New Mexico Labor Laws (2025 Guide)

What’s New in 2025

• Minimum wage increase across Santa Fe County
• Tipped minimum wage increase in Albuquerque 

Labor Law Posters

Federal labor law posters
State labor law posters

Wage and Hour Laws

Minimum Wage

In 2025, the state minimum wage in New Mexico remains $12.00 per hour. 

Local governments in New Mexico are free to set higher wage standards. This has led cities like Santa Fe and Albuquerque to adopt their own rates. In Santa Fe, both the city and county increased their minimum wages to $15.00 per hour starting March 1, 2025. 

While there are no broad exceptions to the minimum wage law for specific industries, some agricultural or seasonal employees, apprentices and learners, and employees with disabilities may fall under more narrowly defined exemptions. Most employers are expected to follow the prevailing minimum wage requirements.

Tipped Minimum Wage

Across most of New Mexico, employers are allowed to pay tipped employees (employees who receive $30 in tips “customarily” and “regularly”) a lower cash wage of $3.00 per hour, provided that tips make up the difference so that total earnings meet or exceed the full minimum wage. 

Tipped workers in unincorporated areas of Santa Fe County had their base tipped minimum wage rise to $4.50 per hour in 2025. In Albuquerque, the tipped minimum wage is $7.20 as of 2025. 

Overtime Laws

In New Mexico, overtime regulations align closely with federal standards under the Fair Labor Standards Act (FLSA).

Non-exempt employees are entitled to overtime pay at 1.5 times their regular rate for any hours worked over 40 in a 7-day workweek. This applies regardless of whether the employee is paid hourly or salaried, unless they meet specific exemption criteria. 

Certain categories of employees are exempt from overtime provisions, including:

• Executive, administrative, and professional employees who meet the Duties Test and earn a minimum salary of $684 per week (equivalent to $35,568 annually).
• Outside sales employees.
• Employees engaged in agriculture or the ginning of cotton.

Employers in New Mexico aren’t permitted to offer compensatory time off in lieu of paying overtime wages. 

Break Laws

Meal and Rest Breaks

New Mexico doesn’t have a state law requiring private employers to provide meal or rest breaks to adult employees. Employers covered by the FLSA should follow the federal guidelines.

Under the FLSA, rest breaks lasting 5 to 20 minutes are considered compensable work time, so if an employer chooses to offer short rest breaks, the employee must be paid for that time. Meal breaks, typically 30 minutes or longer, aren’t required under federal law but may be unpaid if the employee is fully relieved of duties during the break.

Lactation Breaks

New Mexico employers are required to provide lactation breaks for nursing mothers for 12 months after the birth of a child. 

Recordkeeping Requirements

New Mexico employers must maintain accurate records of hours worked and wages paid for each employee for at least 1 year. 

While New Mexico law doesn’t specify detailed recordkeeping requirements beyond hours and wages, employers should also be aware of federal requirements under the FLSA. The FLSA mandates that covered employers keep records on wages, hours, and other items, including:

• Employee’s full name and Social Security Number.
• Address, including zip code.
• Birth date (if younger than 19), sex, and occupation.
• Time and day of the week when the employee’s workweek begins.
• Total hours worked each day and each workweek.
• Pay frequency (e.g., “$9 per hour”, “$440 a week”, “piecework”).
• Regular hourly pay rate.
• Total daily/weekly straight-time earnings.
• Total overtime earnings for the workweek.
• Everything added to or deducted from the employee’s wages.
• Total wages paid each pay period, date of payment, and pay period.

These federal records must be kept for at least 3 years for payroll records and 2 years for records explaining wage computations.

Scheduling Laws

New Mexico doesn’t have any state or local-level predictive scheduling laws in place. Private employers aren’t legally required to provide advance notice of work schedules, offer predictability pay for last-minute changes, or adhere to specific rest periods between shifts. 

Employee Compensation and Benefits

Reporting Time Pay

In New Mexico, employers aren’t legally required to provide “reporting time pay”—compensation for employees who report to work but are sent home before completing their scheduled shift. If an employee arrives for a scheduled shift and is dismissed early or not assigned any work, the employer is obligated to pay only for the actual hours worked.

Payday Frequency and Method

New Mexico employers are required to establish regular paydays that occur at least twice per month, ensuring that no more than 16 days pass between pay periods. 

For employees compensated on a task, piece, or commission basis, employers and employees can agree in writing at the time of hiring to a monthly pay schedule. In such cases, wages must be paid by the tenth day of the following month.

Acceptable methods for wage payment in New Mexico include:

• Cash.
• Checks.
• Direct deposit into the employee’s account at a financial institution with the voluntary authorization of the employer, employee, and financial institution.
• Payroll vouchers or drafts, as long as they’re payable at face value and can be converted into cash on demand at a bank.

Paystub Requirements

In New Mexico, employers must provide employees with pay stubs each payday. These pay stubs must be written or printed—electronic-only delivery isn’t permitted unless employees are able to access and print their pay stubs. 

Wage Deductions and Garnishments

Employers are allowed to make deductions from an employee’s wages only under certain conditions:

• Mandatory deductions: These include federal and state taxes, Social Security, and other deductions required by law.
• Authorized deductions: Deductions for items such as uniforms, tools, or other necessary equipment can be made if the employee provides written consent.
• Advance or overpayment recovery: Employers may recover wage advances or overpayments without written authorization, provided the employee’s wages don’t fall below the minimum wage after the deduction.

All deductions must be itemized on an employee’s pay stub. 

Wage garnishment involves a court order directing an employer to withhold a portion of an employee’s earnings to pay a debt. In New Mexico, the amount that’s exempt from garnishment depends on the type of debt:

• For child support, up to 50% of an employee’s disposable earnings (i.e., the amount remaining after legally required deductions) may be garnished.

For all other debts, the exempt portion is the greater of:

• 75% of the employee’s disposable earnings, or—
• An amount equal to 40 times the highest applicable minimum hourly wage where the employee works.

Only the portion of disposable earnings above this exemption can be garnished.

Other debts may fall under federal garnishment limits.

​​Employers must comply with garnishment orders and ensure that deductions don’t exceed the legal limits. Failure to adhere to these regulations can result in penalties. Employers should also be aware that certain types of income—such as Social Security benefits, veterans’ benefits, and workers’ compensation—are generally exempt from garnishment.

Final Paycheck Laws

In New Mexico, the timing of a final paycheck depends on whether the employee was discharged or resigned.

If an employee is discharged, fired, or laid off, their final wages must be paid within 5 days of the discharge date. This excludes weekends and holidays, meaning the deadline counts only regular business days. Task, piece, and commission wages are due within 10 days of discharge.

If an employee quits or resigns voluntarily, the employer must issue the final paycheck by the next regular payday. This applies even if the employee gives no notice.

Final pay must include all wages earned, including any accrued and unused vacation pay if the employer’s policy or employment agreement provides for its payout. Employers aren’t required by law to pay out vacation unless such a policy is in place.

Workers’ Compensation

In New Mexico, most employers are required to provide workers’ compensation coverage for their employees. This applies to private businesses with 3 or more employees, including part-time and seasonal employees and employed family members, as well as to all employers engaged in activities deemed inherently dangerous, regardless of employee count.

To obtain coverage, employers must either purchase insurance through a licensed carrier or apply to become self-insured by meeting financial and regulatory criteria set by the New Mexico Workers’ Compensation Administration (WCA). Failure to carry required coverage can result in fines and liability for all benefits due to injured workers.

Workers’ compensation benefits in New Mexico include:

• Medical treatment for work-related injuries or illnesses, with no cost to the employee.
• Temporary total disability (TTD) payments if the employee is unable to work during recovery.
• Permanent partial or total disability payments for lasting impairments.
• Vocational rehabilitation services when workers can’t return to their prior jobs.
• Death benefits and funeral expenses for dependents of workers who die from job-related causes.

Employees must report a work-related injury or illness to their employer within 15 days of the date they become aware of the condition. Employers, in turn, must report the injury to their insurance carrier and file a First Report of Injury form with the WCA within 72 hours.

If disputes arise regarding benefits, medical care, or return-to-work plans, the WCA offers a structured dispute resolution process. This includes:

• Informal mediation by WCA ombudsmen.
• Formal adjudication through a trial with a WCA-appointed judge.
• Appeals to the New Mexico Court of Appeals if necessary.

Applicants have 1 year from the date of the incident to file a formal complaint with the WCA if benefits are denied.

Unemployment Insurance

In New Mexico, unemployment insurance (UI) provides temporary financial assistance to workers who lose their jobs and who meet specific eligibility criteria. To qualify for benefits, applicants must:

1. Have earned sufficient wages during a defined base period (typically the first 4 of the last 5 completed calendar quarters).
2. Be unemployed through no fault of their own (e.g., layoffs, business closures).
3. Be able to work, available for work, and actively seeking suitable employment.
4. Register for work with the New Mexico Workforce Connection system.

Quitting a job voluntarily, being fired for misconduct, or refusing suitable work may disqualify a claimant from receiving benefits. Weekly benefit amounts range from approximately $107 to $577, depending on past wages. Benefits are typically paid for up to 26 weeks. Extended benefits may be available during periods of high unemployment.

Individuals must file a claim through the New Mexico Department of Workforce Solutions (DWS). Claims can be submitted online or by phone. Applicants must file weekly certifications to remain eligible and report any income earned. 

Workplace Rights and Protections

Discrimination and Harassment

In New Mexico, both state and federal laws prohibit workplace discrimination and harassment based on specific protected characteristics. The primary state law is the New Mexico Human Rights Act (NMHRA), which applies to employers with 4 or more employees. This law offers broader protections than federal law in some areas and is enforced by the New Mexico Human Rights Bureau.

Under the NMHRA, it’s illegal to discriminate against an employee or job applicant based on:

• Race.
• Color.
• National origin.
• Ancestry.
• Religion.
• Sex (including pregnancy and childbirth), sexual orientation, and gender identity.
• Age (40 and older).
• Disability.
• Spousal affiliation.

These protections extend to hiring, firing, promotions, pay, job assignments, training, and other terms of employment. Harassment based on these characteristics is also unlawful, particularly if it creates a hostile work environment or results in adverse employment actions.

Employees who believe they have experienced discrimination or harassment must file a complaint with the New Mexico Human Rights Bureau within 300 days of the alleged incident. The process involves:

1. Filing an intake form and formal complaint.
2. An investigation by the Bureau.
3. Possible mediation or settlement.
4. Referral for a public hearing if no resolution is reached.

Employees may also choose to file a complaint with the federal Equal Employment Opportunity Commission (EEOC), which has a 300-day filing deadline in New Mexico.

Leave Laws

❌ Family and Medical Leave	New Mexico doesn’t have a state-level family and medical leave law, but eligible employees are covered under the federal Family and Medical Leave Act (FMLA). The FMLA provides up to 12 weeks of unpaid, job-protected leave per year for: • The employee’s own serious health condition. • Caring for a spouse, child, or parent with a serious health condition. • The birth, adoption, or foster placement of a child. • Certain circumstances related to a family member’s military service. To qualify, employees must work for an employer with 50 or more employees within a 75-mile radius and have at least 12 months of service and 1,250 hours worked in the past year.
✅ Paid Sick Leave	New Mexico enacted the Healthy Workplaces Act, requiring all private employers to provide paid sick leave. Employees earn 1 hour of sick leave for every 30 hours worked. Leave can be used for the employee’s or a family member’s illness, injury, or preventive care, as well as for reasons related to domestic abuse, sexual assault, or stalking. Employees may use up to 64 hours of paid sick leave per year. Accrued but unused leave carries over annually, though usage may be capped.
❌ Paid Family Leave	New Mexico doesn’t offer a paid family leave program beyond the state’s paid sick leave mandate. Employees may use accrued sick leave under the Healthy Workplaces Act for qualifying family-related needs.
❌ Pregnancy and Parental Leave	While there’s no specific state law mandating parental leave, pregnancy and childbirth-related conditions are covered under both the FMLA and New Mexico’s Human Rights Act. Employers with 4 or more employees must provide reasonable accommodations for pregnancy, including leave for medical needs related to pregnancy, childbirth, or related conditions.
❌ Vacation and Personal Leave	New Mexico doesn’t require private employers to offer paid vacation or personal leave. However, if an employer chooses to provide such benefits, the terms must be clearly communicated in written policies.

Military, Jury Duty, and Other Mandatory Leave

Military Leave	Under the federal Uniformed Services Employment and Reemployment Rights Act (USERRA) and New Mexico law, employees who are members of the military or National Guard are entitled to unpaid military leave for active duty, training, or emergency service. • Employers must reinstate returning service members to their previous or comparable positions with the same benefits and seniority. • Discrimination based on military service is prohibited.
Jury Duty Leave	Employees must be granted leave to serve on a jury. Employers are prohibited from discharging or otherwise retaliating against employees for jury service.  Leave may be unpaid, but employers can’t require employees to use accrued vacation or sick leave. Proof of jury service may be requested.
Crime Victim Leave	Employees who are victims of crimes, or whose immediate family members are victims, may be entitled to leave to attend related court proceedings.
Emergency Leave	Volunteer emergency responders are entitled to 10 business days off annually to respond to emergencies.
Voting Leave	New Mexico law allows employees up to 2 hours of paid leave to vote in a statewide election, unless the employee’s workday begins more than 2 hours after polls open or ends more than 3 hours before polls close. • Employers may designate the time during the workday when voting leave is taken. • Retaliation for using voting leave is prohibited.
Domestic Violence, Sexual Assault, and Stalking Leave	Under the Promoting Financial Independence for Victims of Domestic Abuse Act, employees can use up to 14 days of paid or unpaid leave a year related to domestic violence. Under the Healthy Workplaces Act, employees can use accrued paid sick leave for absences related to domestic violence, sexual assault, or stalking.

Child Labor Laws

New Mexico’s child labor laws follow both state statutes and the federal FLSA, with some New Mexico-specific requirements. The minimum age for employment is 14, and minors under 18 are subject to specific rules based on their age and whether school is in session.

To begin working, minors aged 14 to 17 must obtain a work permit—referred to as a work authorization—through the New Mexico Department of Workforce Solutions. This permit requires parental consent and documentation of school enrollment and age.

Minors are barred from jobs considered dangerous or inappropriate. Those under 18 may not work in industries such as roofing, demolition, meat processing, or any role that involves operating heavy machinery or handling hazardous materials. Additionally, minors aren’t permitted to work in businesses where alcohol is served for on-site consumption, regardless of their job duties.

Work Hour Restrictions for 14- and 15-year-olds

When school is in session	Can work:  • Up to 3 hours a day. • Up to 18 hours a week. • Between 7am and 7pm.
When school isn’t in session	Can work: • Up to 8 hours a day. • Up to 40 hours a week. • Between 7am and 9pm.

Workplace Safety and Health

Workplace safety and health are governed by the New Mexico Occupational Health and Safety Bureau (NM OSHA). This agency operates under the New Mexico Environment Department and is approved by the federal Occupational Safety and Health Administration (OSHA). It enforces safety standards for most private and public sector employers in the state.

OSHA retains authority over a few specific areas, such as maritime operations, federal employees, and military installations.

Under New Mexico’s plan, employers must:

• Provide a workplace free from recognized hazards that may cause death or serious harm.
• Comply with all state occupational safety and health regulations.
• Post the official NM OSHA poster informing employees of their rights and responsibilities.
• Maintain records of work-related injuries and illnesses using OSHA Forms 300, 301, and 300A (if applicable based on size and industry).
• Train employees on job-specific hazards and how to protect themselves.

Employers must report the following to NM OSHA:

• Fatalities within 8 hours.
• Hospitalizations, amputations, or losses of any eyes within 24 hours.
• Serious incidents and hazards that could result in imminent danger.

Reports can be made by phone or through the NM OSHA reporting portal. 

Workers have the right to a safe workplace and can report hazards without fear of their employer retaliating against them. 

Employers may face inspections in response to accidents, complaints, or targeted enforcement programs.

NM OSHA offers consultation services for employers through its Free On-Site Consultation Program, helping businesses identify and correct hazards without facing penalties. These services are particularly aimed at small and medium-sized businesses in high-hazard industries.

Labor Union Regulations

New Mexico isn’t a right-to-work state. This means that union security agreements—contracts that require all employees in a bargaining unit to pay union dues or fees as a condition of employment—are permitted under state law. 

However, employees still retain federal protections under the National Labor Relations Act (NLRA). The NLRA, administered by the National Labor Relations Board (NLRB), gives employees the right to:

• Organize or join labor unions.
• Bargain collectively through representatives of their choosing.
• Work together to improve working conditions or address concerns.
• Refrain from any of these activities.

Employers can’t retaliate against workers for participating in union activities or interfere with the formation or administration of a union. Importantly, employees can’t be forced to join a union but may be required to pay an agency fee or equivalent dues under certain agreements.

Public employees in New Mexico also have collective bargaining rights under the Public Employee Bargaining Act, which allows for union representation, contract negotiations, and dispute resolution for state and local government workers.

Employment Contracts and Severance

Employment Contract Laws

New Mexico is an at-will employment state, which means that employers can terminate employees at any time for any lawful reason—or no reason at all—without prior notice. Similarly, employees are free to resign at any time without cause or notice. 

However, this general rule can be limited by employment contracts, collective bargaining agreements, or illegal reasons for termination—such as discrimination. New Mexico recognizes other exceptions that can override the at-will presumption, including:

• Implied contracts based on employee handbooks, policies, or statements made during hiring.
• Public policy exceptions, such as firing an employee for filing a workers’ compensation claim or reporting illegal activity.
  

Restrictive covenants—including non-compete, non-solicitation, and confidentiality agreements—are enforceable in New Mexico but subject to limitations, such as:

• Non-compete agreements are generally disfavored and strictly construed. Courts will enforce them only if they’re reasonable in duration, geographic scope, and the type of activity restricted.
• New Mexico law prohibits non-compete agreements for healthcare practitioners, including doctors, dentists, and nurses, when these are entered into as a condition of employment.
• Non-solicitation agreements (restricting solicitation of clients or employees) and confidentiality agreements (protecting trade secrets and proprietary information) are more likely to be upheld if they’re narrowly tailored and reasonable in scope.

Severance Pay

In New Mexico, severance pay isn’t required by law. 

Additional State-Specific Employment Laws

Mini-COBRA

New Mexico has a Mini-COBRA law for small employers with fewer than 20 employees who aren’t covered by the federal COBRA statute. • Eligible employees and dependents who lose coverage can continue group health insurance for up to 18 months. • Coverage must be identical to what they had while employed, and the cost can’t exceed 102% of the full premium. • Employers must notify employees of continuation rights when coverage ends.

Ban-the-Box Law

New Mexico’s Criminal Offender Employment Act prohibits employers from asking about arrest or conviction history on initial job applications. Criminal history inquiries may be made during subsequent rounds of the hiring process.

Legal Resources for Employers and Employees

Here are some helpful resources for navigating employment laws: 

• New Mexico Department of Workforce Solutions: Has information on wage laws and unemployment benefits.
• New Mexico Legal Aid: Provides free legal assistance to low-income workers. 
• New Mexico Workers’ Compensation Administration: Offers guidance on filing claims and accessing benefits for work-related injuries.

Disclaimer

The information presented on this website about labor laws in New Mexico is a summary for informational purposes only and is not intended as legal advice. However, laws and regulations regularly change and may vary depending on individual circumstances. While we have made every effort to ensure the information provided is up to date and reliable, we cannot guarantee its completeness, accuracy, or applicability to your specific situation. Therefore, we strongly recommend that readers seek guidance from their legal department or a qualified attorney to ensure compliance with applicable laws and regulations. Please note that we cannot be held liable for any actions taken or not taken based on the information presented on this website.