SENATE BILL 321

53rd legislature - STATE OF NEW MEXICO - first session, 2017

INTRODUCED BY

Pete Campos

AN ACT

RELATING TO MINIMUM WAGES; RAISING THE MINIMUM WAGE RATE; INCREASING THE MINIMUM WAGE RATE FOR TIPPED EMPLOYEES AND ADDING A PREMIUM FOR EMPLOYEES WITH A VALID SERVER PERMIT.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. Section 10-7-9 NMSA 1978 (being Laws 1974, Chapter 10, Section 2) is amended to read:

     "10-7-9. MINIMUM SALARY RATE.--Every state employee and every person regularly employed at a state educational institution named in Article 12, Section 11 of the constitution of New Mexico [constitution], except student employees as defined by the [board of educational finance] higher education department, shall receive a salary at a rate equal to at least [four hundred dollars ($400) per month] eight dollars seventy-five cents ($8.75) per hour pursuant to Section 50-4-22 NMSA 1978."

     SECTION 2. Section 50-4-22 NMSA 1978 (being Laws 1955, Chapter 200, Section 3, as amended) is amended to read:

     "50-4-22. MINIMUM WAGES.--

          A. [An employer shall pay an employee the minimum wage rate of six dollars fifty cents ($6.50) an hour.] As of [January 1, 2009] July 1, 2017, an employer shall pay [the] a minimum wage rate of [seven dollars fifty cents ($7.50)] eight dollars seventy-five cents ($8.75) an hour.

          B. An employer furnishing food, utilities, supplies or housing to an employee who is engaged in agriculture may deduct the reasonable value of such furnished items from any wages due to the employee.

          C. An employee who customarily and regularly receives more than thirty dollars ($30.00) a month in tips shall be paid a minimum hourly wage of [two dollars thirteen cents ($2.13)] two dollars fifty cents ($2.50). The employer may consider tips as part of wages, but the tips combined with the employer's cash wage shall not equal less than the minimum wage rate as provided in Subsection A of this section; provided that if the employee is required by the employer to have and does have a valid server permit issued pursuant to the Alcohol Server Education Article of the Liquor Control Act, the tips combined with the employer's cash wage shall not equal less than a minimum wage rate of nine dollars seventy-five cents ($9.75) an hour. All tips received by such employees shall be retained by the employee, except that nothing in this section shall prohibit the pooling of tips among employees.

          D. An employee shall not be required to work more than forty hours in any week of seven days, unless the employee is paid one and one-half times the employee's regular hourly rate of pay for all hours worked in excess of forty hours. For an employee who is paid a fixed salary for fluctuating hours and who is employed by an employer a majority of whose business in New Mexico consists of providing investigative services to the federal government, the hourly rate may be calculated in accordance with the provisions of the federal Fair Labor Standards Act of 1938 and the regulations pursuant to that act; provided that in no case shall the hourly rate be less than the federal minimum wage."

     SECTION 3. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2017.

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