Bill > HB305

This bill requires state agencies to modify their service contracts starting July 1, 2025, to include two key provisions: first, contractors and subcontractors must be financially protected from wage increases resulting from state minimum wage changes or mandated statutory benefit adjustments, ensuring they are "held harmless" for these additional costs; and second, workers employed under these contracts who are paid at minimum wage must receive wage increases that align with and occur simultaneously with state minimum wage increases. The bill defines several important terms, including "contract" as any service procurement agreement, "services" as labor or time not resulting in a specific end product, "statutory benefits" as legally required employee benefits, and "subcontract" as a subordinate contract procuring services under a main contract. By implementing these requirements, the bill aims to ensure that workers on public service contracts are not financially disadvantaged by legal changes to minimum wage and benefits, and that contractors are not unexpectedly burdened with increased labor costs.

Military Affairs and Security

https://www.nmlegis.gov/Legislation/Legislation?chamber=H&legtype=B&legno=305&year=25