Bill > HB125

This bill amends existing New Mexico law to increase the state's minimum wage, starting with a raise to $7.50 per hour, then to $8.40 per hour on January 1, 2017, $9.20 per hour on January 1, 2018, and $10.10 per hour on January 1, 2019. Beyond these set increases, the minimum wage will be adjusted annually for the cost of living, measured by the consumer price index, with the increase rounded to the nearest five cents and capped at a 4% rise per year, and it will never be decreased. Additionally, the bill changes the minimum hourly wage for tipped employees, who customarily and regularly receive more than $30 per month in tips, from a fixed low rate to 40% of the general minimum wage, ensuring that tips combined with the employer's cash wage still meet the overall minimum wage. The bill also specifies that the changes will take effect on July 1, 2016.