Actions: HPREF [2] HLVMC/HCEDC-HLVMC [3] DP/a-HCEDC
Scheduled: Not Scheduled
House Bill 28 (HB 28) provides an annual cost-of-living increase to the state minimum wage rate beginning in 2023. HB 28 provides that certain tipped employees receive an hourly rate that is 25 percent of the prevailing hourly minimum wage rate plus tips. HB 28 specifies an effective date for these provisions as July 1, 2023.Legislation Overview:
House Bill (HB 28) Section 1 amends Section 50-4-22 of Employment Law to specify that as provided in Subsection C, an employer shall pay to an employee a minimum wage rate of at least $12.00 an hour. HB 28 inserts the requirement that as of July 1, 2023, the minimum wage rate shall be increased for the cost of living as provided in Subsection E of this section. HB 28 amends Section C to specify that an employee who customarily and regularly receives more than $30.00 a month in tips shall be paid a minimum hourly wage that is 25 percent of the prevailing hourly minimum wage rate at the time the hours were worked; provided that the employer may consider tips as part of wages, but the tips combined with the employer's cash wage shall not equal less than the minimum wage rate. HB 28 inserts Section E that provides that the minimum wage rate shall be increased by the cost of living as measured by the consumer price index. Beginning on July 1, 2023, and each successive year, the minimum wage rate shall be increased by the increase in the cost of living. The increase in the cost of living shall be measured by the percentage increase of the consumer price index in the immediately preceding calendar year as published by the United States Department of Labor, with the amount of the minimum wage rate increase rounded to the nearest multiple of five cents ($.05); provided that the minimum wage rate shall not be adjusted downward as a result of a decrease in the cost of living. The Workforce Solutions Department shall publish by May 1 of each year the adjusted minimum wage rates that shall take effect the following July 1. HB 28 Section 2 states the effective date of the provisions of this act is July 1, 2023.Amendments:
House Bill (HB 28) Section 1 amends Section 50-4-22 of Employment Law to specify that as provided in Subsection C, an employer shall pay to an employee a minimum wage rate of at least $12.00 an hour. HB 28 inserts the requirement that as of July 1, 2023, the minimum wage rate shall be increased for the cost of living as provided in Subsection E of this section. HB 28 amends Section C to specify that an employee who customarily and regularly receives more than $30.00 a month in tips shall be paid a minimum hourly wage that is 25 percent of the prevailing hourly minimum wage rate at the time the hours were worked; provided that the employer may consider tips as part of wages, but the tips combined with the employer's cash wage shall not equal less than the minimum wage rate. HB 28 inserts Section E that provides that the minimum wage rate shall be increased by the cost of living as measured by the consumer price index. Beginning on July 1, 2023, and each successive year, the minimum wage rate shall be increased by the increase in the cost of living. The increase in the cost of living shall be measured by the percentage increase of the consumer price index in the immediately preceding calendar year as published by the United States Department of Labor, with the amount of the minimum wage rate increase rounded to the nearest multiple of five cents ($.05); provided that the minimum wage rate shall not be adjusted downward as a result of a decrease in the cost of living. The Workforce Solutions Department shall publish by May 1 of each year the adjusted minimum wage rates that shall take effect the following July 1. HB 28 Section 2 states the effective date of the provisions of this act is July 1, 2023. HB 28 relates to HB 25 relating to providing a cost of living increase to the minimum wage. The differences are in effective dates and the specifics for application of the cost of living increase. Amendment House Bill 28 (HB 28) is amended by the Labor, Veterans &n Military Affairs Committee (HLVMC) and recommends at Do Pass as amended. - In the title, change the minimum wage change to begin in 2024, rather than 2023 and include ADDING A DEFINITION OF "CONSUMER PRICE INDEX. - Insert SECTION 1, which amends Employment Law Section 50-4-21 NMSA 1978 (being Laws 1955, Chapter 200, Section 2, as amended) to insert definitions of A. consumer price index ; B. employ; C. employer; D. employee, which shall not include employees as described in paragraphs (1) through (10). Succeeding sections are renumbered accordingly. -Throughout this amendment, the beginning dates are moved to a further calendar date, in some cases to the next year and some cases from July to January. - Subsection E is changed to read: E. On July 1, 2023 and on July 1 of each successive year, the minimum wage rate shall be increased by the increase in the cost of living. The increase in the cost of living shall be adjusted by multiplying the minimum wage as of January 1, 2023 by a fraction, the numerator of which is the consumer price index ending in September of the previous year and the denominator of which is the consumer price index ending in September 2022” with the amount of the minimumRelates To:
HB B 28 relates to HB 25 relating to providing a cost of living increase to the minimum wage. The differences are in effective dates and the specifics for application of the cost of living increase.