include employees who do not customarily receive tips

Prohibited practices:

  • Employers cannot retain any portion of employee tips
  • Management and supervisors cannot participate in tip pools
  • Tips cannot be shared with employees who do not provide direct customer service

Recordkeeping requirements: Employers must maintain accurate records of:

  • Tips reported by each employee
  • Tip credit amounts claimed
  • Total compensation paid (cash wage plus tips)
  • Distribution of pooled tips, if applicable

All tip records must be available for inspection by the New Mexico Department of Workforce Solutions Labor Relations Division.

Local Minimum Wage Ordinances in New Mexico

In addition to the state minimum wage, two jurisdictions in New Mexico have enacted their own minimum wage ordinances that exceed the state rate. Employers must comply with the highest applicable rate—federal, state, or local—for the jurisdiction where work is performed.

New Mexico City and County Minimum Wages (2026)
City / County Rate Effective Date Employer Size Requirements Official Source
Las Cruces $13.01 January 1, 2026 All employers Las Cruces Municipal Code
Santa Fe County $15.00 March 1, 2025 County contractors and subcontractors Santa Fe County Ordinance 2014-5

Note: The City of Albuquerque’s minimum wage ordinance establishes a rate of $11.85 for 2026, but the state minimum wage of $12.00 supersedes the city rate as the prevailing wage.

Las Cruces Minimum Wage

The City of Las Cruces enacted Ordinance 2726 in 2014, establishing a municipal minimum wage with annual increases based on the Consumer Price Index. For 2026, the Las Cruces minimum wage is $13.01 per hour, which exceeds both the state rate of $12.00 and the federal rate of $7.25.

Las Cruces tipped minimum wage: $5.20 per hour as of January 1, 2026

The Las Cruces ordinance applies to all employers operating within city limits, regardless of size. The city calculates the annual adjustment based on the CPI index and adopts whichever rate is higher between the state minimum wage and the city’s CPI-adjusted rate.

Santa Fe County Living Wage

Santa Fe County established a living wage ordinance through Ordinance No. 2014-5, which applies to county contractors and subcontractors providing services to Santa Fe County. The living wage for 2025 is $15.00 per hour, effective March 1, 2025, representing a 2.76% increase based on the Consumer Price Index for the Western Region for Urban Wage Earners and Clerical Workers.

Santa Fe County tipped living wage: $4.50 per hour as of March 1, 2025 (30% of the living wage)

The Santa Fe County living wage applies specifically to employees working on county service contracts. Private employers not contracting with the county are subject to the state minimum wage of $12.00.

Albuquerque Minimum Wage

The City of Albuquerque enacted a minimum wage ordinance that establishes an annually adjusted rate. For 2026, the city’s calculated minimum wage is $11.85 per hour. However, according to City of Albuquerque official guidance, the state minimum wage of $12.00 supersedes the city rate, making $12.00 the prevailing wage for employers in Albuquerque.

Tipped minimum wage in Albuquerque: $7.20 per hour as of January 1, 2026, per Albuquerque ordinance, though state tipped minimum of $3.00 may apply under certain conditions

The Albuquerque ordinance also provides a benefits credit option, allowing employers to pay $10.85 per hour if they provide healthcare and/or childcare benefits valued at $2,500 annually or more. However, the state minimum wage of $12.00 still supersedes this rate.

How Local Minimum Wages Apply

Location of Work Controls: The applicable minimum wage is determined by where the employee physically performs work, not where the employer’s headquarters or main office is located.

Employee Split Between Jurisdictions: When an employee works in multiple jurisdictions during a single workweek, employers must pay the minimum wage rate applicable for each location based on hours worked there. For example, an employee who works part of the week in Las Cruces ($13.01) and part of the week in a location subject only to state law ($12.00) must be paid the appropriate rate for hours worked in each jurisdiction.

Remote Work Considerations: For employees working remotely, the minimum wage of the jurisdiction where the employee physically performs work generally applies, even if the employer is located elsewhere.

Enforcement: Local minimum wage ordinances are enforced by city or county labor standards offices, with support from the New Mexico Department of Workforce Solutions. Violations may result in back pay, penalties, and other remedies under local law.

Scheduled Local Minimum Wage Increases

Both Las Cruces and Santa Fe County adjust their minimum wages annually based on inflation indices:

  • Las Cruces: Annual CPI-based adjustment each January 1
  • Santa Fe County: Annual adjustment each March 1 based on the CPI for Western Region Urban Wage Earners and Clerical Workers

The City of Las Cruces and Santa Fe County announce new rates several months in advance to allow employers adequate time to prepare for changes.

Who Is Covered and Who Is Exempt

Employees Covered by New Mexico Minimum Wage

New Mexico minimum wage law covers most private sector employees. Unless specifically exempted, covered employees include:

  • Private sector workers: Full-time and part-time employees of private businesses
  • Salaried non-exempt employees: Employees paid on a salary basis who do not qualify for overtime exemption under FLSA
  • Hourly employees: Workers compensated on an hourly basis
  • Temporary and seasonal workers: Covered at the same rate as permanent employees
  • Minor employees: Workers under age 18 are covered at the standard minimum wage rate
  • State and local government employees: Specifically included in minimum wage coverage under New Mexico law

Exemptions from Minimum Wage Requirements

The following categories of employees may be exempt from New Mexico minimum wage requirements under NMSA § 50-4-21:

Federal Employees
Individuals employed by the United States government are exempt from state minimum wage requirements. Federal employees are subject to federal wage and hour laws.

Educational, Charitable, Religious, or Nonprofit Organizations
Individuals engaged in activities of educational, charitable, religious, or nonprofit organizations where the employer-employee relationship does not exist or where services are rendered on a voluntary basis are exempt from minimum wage requirements.

Agricultural Workers
Agricultural employees may be subject to different wage provisions. Employers furnishing food, utilities, supplies, or housing to employees engaged in agriculture may deduct the reasonable value of such furnished items from wages due to the employee.

Executive, Administrative, and Professional Employees
Employees performing bona fide executive, administrative, or professional duties may be exempt if they meet federal salary and duties tests under the Fair Labor Standards Act. New Mexico generally follows federal exemption standards for these categories.

Outside Sales Employees
Employees whose primary duty is making sales away from the employer’s place of business and who are customarily and regularly engaged away from the employer’s business location may be exempt from minimum wage requirements.

Seasonal Employees
Seasonal employees of an employer obtaining and holding a valid certificate issued annually by the director of the Labor Relations Division of the New Mexico Department of Workforce Solutions may be exempt. The certificate must state the job designations and total number of employees to be exempted.

Independent Contractors
Properly classified independent contractors are not employees and therefore not covered by minimum wage requirements. However, New Mexico applies tests to determine independent contractor status, and misclassification may result in penalties and back wages. The determination focuses on the degree of control the employer exercises over the worker and the worker’s independence in performing services.

Employer Obligations and Enforcement

Employer Compliance Requirements

Employers subject to New Mexico minimum wage law must:

  1. Pay the applicable minimum wage for all hours worked, whether federal, state, or local rate is highest
  2. Maintain accurate payroll records documenting hours worked and wages paid for at least three years
  3. Display required posters informing employees of minimum wage rates and labor rights
  4. Issue compliant wage statements showing gross wages, deductions, and net pay
  5. Provide records upon request to the Labor Relations Division during investigations
  6. Comply with overtime requirements – pay 1.5 times the regular rate for hours over 40 in a workweek

Recordkeeping Requirements: Employers must maintain payroll records for three years, including:

  • Employee names and addresses
  • Hours worked each workday and workweek
  • Wage rates and total wages paid each pay period
  • Deductions from wages
  • Total daily or weekly straight-time earnings
  • Total overtime earnings for the workweek

Enforcement of Minimum Wage Law

The New Mexico Department of Workforce Solutions, through its Labor Relations Division, enforces minimum wage requirements in New Mexico. The division:

  • Investigates wage complaints filed by employees
  • Conducts routine compliance inspections
  • Issues citations and orders for wage violations
  • Collects unpaid wages and penalties on behalf of employees
  • Refers cases for criminal prosecution when appropriate
  • Provides education and outreach to employers and employees on wage law compliance

Filing a Complaint: Employees who believe they have not been paid proper minimum wage may file a complaint with the Labor Relations Division through:

New Mexico law prohibits retaliation against employees who file wage complaints or cooperate with investigations.

Penalties for Minimum Wage Violations

Employers who violate New Mexico minimum wage law may be subject to:

Back Wages: Employers must pay employees the difference between wages paid and the required minimum wage for all hours worked, typically going back three years from the date of complaint under the statute of limitations.

Civil Penalties: The Labor Relations Division may assess civil penalties against employers who willfully or repeatedly violate minimum wage requirements. Penalties are designed to deter violations and ensure compliance.

Interest: Unpaid wages may accrue interest from the date wages were due until payment is made.

Criminal Penalties: Willful violations of minimum wage law may result in criminal prosecution. Employers who intentionally fail to pay required minimum wages may face misdemeanor charges.

Court Costs and Attorney Fees: Employees who prevail in minimum wage actions through private civil litigation may recover reasonable attorney fees and costs of litigation in addition to unpaid wages.

The Labor Relations Division has authority to pursue administrative enforcement actions and may refer cases to the district attorney’s office for criminal prosecution in cases of egregious or repeated violations.

New Mexico Minimum Wage vs Federal Law

The Federal Minimum Wage Floor

The Fair Labor Standards Act (FLSA) establishes a federal minimum wage of $7.25 per hour, which has remained unchanged since July 24, 2009. This federal rate sets a floor for minimum wage requirements nationwide and applies to employers engaged in interstate commerce or with annual gross sales exceeding $500,000.

When State Law Applies

Because New Mexico’s minimum wage of $12.00 exceeds the federal minimum, most employees working in New Mexico are entitled to the higher state rate. The federal minimum serves as a fallback only for the limited category of employers covered by federal but not state law.

For example, federal employees working in New Mexico are exempt from state minimum wage requirements but must be paid according to federal wage schedules. Similarly, certain categories of workers exempt from state coverage but covered by FLSA must receive at least the federal minimum of $7.25.

Higher Applicable Rate Rule

The fundamental principle governing minimum wage compliance is that employers must pay whichever rate—federal, state, or local—provides employees the highest hourly wage. This rule ensures workers receive maximum protection under applicable law.

Practical Application:

  1. Identify all minimum wage rates that may apply (federal, state, local)
  2. Determine which rates cover the specific employer and employee
  3. Pay the highest applicable rate

In New Mexico, this often means comparing the federal minimum of $7.25, the state minimum of $12.00, and any applicable local minimum wage (such as Las Cruces’ $13.01 or Santa Fe County’s $15.00 for applicable employees) to determine which rate governs.

Minimum Wage Posting Requirements

New Mexico law requires employers to display official notices informing employees of their rights under state labor laws, including minimum wage requirements. The posting must be in a conspicuous location accessible to all employees.

Where to obtain posters:

Posting locations: The notice must be posted in each workplace location where employees can readily see it, typically near time clocks, in break rooms, at employee entrances, or other prominent locations where employees congregate.

Required content: The minimum wage poster must include:

  • Current state minimum wage rate ($12.00 per hour)
  • Tipped employee minimum wage ($3.00 per hour)
  • Employee rights under the Minimum Wage Act
  • Contact information for the Labor Relations Division
  • Information on how to file a wage complaint

Compliance: Failure to display required posters may result in citations and penalties from the Labor Relations Division. Employers must update posters when minimum wage rates change through legislative action or when new labor law requirements take effect.

Employers with locations in jurisdictions with local minimum wage ordinances (Las Cruces, Santa Fe County, Albuquerque) should also display any required local wage notices in addition to state and federal posters.

Frequently Asked Questions: Minimum Wage in New Mexico 2026

What is the minimum wage in New Mexico in 2026?

The minimum wage in New Mexico is $12.00 per hour as of January 1, 2023. This rate applies statewide to all covered employers. Higher rates of $13.01 apply in Las Cruces and $15.00 for Santa Fe County contractors.

When is the next minimum wage increase in New Mexico?

No minimum wage increases are currently scheduled in New Mexico. The rate will remain $12.00 per hour unless changed by future legislation passed by the New Mexico Legislature and signed by the Governor.

Does New Mexico allow tip credit?

Yes, New Mexico permits employers to pay tipped employees a cash wage of $3.00 per hour, with up to $9.00 in tip credit, provided total compensation reaches $12.00 per hour. Employees who customarily receive more than $30 per month in tips qualify as tipped employees.

Are there different minimum wages in different cities in New Mexico?

Yes, two jurisdictions in New Mexico have minimum wages higher than the state rate. Las Cruces requires $13.01 per hour, and Santa Fe County requires $15.00 per hour for county contractors and subcontractors. Employers must pay the highest applicable rate for the location where work is performed.

Who is exempt from minimum wage in New Mexico?

Common exemptions from New Mexico minimum wage include federal employees, individuals engaged in activities of educational, charitable, religious, or nonprofit organizations on a voluntary basis, and seasonal employees with valid certificates from the Labor Relations Division. Executive, administrative, and professional employees meeting federal exemption criteria may also be exempt. Most hourly workers, including part-time employees, are covered.

What happens if an employer pays below minimum wage in New Mexico?

Employers who pay below minimum wage face back wage liability for up to three years, civil penalties, and potential criminal prosecution. Employees can file complaints with the Labor Relations Division of the New Mexico Department of Workforce Solutions to recover unpaid wages. New Mexico law prohibits retaliation against workers who report violations.

Do small businesses have to pay minimum wage in New Mexico?

Yes, all employers in New Mexico must pay minimum wage regardless of size. The Minimum Wage Act applies to any employer employing one or more employees at any time. Even businesses with a single employee must comply with the $12.00 hourly rate.

Is New Mexico’s minimum wage higher than the federal minimum?

Yes, New Mexico’s minimum wage of $12.00 is $4.75 higher than the federal minimum wage of $7.25. Employers in New Mexico must pay the higher state rate for covered employees.

How often does New Mexico increase its minimum wage?

New Mexico does not have an automatic annual adjustment mechanism. Changes to the minimum wage require new legislation passed by the New Mexico Legislature and signed by the Governor. The current rate of $12.00 has been in effect since January 1, 2023.

Can employers pay less than minimum wage during training?

No, New Mexico does not authorize a training wage. Employers must pay at least $12.00 per hour from the first hour of employment for all non-exempt employees. However, employers may pay tipped employees $3.00 per hour cash wage if tips bring total compensation to at least $12.00.

How to file a minimum wage complaint in New Mexico

Employees who believe they have not received proper minimum wage compensation may file a wage complaint with the Labor Relations Division of the New Mexico Department of Workforce Solutions. Filing methods include:

The Labor Relations Division will investigate the complaint and may recover unpaid wages on behalf of the employee. New Mexico law prohibits employer retaliation against workers who file wage complaints or participate in investigations.

Do remote workers in New Mexico get the New Mexico minimum wage?

Generally, the minimum wage of the jurisdiction where the employee physically performs work applies. Remote workers located in New Mexico are typically entitled to New Mexico’s minimum wage of $12.00, even if their employer is based in another state. For workers in Las Cruces, the local rate of $13.01 applies based on the physical work location.

Information Verification Log

All information on this page has been compiled from official government sources and verified for accuracy as of the dates below.

Sources and Verification – New Mexico Minimum Wage (2026)
Source Last Verified Full URL
New Mexico Statutes Annotated § 50-4-22 February 9, 2026 nmlegis.gov
New Mexico Department of Workforce Solutions February 9, 2026 dws.state.nm.us
Las Cruces Municipal Code – Minimum Wage February 9, 2026 lascruces.gov
Santa Fe County Living Wage Ordinance February 9, 2026 santafecountynm.gov
City of Albuquerque – Minimum Wage February 9, 2026 cabq.gov
U.S. Department of Labor – State Minimum Wages February 9, 2026 dol.gov
U.S. Department of Labor – FLSA February 9, 2026 dol.gov

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Legal Disclaimer: Nature of This Compilation This document is a compilation of publicly available information from official government sources. It is NOT: Legal advice An interpretation of laws or regulations A substitute for consultation with a licensed attorney A comprehensive treatment of all applicable laws Guaranteed to be complete or current