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NM HB22

NM HB22
Prohibit Credit Card Fee Tip Deductions


summary

Introduced
01/21/2025
In Committee
03/18/2025
Crossed Over
02/18/2025
Passed
Dead
03/22/2025

Introduced Session

2025 Regular Session

Bill Summary

AN ACT RELATING TO EMPLOYMENT; AMENDING THE MINIMUM WAGE ACT TO PROHIBIT EMPLOYERS FROM DEDUCTING CREDIT CARD FEES OR COSTS FROM EMPLOYEE TIPS; DECLARING AN EMERGENCY.

AI Summary

This bill amends New Mexico's Minimum Wage Act to prohibit employers from deducting credit card processing fees from employee tips. Specifically, the bill adds a new provision requiring employers who accept credit card tips to pay employees the full amount of the gratuity indicated on the credit card slip, without subtracting any processing fees or other costs charged by credit card companies. This means that if a customer leaves a $10 tip on a credit card, the employee must receive the entire $10, even if the employer incurs fees for processing the transaction. The bill includes an emergency clause, which means it would take effect immediately upon being signed into law, providing immediate protection for tipped workers in the state. The legislation builds upon existing state minimum wage laws that already protect workers' tip earnings, such as requiring that tips be retained by employees and allowing tip pooling among wait staff, while adding a new layer of financial protection by preventing employers from reducing tip income through credit card processing fee deductions.

Committee Categories

Health and Social Services, Military Affairs and Security

Sponsors (6)

Last Action

STBTC: Reported by committee with Do Pass recommendation (on 03/18/2025)

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