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Two Competing Minimum Wage Bills Advance in New Mexico Legislature


Last week, two different minimum wage bills passed the Senate Public Affairs Committee and are now to be taken up by another Senate Committee, the Senate Corporations and Transportation Committee, in the New Mexico Legislature.  While both minimum wage bills would provide a boost to minimum wage workers in the state, they do differ in some respects.  Of note, the statewide minimum wage rate in New Mexico is currently set at $7.50/hour for most workers and $2.13/hour for tipped workers.  (However, some cities in the state have a higher minimum wage rate for hourly workers, including Santa Fe at $11.40/hour, Las Cruces at $10.10/hour, and Albuquerque at $9.20/hour.)


  • House Bill 31
This legislation, proposed by Representative Miguel Garcia, would raise the statewide minimum wage rate to $10/hour this July and provide a phased in increase to $12/hour in 2021.  Under this proposal, there would be inflation adjusted increased after 2021.  This past Saturday, House Bill 31 advanced out of Committee on a 4 - 1 vote.  Currently, this minimum wage proposal has been favored by a variety of advocacy groups and union representatives.

  • Senate Bill 437
This legislation, proposed by Senator Clemente Sanchez, would raise the statewide minimum wage rate to $9.25/hour this October and to $10/hour next April.  Notably, this legislation does not provide for inflation adjustments.  As well, there is a carve out allowed for high school students, in which their hourly minimum wage rate would be capped at $8.50/hour.  This past Saturday, Senate Bill 437 advanced out of Committee on a 3 - 2 vote.  Currently, this minimum wage proposal has been favored by chambers of commerce and other business groups in the state.


While these two pieces of legislation do have a few differences, they do share some similarities.  Neither House Bill 31 nor Senate Bill 437 would prohibit local communities and cities from establishing higher minimum wage rates.  These local wage rates would remain in effect so long as they stayed above the statewide minimum wage rate.  As well, both pieces of legislation would set a sub-minimum wage rate for waiters and other tipped workers at 30% of the regular minimum wage rate.

With a newly elected Democratic Governor that campaigned on raising the statewide minimum wage rate to $10/hour this year and $12/hour by 2022 (with inflation adjustments thereafter) and Democrats controlling both the House and Senate, I think it is highly likely that the New Mexico Legislature finds some middle ground between House Bill 31 and Senate Bill 437 and manages to approve a higher statewide minimum wage rate in the near future.


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