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New Mexico Minimum Wage Hike


New Mexico employees to see first wage hike in a decade — NEW MEXICO — Minimum wage,(Apr. 3, 2019)

New Mexico Governor Michelle Lujan Grisham on April 1 signed into law the first increase to the statewide minimum wage since 2009, delivering on a promise to New Mexico workers and families.

More than 100,000 New Mexicans stand to benefit from the escalating phased-in raises that will take effect beginning January 1, 2020, when the minimum wage will increase from the current $7.50 an hour to $9 an hour. After that, the minimum wage rate will increase as follows: $10.50 on January 1, 2021; $11.50 on January 1, 2022; and finally to $12 on January 1, 2023.

A compromise measure brokered by the governor in the waning days of the legislative session, the new state minimum wage law— S.B. 437— also provides for increases to the minimum wage for “tipped” employees, increasing from to $2.13 an hour to $2.35 an hour on January 1, 2020, to $2.55 an hour in 2021, $2.80 per hour in 2022 and ultimately reaching $3 an hour beginning January 1, 2023. Tipped employees are those who customarily and regularly receive more than $30 a month in tips.

In addition, the law provides for a reduced minimum wage rate of $8.50 per hour for students regularly enrolled in secondary school to work after school hours or when school is not in session.

“This increase represents progress,” said Governor Lujan Grisham. “No New Mexican who works 40 hours a week should live in poverty—period. Costs rise every year, but our minimum wage hadn’t moved in a decade. I’m thrilled to put stagnation behind us. This session, the Legislature sent a clear signal: We will not tolerate poverty wages in New Mexico. And this administration is putting working families first. I commend lawmakers who did not allow perfect to be the enemy of good as we worked toward the finish line on this measure. I made my preferences for the statewide minimum wage increase abundantly clear on the campaign trail and in my first months in office, and I am pleased to be moving forward.”

“When minimum wage workers get a raise, they don’t buy stocks on Wall Street,” said Workforce Solutions Secretary Bill McCamley. “They fix their car, go out to eat, or buy more school supplies on main street. Our neighbors Arizona and Colorado have had higher wages for years, and their economies are thriving. Rising wages are good for workers, families, and businesses. A quarter of New Mexico’s kids will see their families get more income with this increase. Everyone deserves a chance at the American dream, and this will help more New Mexicans dream bigger.”

Source: State of New Mexico, Office of the Governor, Press Release, April 2, 2019.

About the author, Rhamy

Rhamy grew up watching and working with his mother and grandmother in the senior insurance market. This familiarity with the struggles faced by people trying to navigate the incredibly complicated and heavily regulated healthcare market led him to start Poplar Financial while working on his degree at the University of Memphis. After completing his MBA and Bachelors in Finance and Economics, Rhamy guided Poplar Financial through the disruptive opportunity that is the Affordable Care Act. Since then Poplar Financial has received numerous awards from major insurance carriers and has completed its fourth year in a row of doubling in size. Now his team focuses on the processes around human resources and specializes in providing companies with between 20 and 1000 employees with the payroll, benefits, and HR needs.

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