SENATE BILL 449

47th legislature - STATE OF NEW MEXICO - second session, 2006

INTRODUCED BY

Ben D. Altamirano

AN ACT

RELATING TO PAYMENT OF WAGES; INCREASING THE MINIMUM WAGE IN THREE PHASES; PREEMPTING LOCAL INCREASES FOR FIVE YEARS; PRESERVING LOCAL INCREASE ORDINANCES IN EFFECT ON FEBRUARY 1, 2006.

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

     Section 1. Section 50-4-22 NMSA 1978 (being Laws 1955, Chapter 200, Section 3, as amended by Laws 2005, Chapter 302, Section 1 and by Laws 2005, Chapter 306, Section 1) is amended to read:

     "50-4-22. MINIMUM WAGES.--

          A. An employer [except as provided in Section 50-4-21 NMSA 1978] shall pay the minimum wage rate of five dollars fifteen cents ($5.15) an hour [except that] through December 31, 2006. As of January 1, 2007, an employer shall pay the minimum wage rate of six dollars fifty cents ($6.50) an hour. As of January 1, 2008, an employer shall pay the minimum wage rate of seven dollars ($7.00) an hour. As of January 1, 2009, an employer shall pay the minimum wage rate of seven dollars fifty cents ($7.50) 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.

          [B.] C. An employee [subject to Subsection A of this section] 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). The employer may consider tips as part of wages, but the tips combined with the employer's cash wage shall not equal less than [five dollars sixty cents ($5.60) per hour] the minimum wage rate as provided in Subsection A of this section. 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.  

          [C.] D. An employee subject to the provisions of Subsection A of this section 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 2. A new section of the Minimum Wage Act is enacted to read:

     "[NEW MATERIAL] TEMPORARY STATE PREEMPTION; SAVING CLAUSE.--

          A. Cities, counties, home rule municipalities and other political subdivisions of the state are prohibited from adopting or continuing in effect any law or ordinance that would increase the minimum wage rates set forth in the Minimum Wage Act. The provisions of this subsection expire on December 31, 2011.

          B. A local law or ordinance in effect on February 1, 2006 that provides for a higher minimum wage rate than that set forth in the Minimum Wage Act shall continue in full force and effect until repealed."

     Section 3. EFFECTIVE DATE.--The effective date of the provisions of this act is January 1, 2007.

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