Analysis

Synopsis:

 Senate Bill 35 (SB35) amends employment law to remove the exception to the minimum wage requirement for secondary school students.

Analysis:

 Senate Bill 35 (SB 35) amends Section 50-4-22 NMSA 1978 (being Laws 1955, 
Chapter 200, Section 3, as amended) of Employment Law.

In Section 1 of SB 35, Section 50-4-22 NMSA 1978 (being Laws 1955, 
Chapter 200, Section 3, as amended) addressing minimum wages is amended as follows: 
Subsection A deletes reference to Subsection B or D and inserts Subsection C. The minimus wages read as follows:  
A. Except as provided in Subsection C of this section, an employer shall pay to an employee a minimum wage rate beginning in 2021 as follows:
(3) beginning January 1, 2021 and prior to January 1, 2022, at least $10.50 an hour; 
(4) beginning January 1, 2022 and prior to January 1, 2023, at least $11.50 an hour; and 
(5) on and after January 1, 2023, at least $12.00 an hour.
 
Item B specifying the minimum wage for secondary school students is deleted and the document is relettered. This change provides that secondary school students be paid the wages as listed in Subsection A. 

Subsection C still reads as follows:
C. An employee who customarily and regularly receives more than $30.00 a month in tips shall be paid a minimum hourly wage as follows:
(3) beginning January 1, 2021 and prior to January 1, 2022, at least $2.55 an hour; 
(4) beginning January 1, 2022 and prior to January 1, 2023, at least $2.80 an hour; 
(5) on and after January 1, 2023, at least $3.00 an hour; and 
(6) 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 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 wait staff.

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