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As of January 1, 2025, New Mexico’s minimum wage increased to $12.00 per hour from $11.50 in the previous year. So, the tipped employees now earn a minimum of $3.00 per hour.
On the federal level, the minimum wage remains at $7.25 per hour, a rate established on July 24, 2009. The tipped wage has been set at $2.13 per hour since the same date.
Some cities of New Mexico has a higher minimum wage rates than the State’s average rates. The training wage of workers under 18 stands at $10.50 per hour during the first 90 days.
New Mexico follows the FLSA mandating overtime pay at 1.5 times the regular rates for working beyond 40 hours per week.
Minimum Wages in New Mexico Cities
The table below details minimum wage rates across all the cities of New Mexico Cities
| City | Non-Tipped Employees | Tipped Employees |
|---|---|---|
| Albuquerque | $12.00/hour | $7.20/hour |
| Santa Fe | $12.95/hour | $3.69/hour |
| Las Cruces | $12.65/hour | $5.06/hour |
| Rio Rancho | $12.00/hour | $3.00/hour |
| Roswell | $12.00/hour | $3.00/hour |
| Farmington | $12.00/hour | $3.00/hour |
| Clovis | $12.00/hour | $3.00/hour |
| Hobbs | $12.00/hour | $3.00/hour |
| Alamogordo | $12.00/hour | $3.00/hour |
| Carlsbad | $12.00/hour | $3.00/hour |
| Gallup | $12.00/hour | $3.00/hour |
| Deming | $12.00/hour | $3.00/hour |
| Los Lunas | $12.00/hour | $3.00/hour |
| Sunland Park | $12.00/hour | $3.00/hour |
| Portales | $12.00/hour | $3.00/hour |
| Artesia | $12.00/hour | $3.00/hour |
| Silver City | $12.00/hour | $3.00/hour |
| Española | $12.00/hour | $3.00/hour |
| Belen | $12.00/hour | $3.00/hour |
| Bernalillo | $12.00/hour | $3.00/hour |
| Ruidoso | $12.00/hour | $3.00/hour |
| Socorro | $12.00/hour | $3.00/hour |
| Taos | $12.00/hour | $3.00/hour |
| Lovington | $12.00/hour | $3.00/hour |
| Anthony | $12.00/hour | $3.00/hour |
| Tucumcari | $12.00/hour | $3.00/hour |
| Lordsburg | $12.00/hour | $3.00/hour |
| Bloomfield | $12.00/hour | $3.00/hour |
| Los Alamos | $12.00/hour | $3.00/hour |
| Grants | $12.00/hour | $3.00/hour |
Threshold For Employees Exempt
From January 1, 2025, New Mexico has raised the salary thresholds for exempt employees, aligning with updated federal guidelines. For Administrative, Executive, and Professional (EAP) employees, the new threshold is $684 per week, or $35,568 annually.
- Exempt employees are those who are exempt from overtime regulations, paid a salary, and perform administrative, professional, executive, computer, or outside sales work.
- Non-exempt employees are those paid hourly, perform more manual or technical duties, and are entitled to overtime pay for any hours worked beyond 40 in a work week.
To qualify for this exemption, employees must fulfill specific job duties, such as managing the business, performing non-manual management-related work, or having advanced knowledge in a specialized field. Highly Technical Computer Employees must earn $33.17 per hour or meet the EAP salary requirement.
Highly Compensated Employees must earn $123,750 annually, with a corresponding weekly salary that meets the EAP standard. Additionally, pay adjustments have been made for covered drivers, driver’s helpers, and seasonal or outdoor education staff, though the specifics may vary by role.
Historical Data of New Mexico Minimum Wages
The historical data on minimum wages in New Mexico shows a steady progression over the decades. This is majorly due to economic changes and policy adjustments.
The minimum wage rose from $1.40 in 1968 to $2.00 in 1976 and $3.35 by 1988. In the 2000s, it rose to $5.15 in 2004 and $7.50 in 2009. More recent adjustments have brought it to $12.00 by 2023. These changes highlight ongoing efforts to ensure fair compensation for workers in the state.
The table below represents the changes in New Mexico minimum wages over the years .
| Year Range | Minimum Wage (USD) |
|---|---|
| 1968 – 1975 | 1.40 |
| 1976 – 1978 | 2.00 |
| 1979 | 2.30 |
| 1980 | 2.65 |
| 1981 – 1987 | 2.90 |
| 1988 – 1993 | 3.35 |
| 1994 – 1996 | 4.25 |
| 1997 – 2003 | 4.25 |
| 2004 – 2007 | 5.15 |
| 2008 | 6.50 |
| 2009 – 2019 | 7.50 |
| 2020 | 9.00 |
| 2021 | 10.50 |
| 2022 | 11.50 |
| 2023 – 2024 | 12.00 |
Source: https://www.dol.gov/agencies/whd/state/minimum-wage/history
Exemptions in Minimum Wages of New Mexico
There are a few employees exempted from the minimum wage requirements in New Mexico, which includes of the following:
- Tipped Employees who receive a base wage of $3.00 per hour, and their combined earnings from tips and wages must meet or exceed the standard minimum wage of $12.00 per hour.
- Apprentices and learners may be paid less than the minimum wage under specific conditions during a training period.
- Workers with disabilities may be paid a subminimum wage if the employer has obtained a certificate from the U.S. Department of Labor.
- Salespersons compensated by flat rate schedules, or on a commission basis are exempt from minimum wage requirements.
- Seasonal employees and certain agricultural workers may also be exempt, if they work for employers who did not use more than 500 man-days of agricultural labor in a calendar year.
- In the case of executive, administrative, and professional employees, they are exempt from both minimum wage and overtime requirements if they meet certain criteria in their job.
