Analysis

Synopsis:

 House Bill 110 (HB 110) increases the minimum wage for employees in phases, provides for an annual cost of living increase in that minimum wage rate beginning in 2025, and repeals  
Section 50-4-23 NMSA 1978 (being laws 1967, Chapter 242, Section 1, as amended), which provides for reduced minimum wages for persons with disabilities.

Analysis:

 House Bill 110 (HB 110) increases the minimum wage for employees in phases, provides for an annual cost of living increase in that minimum wage rate beginning in 2025, and repeals  
Section 50-4-23 NMSA 1978 (being laws 1967, Chapter 242, Section 1, as amended), which provides for reduced minimum wages for persons with disabilities.

SECTION 1. Amends Employment Law Section 50-4-21 NMSA 1978 (being Laws 1955, Chapter 200, Section 2, as amended by Laws 2019, Chapter 114, Section 1 and by Laws 2019, Chapter 242, Section 2) the definition of “employee” in Subsection C to delete and renumber all the exclusions except as follows:
(1) an individual employed by the United States, the state or any political subdivision of the state; provided, however, that for the purposes of Subsection A of Section 50-4-22 NMSA 1978, "employee" includes an individual employed by the state or any political subdivision of the state; or (2) G.I. bill trainees while under training.

SECTION 2. Amends Section 50-4-22 NMSA 1978 (being Laws 1955, Chapter 200, Section 3, as amended) to remove the reference to Subsection B and C of this section, which are deleted. Then, this section increases minimum wages as follows and change the dates for implementation as follows:
(4) beginning January 1, 2022 and prior to January 1, 2024, at least $12.00 an hour; and 
(5) beginning January 1, 2024 and prior to January 1, 2025, at least $15.00 an hour.

Subsections B through D are deleted and the section is re-lettered. The following text is inserted:
B. On or after January 1, 2025 and on January 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 measured by the percentage increase of the previous year of the consumer price index for all urban consumers, United States city average for all items, or its successor index, as published by the United States department of labor or its successor agency, with the amount of the minimum wage increase rounded to the nearest multiple of five cents ($.05); however, the minimum wage shall not be adjusted downward as a result of a decrease in the cost of living.

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