Understanding New Mexico Employment and Labor Laws

Labor and employment laws in the US set the foundation for creating just and fair work environments. They determine the rights and obligations of employers, employees, and labor unions, encompassing aspects such as wages, working conditions, health and safety, and termination.

Given that these laws can differ by state, both employers and employees should familiarize themselves with the specific requirements in their local area. In this article, we will discuss the essential laws applicable in New Mexico.

Federal vs. state law differences

Federal and state regulations can often intersect and sometimes diverge. Federal laws provide a baseline across the US, setting minimum standards for wages, discrimination, and workplace safety.

However, states like New Mexico often enact laws that provide additional protections and benefits to workers. For instance, while the federal minimum wage remains at $7.25 per hour, New Mexico has set a higher standard of $12.00 per hour as of January 1, 2023, reflecting the state's commitment to a living wage.

Employment vs. labor law: what's the difference?

Employment law generally deals with the rights and obligations within the employer-employee relationship, covering a range of issues from contracts to workplace discrimination.

Labor law, on the other hand, focuses more on the relationship between employers and collective entities like unions, including collective bargaining and workers' rights to organize.

New Mexico has some unique laws that go beyond federal requirements. For example:

• The New Mexico Healthy Workplaces Act requires employers to provide paid sick leave to employees
• New Mexico's Human Rights Act prohibits discrimination based on sexual orientation and gender identity, in addition to federally protected characteristics
• The state has its own occupational health and safety program, NM OSHA, which operates under federal approval but can enact additional state-specific workplace safety standards

Understanding these distinctions is crucial for both employers and employees in New Mexico to ensure compliance with all applicable laws and to fully understand their rights and responsibilities in the workplace.

Wages and hours in New Mexico

New Mexico’s wage and hour laws combine state-specific requirements and federal requirements.

Minimum wage in New Mexico

The New Mexico Minimum Wage Act sets the statewide minimum wage at $12.00 per hour.

Albuquerque's minimum wage ordinance

The City of Albuquerque has its own Minimum Wage Ordinance, which initially set a lower rate than the state. According to the ordinance, the city's adjusted minimum wage increased from $10.70 to $11.10 per hour.

Prevailing minimum wage in Albuquerque

Despite the city's ordinance, the actual minimum wage in Albuquerque is $12.00 per hour. This is because the higher rate between the state law and the city ordinance takes precedence. Since the state's minimum wage ($12.00) is higher than the city's adjusted rate ($11.10), employers in Albuquerque must pay at least $12.00 per hour.

Special provisions

Healthcare and Childcare Benefits: Employers providing healthcare and/or childcare benefits worth at least $2,500 annually are still required to pay the $12.00 minimum wage.

Tipped Employees: The minimum wage for tipped employees in Albuquerque is set at $7.20 per hour, which is 60% of the regular minimum wage.

Overtime pay in New Mexico

New Mexico law mandates that covered, nonexempt employees receive overtime pay at a rate of not less than one and one-half times their regular rate of pay after 40 hours of work in a week. Exceptions apply under special circumstances for police officers, firefighters, and employees of hospitals and nursing homes.

Pay transparency in New Mexico

New Mexico does not have any specific state pay transparency laws requiring salary range disclosures or banning salary history questions, but federal protections for discussing pay still apply to most workers in the state.

Breaks and rest periods in New Mexico

New Mexico does not have statutes requiring employers to provide lunch breaks, coffee breaks, or rest periods. However, if breaks of less than 30 minutes are provided, employers cannot deduct this time from wages.

Leaves of absence in New Mexico

Pregnancy disability leave in New Mexico

The proposed Paid Family & Medical Leave Act (PFMLA) in New Mexico aims to provide up to 12 weeks of paid leave for eligible employees to care for a new child, a family member with a serious health concern, or their own medical condition. The program would be funded through employee and employer contributions, with employees contributing $5 and most employers contributing $4 per $1000 of wages.

Paid sick leave in New Mexico

The Healthy Workplaces Act of 2021 mandates that all private employers in New Mexico allow employees to accrue and use earned sick leave, effective from July 1, 2022. This leave can be used for various reasons including illness, injury, or certain legal and family issues.

Jury duty in New Mexico

In New Mexico, employers are not obligated by law to compensate employees for jury duty. However, it is against state law for an employer to terminate or discriminate against an employee for taking time off to fulfill jury duty, as long as the employee provides reasonable notice to the employer beforehand.

Workplace safety in New Mexico

The Occupational Health and Safety Bureau (NM OSHA) is part of the New Mexico Environment Department and is responsible for enforcing workplace safety standards in the state. New Mexico operates under an OSHA-approved State Plan, which means it has adopted federal OSHA standards and enforces them at the state level.

The New Mexico State Plan applies to private-sector workplaces and state/local government employers. Some exceptions include maritime employment, postal service operations, and workplaces on military bases or Indian reservations, which fall under federal OSHA jurisdiction.

Discrimination and harassment laws in New Mexico

The New Mexico Human Rights Act protects individuals from discrimination based on various categories including race, age, sex, and more, in employment and other areas. It requires employers to make reasonable accommodations and prohibits forced leave for pregnancy-related conditions unless chosen by the employee.

Unions in New Mexico

Union membership and dues may be mandatory in workplaces with a collective bargaining agreement in New Mexico. Local right-to-work laws are prohibited, and certain local jurisdictions require Project Labor Agreements for large projects.

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Keeping up to date with the latest state-specific labor and employment laws is a crucial but resource-intensive task for HR and payroll teams. With Deel PEO, you can offload HR and compliance risks and focus on growing your business. Deel’s services include:

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Disclaimer: This article is provided for general informational purposes and should not be treated as legal or tax advice. Consult a professional before proceeding.