Bill > HB522

This bill proposes several key changes to New Mexico's minimum wage laws. Starting July 1, 2025, state agencies contracting for services must include provisions that protect contractors and subcontractors from wage increase costs and ensure that workers receive wage increases concurrent with state minimum wage increases. The bill defines key terms like "contract" and "services" to clarify these requirements. Additionally, the bill introduces an annual cost-of-living adjustment for the state minimum wage, beginning in January 2026, which will be calculated using the Consumer Price Index (CPI), a measure of the average change in prices paid by urban consumers. The CPI increase will be applied to the minimum wage rate, rounded to the nearest five cents, with a cap ensuring the increase does not exceed 104% of the previous year's minimum wage. For tipped employees, the bill mandates that they must be paid an hourly rate equal to 25% of the prevailing minimum wage rate, with tips making up the remainder to meet the full minimum wage. These changes aim to provide more consistent and predictable wage increases for workers while protecting employers from sudden, significant wage cost jumps.

Military Affairs and Security

https://www.nmlegis.gov/Legislation/Legislation?chamber=H&legtype=B&legno=522&year=25