Flag of New Mexico

New Mexico Labor Laws
An employer guide for 2026

New Mexico’s minimum wage is $12.00 an hour, with a $3.00 cash wage for tipped employees, and Santa Fe sets a higher local rate. Every private employer must provide paid sick leave under the Healthy Workplaces Act. This guide covers overtime, breaks, paydays, final pay and child labor rules with links to official sources.
Team reviewing workforce guides on a laptop

New Mexico labor laws at a glance

New Mexico pairs a state minimum wage well above the federal floor with one of the broadest paid sick leave laws in the region: the Healthy Workplaces Act covers every private employer with even one employee. Local living wage ordinances in Santa Fe add another layer. The Labor Relations Division of the New Mexico Department of Workforce Solutions (DWS) enforces the state rules. Here is a quick summary for 2026.

TopicRule
Minimum wage$12.00/hour statewide; DOL state table
Tipped employees$3.00/hour cash wage if tips exceed $30/month; DOL tipped table
Secondary school studentsAt least $8.50/hour under the Minimum Wage Act
Local minimumsCity and County of Santa Fe: $15.40/hour (from March 1, 2026)
Overtime1.5x after 40 hours in a 7-day week; no daily overtime
Meal and rest breaksNo general state requirement for adults
Paid sick leave1 hour per 30 worked; use may be capped at 64 hours/12 months; Healthy Workplaces Act
PaydaysSemimonthly for most employees; monthly allowed for exempt staff; DOL table
Final payDischarged: within 5 days (10 for task, piece or commission pay); quit: next payday

New Mexico minimum wage

The statewide minimum wage is $12.00 per hour. That rate was set by the 2019 amendments to the Minimum Wage Act (Senate Bill 437, signed as Chapter 114), which raised the wage in steps to $12.00 on January 1, 2023, and it is the rate the U.S. Department of Labor state table lists for New Mexico as of July 2026. No state increase for January 1, 2027 had been published on the official sources we reviewed.

Tipped employees

For employees who customarily and regularly receive more than $30 a month in tips, the employer must pay a cash wage of at least $3.00 per hour. The DOL tipped wage table shows a maximum tip credit of $9.00. If tips plus the cash wage fall short of $12.00 for the hours worked, the employer pays the difference.

Secondary school students

The Minimum Wage Act lets employers pay secondary school students a minimum of $8.50 per hour, and requires the employer to follow the Child Labor Act when doing so.

Local minimum and living wages

Several New Mexico localities set their own rates. Pay the higher local rate when the work is covered by a local ordinance:

  • City of Santa Fe: $15.40 per hour as of March 1, 2026. Employers may pay a $3.00 base wage to employees who customarily earn at least $100 a month in tips or commissions, as long as base wage plus tips reaches $15.40.
  • Santa Fe County: $15.40 per hour and $4.62 for tipped workers from March 1, 2026, for businesses in the county outside the City of Santa Fe, the City of Española and the Town of Edgewood.
  • Albuquerque: the city's minimum wage page lists $12.00 per hour for 2026 and $7.20 for tipped employees.

Other cities and counties can adopt ordinances too, so check with the local government where your employees work.

Overtime in New Mexico

The Minimum Wage Act provides that an employee may not be required to work more than 40 hours in any week of seven days unless paid one and one-half times the employee's regular hourly rate for the extra hours. New Mexico has no daily overtime rule. The state rule mirrors the federal 40-hour standard, but the state and federal exemption lists are not identical, so review each salaried role against both before treating it as exempt. Our FLSA overtime guide explains regular-rate calculations, and the overtime calculator can check a week's totals.

Meal and rest breaks

New Mexico does not have a general meal or rest break requirement for adult employees. The DOL meal-period table notes only an older provision stating that when a meal period is granted in industrial, mercantile and certain service industries, it must be at least half an hour and not counted as time worked, and it does not require a meal period. The DOL rest-period table does not list New Mexico, which means the state does not require paid rest periods. If you choose to provide breaks, apply your policy consistently and record them accurately.

Paid sick leave: the Healthy Workplaces Act

The Healthy Workplaces Act (House Bill 20, Chapter 131 of 2021) took effect on July 1, 2022 and applies to any private employer with one or more employees, including part-time, seasonal and temporary workers. Government employers are excluded. The main rules:

  • Accrual: employees earn at least one hour of paid sick leave for every 30 hours worked. Employers may choose a faster rate.
  • Use cap: an employer is not required to let an employee use more than 64 hours in a 12-month period.
  • Carryover: unused accrued leave carries over from year to year.
  • Front-loading: instead of accrual, employers may grant the full 64 hours at the start of the year.
  • Uses: the employee's own illness or medical care, care of a family member, certain meetings at a child's school or place of care, and absences related to domestic abuse, sexual assault or stalking.
  • Notice: employers must give written or electronic notice of the law when employment begins and post a notice in each workplace.
  • Records: employers must keep records of hours worked and sick leave accrued and used for the preceding 48 months.
  • Separation: the law does not require payout of unused sick leave when employment ends.

The PTO accrual calculator can help you model a one-hour-per-30 accrual against your schedules.

Paydays and final paychecks

The DOL state payday table lists New Mexico as a semimonthly payday state, with monthly paydays allowed for executive, administrative and professional personnel.

Final pay deadlines

The state's wage payment law (NMSA 50-4-4 and 50-4-5, as quoted in Senate Bill 109 of 2017) sets these deadlines:

  • Discharged employees: when the amount owed is fixed and determined, wages are due within five days of the discharge. When wages are based on a task, piece or commission, or are otherwise not fixed, settlement and payment are due within ten days.
  • Employees who quit: wages become due and payable at the next succeeding payday.

Build your offboarding checklist around these dates so the final check is cut on time.

Child labor hours in New Mexico

For workers under 16, the DOL state child labor table lists New Mexico's limits as 8 hours a day and 40 hours a week on non-school days and weeks, and 3 hours a day and 18 hours a week when school is in session. Federal rules on hours of the day and prohibited occupations also apply to covered employers. New Mexico's Child Labor Act has its own paperwork rules, so check with DWS about any work permit or certificate requirement before scheduling a minor.

Recordkeeping and posters

Keep records of hours worked, pay rates and sick leave accrual and use; the Healthy Workplaces Act alone requires 48 months of records. The Healthy Workplaces Act requires a paid sick leave notice in each workplace. For the full list of state posters, check the DWS State and Federal Posters page, and if you have staff in Santa Fe, review the city or county living wage ordinance for its own notice rules.

How EZTime helps New Mexico employers

New Mexico's sick leave law applies to businesses of every size, so accurate hours drive accruals as much as payroll. EZTime captures time from a GPS mobile time clock with geofencing, NFC tags, a tablet kiosk or biometric clocks, accrues sick leave and PTO balances from actual hours worked and sends overtime and break alerts before a week passes 40 hours. Scheduling with shift templates and swaps makes coverage simple, and payroll-ready Excel and PDF exports work with any payroll software. See the attendance clock and pricing: plans start at $2 per employee per month with a 14-day trial.

This guide is general information, not legal advice. Laws change; check the New Mexico Department of Workforce Solutions or an employment attorney. Last reviewed November 2026.

Frequently asked questions

The statewide minimum wage is $12.00 per hour. Tipped employees may be paid a $3.00 cash wage if tips bring them up to $12.00, and the City and County of Santa Fe require $15.40.

No. New Mexico requires time and a half only for hours over 40 in a seven-day week.

No. New Mexico has no general meal or rest break requirement for adult employees, although employers may choose to offer breaks.

Under the Healthy Workplaces Act, employees earn at least one hour of paid sick leave for every 30 hours worked. Employers may limit use to 64 hours in a 12-month period, and unused leave carries over.

A discharged employee must be paid within five days when the amount is fixed, or ten days for task, piece or commission pay. An employee who quits is paid on the next regular payday.

Keep New Mexico timekeeping compliant

Join more than 10,000 businesses that manage their teams with EZTime. 14-day trial, no credit card required.