H 25 MINIMUM WAGE INCREASE & INDEXING

Rep Christine Chandler

Actions: HPREF [2] HLVMC/HCEDC-HLVMC [3] DNP-CS/DP-HCEDC

Scheduled: Not Scheduled

 House Bill 25 (HB 25) increases the minimum wage for employees and provides an annual adjustment to the minimum wages based on inflationary measures.
 

 House Bill 25 (HB 25) amends labor law to increase the minimum wage for employees for 2023 through 2025 and to provide an annual adjustment to the minimum wages based on inflationary measures.

HB 25 amends Section 50-4-22 NMSA of labor law to include Subsections C and E to specify that beginning January 1, 2023, an employer shall pay to an employee a minimum wage rate of at least $12.00 an hour; beginning January 1, 2024, at least $16.00 an hour; and on and after January 1, 2025, $16.00 an hour adjusted annually pursuant to the provisions of Subsection E of this section to adjust for inflation. 

HB 25 adds to Subsection C that after January 1, 2023, the minimum wage of at least $3.00 per hour be adjusted for inflation pursuant to Subsection E.

HB 25 inserts Subsection E to specify that beginning on January 1, 2025 the minimum wage rate shall be increased by the percentage increase during the previous year of the consumer price index as published by the United States department of labor. The Workforce Solutions Department shall notify employers of the minimum wage for the next year by November 1, 2024 and by November 1 of each successive year. 

 House Bill 25 (HB 25) is substituted by the House Labor, Veterans’ and Military Affairs Committee to make the following changes:

SECTION 1 amends Employment Law Section 50-4-21 NMSA 1978 (being Laws 1955, Chapter 200, Section 2, as amended) in definitions used in the  Minimum Wage Act inserts Subsection A that defines “consumer price index” and reletter the section.

SECTION 2 amends Employment LawSection 50-4-22 NMSA 1978 (being Laws 1955, Chapter 200, Section 3, as amended) to insert under minimum wages Subsection A(5) to provide that an employer shall pay to an employee a minimum wage rate of: 
(5) on and after January 1, 2026, $15.50 an hour adjusted annually pursuant to the provisions of Subsection E of this section.

Subsection C, which addresses the minimum hourly wage of employees who receive tips, changes paragraph (5) to change the date from January 1, 2025 to January 1, 2026. Subsection C(6) is to read  
(6) on and after January 1, 2026, at least $3.00 an hour adjusted pursuant to the provisions of Subsection E of this section;

Subsection E is substituted to provide the minimum wage rates provided in this section begin January 1, 2026 instead of 2025, then provides directions and a formula for determining the minimum wage rate as of January 1, 2025. Subsection E changes the date the Workforce Solutions Department shall post these changes on its website and notify employers to November 1, beginning in 2025.
 

 House Bill 25 (HB 25) is substituted by the House Labor, Veterans’ and Military Affairs Committee to make the following changes:

SECTION 1 amends Employment Law Section 50-4-21 NMSA 1978 (being Laws 1955, Chapter 200, Section 2, as amended) in definitions used in the  Minimum Wage Act inserts Subsection A that defines “consumer price index” and reletter the section.

SECTION 2 amends Employment LawSection 50-4-22 NMSA 1978 (being Laws 1955, Chapter 200, Section 3, as amended) to insert under minimum wages Subsection A(5) to provide that an employer shall pay to an employee a minimum wage rate of: 
(5) on and after January 1, 2026, $15.50 an hour adjusted annually pursuant to the provisions of Subsection E of this section.

Subsection C, which addresses the minimum hourly wage of employees who receive tips, changes paragraph (5) to change the date from January 1, 2025 to January 1, 2026. Subsection C(6) is to read  
(6) on and after January 1, 2026, at least $3.00 an hour adjusted pursuant to the provisions of Subsection E of this section;

Subsection E is substituted to provide the minimum wage rates provided in this section begin January 1, 2026 instead of 2025, then provides directions and a formula for determining the minimum wage rate as of January 1, 2025. Subsection E changes the date the Workforce Solutions Department shall post these changes on its website and notify employers to November 1, beginning in 2025.
 

 HB 25 relates to HB 28 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.