New Mexico Minimum Wage 2025: Detailed State and City Breakdown

Key Takeaways

• New Mexico’s 2025 minimum wage is $12.00 per hour for most workers statewide.
• Cities like Santa Fe and Las Cruces have higher local minimum wages in 2025.
• Tipped employees have a $3.00 hourly cash wage but must earn $12.00 including tips.

Understanding the Minimum Wage in New Mexico for 2025: A Detailed Guide for Immigrants, Workers, and Employers

The minimum wage is the lowest hourly pay that employers can legally give to workers. In New Mexico, the minimum wage is a key issue for many people, especially immigrants, new arrivals, and anyone looking for work. Knowing the rules about the minimum wage in New Mexico for 2025 helps workers protect their rights and helps employers follow the law. This guide explains what the minimum wage is in New Mexico for 2025, who it applies to, how it works in different cities, and what it means for immigrants and other workers.

What Is the Minimum Wage in New Mexico for 2025?

As of 2025, the minimum wage in New Mexico is $12.00 per hour for most employees. This rate has been in place since 2023 and is set by state law. It applies to almost all workers in the state, no matter where they come from or what type of job they do, unless a special rule applies to their situation.

Key facts about the New Mexico minimum wage in 2025:
– Statewide minimum wage: $12.00 per hour
– Tipped employees: $3.00 per hour (cash wage), but total pay (wages plus tips) must reach at least $12.00 per hour
– Youth employees (under 18): $10.50 per hour (training wage) for the first 90 days of work

These rules are set by the New Mexico Department of Workforce Solutions, which is the state agency responsible for making sure employers follow wage laws. You can find more details and updates on their official website.

Who Does The minimum wage law Apply To?

The minimum wage law in New Mexico covers most workers, including:
– Full-time and part-time employees
– Immigrants with legal work authorization
– Temporary and seasonal workers
– Workers in restaurants, hotels, and other service jobs

However, there are some exceptions and special rules:
– Tipped employees (like waiters and bartenders) can be paid a lower cash wage, but their tips must bring their total pay up to at least the minimum wage.
– Youth employees under 18 can be paid a lower training wage for their first 90 days on the job.
– Some workers, such as certain farm workers or independent contractors, may not be covered by the minimum wage law.

If you are unsure whether you are covered, it is a good idea to ask your employer or check with the New Mexico Department of Workforce Solutions.

How Does the Minimum Wage Work for Tipped Employees?

Many immigrants and new workers find jobs in restaurants, hotels, or other places where tips are common. In New Mexico, the rules for tipped employees are different from the standard minimum wage.

Tipped employees in New Mexico (2025):
– Cash wage: $3.00 per hour (statewide)
– Total pay: Must be at least $12.00 per hour (wages plus tips)
– If tips are not enough: The employer must pay the difference so the worker earns at least $12.00 per hour

For example, if a waiter earns $3.00 per hour in wages and $7.00 per hour in tips, their total is $10.00 per hour. The employer must then pay an extra $2.00 per hour to reach the $12.00 minimum wage.

Some cities have higher tipped minimum wages, which we will discuss in the next section.

Local Minimum Wages: How Cities in New Mexico Set Higher Rates

While the state minimum wage is $12.00 per hour, some cities in New Mexico have set higher minimum wages to help workers deal with the higher cost of living. If a city has a higher minimum wage than the state, employers must pay the higher amount.

Key cities with higher minimum wages in 2025:

Las Cruces
– Minimum wage: $12.65 per hour (as of January 1, 2025)
– Tipped wage: $5.06 per hour (cash wage)
– The city raises its minimum wage each year based on the Consumer Price Index (CPI), which measures changes in the cost of living.

Albuquerque
– Minimum wage: $11.50 per hour (city rate), but the state rate of $12.00 per hour is higher, so employers must pay $12.00 per hour.
– Tipped wage: $7.20 per hour (higher than the state tipped wage)
– Like Las Cruces, Albuquerque uses the CPI to adjust its minimum wage each year.

Santa Fe
– Minimum wage: $15.00 per hour (starting March 1, 2025)
– Santa Fe has the highest minimum wage in the state, reflecting the city’s higher cost of living and local government efforts to support workers.

If you work in one of these cities, you are entitled to the higher local minimum wage. Employers must always pay the higher of the state or local minimum wage.

Summary Table: Minimum Wage by Location (2025)

Why Do Minimum Wages Differ Between Cities?

Cities like Las Cruces and Santa Fe set higher minimum wages because the cost of living is higher in those areas. This means things like rent, food, and transportation cost more, so workers need higher pay to meet their basic needs. Local governments use tools like the Consumer Price Index to decide how much to raise the minimum wage each year.

For immigrants and newcomers, this means that where you live and work in New Mexico can make a big difference in how much you earn. If you are thinking about moving to a new city, it is important to check the local minimum wage.

Special Rules for Youth Employees

Young workers under 18 years old can be paid a lower wage when they first start a job. In New Mexico, the youth training wage is $10.50 per hour for the first 90 days of work. After 90 days, the worker must be paid the full minimum wage of $12.00 per hour (or the higher local rate, if it applies).

This rule is meant to help young people get their first job, but it is important for youth workers to know their rights. After 90 days, they should check their pay to make sure they are getting the correct wage.

Overtime Pay: What Workers Need to Know

In addition to the minimum wage, New Mexico law requires that most workers be paid overtime if they work more than 40 hours in a week. Overtime pay is 1.5 times the regular hourly rate. For example, if you earn $12.00 per hour, your overtime rate is $18.00 per hour.

Employers must keep accurate records of hours worked and pay overtime when required. This rule applies to all workers covered by the minimum wage law, including immigrants with legal work status.

What Happens If Employers Do Not Follow the Law?

If an employer does not pay the correct minimum wage or overtime, they can face serious penalties. Workers have the right to file a complaint with the New Mexico Department of Workforce Solutions. The agency can investigate, order back pay, and fine employers who break the law.

Common violations include:
– Paying less than the minimum wage
– Not paying overtime
– Not making up the difference for tipped employees
– Paying youth employees the training wage for more than 90 days

Workers should keep their own records of hours worked and pay received. If you think your employer is not following the law, you can get help from the Department of Workforce Solutions or a local worker advocacy group.

How Does the Minimum Wage Affect Immigrants and Newcomers?

For many immigrants, the minimum wage is a starting point for building a new life in the United States 🇺🇸. It is important to know that:
– The minimum wage law applies to all workers with legal work authorization, regardless of immigration status.
– Employers cannot pay immigrants less than the minimum wage because of their background or language skills.
– Workers have the right to report wage violations without fear of losing their job or being deported, as long as they have legal work status.

Many immigrants work in jobs where tips are common, such as restaurants or hotels. Knowing the rules for tipped employees helps protect your rights and ensures you get paid fairly.

Real-World Example: Maria’s Story

Maria moved to Las Cruces from Mexico 🇲🇽 and started working as a waitress in 2025. Her employer paid her $5.06 per hour in wages, and she earned about $7.00 per hour in tips. Together, her total pay was $12.06 per hour, which is just above the city’s minimum wage of $12.65 per hour. However, her employer noticed the shortfall and paid her an extra $0.59 per hour to make sure she received the full minimum wage. Maria kept track of her hours and tips, which helped her make sure she was paid correctly.

This example shows why it is important for workers to know their rights and for employers to follow the law.

How Do Employers Stay Compliant?

Employers in New Mexico must:
– Pay at least the minimum wage set by the state or local law, whichever is higher
– Pay overtime for hours worked over 40 per week
– Keep accurate records of hours worked and wages paid
– Post official minimum wage notices in the workplace
– Make up the difference if tipped employees do not earn enough in tips

Employers who do not follow these rules can face fines, lawsuits, and damage to their reputation. Staying up to date with changes in the law is important, especially since some cities adjust their minimum wage every year.

Annual Adjustments and the Future of the Minimum Wage

The minimum wage in New Mexico has gone up several times in recent years. In 2018, it was $7.50 per hour. By 2023, it reached $12.00 per hour, where it remains in 2025. Some cities, like Las Cruces and Santa Fe, continue to raise their minimum wage each year based on the cost of living.

Looking ahead:
– There is no scheduled increase in the state minimum wage for 2025.
– Local governments may continue to raise their minimum wages.
– Employers should watch for new laws or changes based on inflation or political decisions.

As reported by VisaVerge.com, keeping track of local and state wage laws is especially important for businesses that operate in more than one city or county.

Key Stakeholders: Who Sets and Enforces the Minimum Wage?

Several groups play a role in setting and enforcing the minimum wage in New Mexico:
– New Mexico Department of Workforce Solutions: Enforces state wage laws and investigates complaints.
– City governments: Set higher local minimum wages and adjust them based on the cost of living.
– Business groups: Sometimes raise concerns about higher wages increasing costs for small businesses.
– Labor advocates: Support higher minimum wages to help workers afford basic needs.

Each group has a different view, but the law is clear: workers must be paid at least the minimum wage set by state or local law.

Practical Tips for Workers and Employers

For workers:
– Know your rights and the minimum wage in your city.
– Keep records of your hours and pay.
– Speak up if you are not paid correctly.
– Use official resources like the New Mexico Department of Workforce Solutions for help.

For employers:
– Check the minimum wage in every city where you have employees.
– Update payroll systems to reflect new rates each year.
– Train managers and payroll staff on wage laws.
– Post required wage notices in the workplace.

Conclusion: Why the Minimum Wage Matters

The minimum wage in New Mexico for 2025 is a key protection for workers, including many immigrants and newcomers. It helps ensure that everyone who works gets paid fairly, no matter where they come from. By understanding the rules, both workers and employers can avoid problems and build a better future.

If you have questions or need help, visit the New Mexico Department of Workforce Solutions for the latest information and resources. Staying informed about the minimum wage helps everyone in New Mexico—workers, families, and businesses—move forward together.

Learn Today

Minimum Wage → The lowest hourly amount employers must legally pay employees according to state or local laws.
Tipped Employees → Workers who earn tips plus a lower cash wage; total pay must reach minimum wage.
Training Wage → A reduced wage rate for youth workers under 18 during their first 90 days of employment.
Consumer Price Index (CPI) → A measure tracking changes in cost of living, used to adjust wages annually.
Overtime Pay → Higher pay at 1.5 times regular wage for hours worked beyond 40 in one week.

This Article in a Nutshell

In 2025, New Mexico sets its statewide minimum wage at $12.00, with cities like Santa Fe raising rates higher. Tipped workers must earn $12 total per hour. Immigrants and youth have special wage rules. Knowing these laws protects workers and guides employers to comply with local and state standards.
— By VisaVerge.com