Summary:

 House Bill 246 (HB 246) increases the minimum wage for certain employees; provides an annual adjustment to the minimum wages based on inflationary measures; and repeals a section of the Minimum Wage Act.  

Legislation Overview:

 House Bill 246 (HB 246) is amended as follows:

A definition is added to Section 50-4-21 NMSA 1978 of "consumer price index," meaning the consumer price index, not seasonally adjusted, for all urban consumers, United States city average for all items, or a successor index, as published by the United States department of labor for a twelve-month period ending September 30. The definition of employee is changed to:

 "Employee" includes an individual employed by an employer, but may not include: 

(1) an individual employed in a bona fide executive, administrative or professional capacity and forepersons, superintendents and supervisors; 
(2) salespersons or employees compensated upon piecework, flat rate schedules or commission basis; [(5) registered apprentices and learners otherwise provided by law; 
(3) G.I. bill trainees while under training; or
(4) any employee employed in agriculture if the employee is employed as a hand-harvest laborer and is paid on a piece-rate basis in an operation that has been, and is customarily and generally recognized as having been, paid on a piece-rate basis in the region of employment.

Section 50-4-22 NMSA 1978 is amended to state:

On and after January 1, 2026, an employer must pay an employee a minimum wage rate of seventeen dollars ($17.00) an hour adjusted annually.

On January 1, 2027 and on January 1 of each successive year, the minimum wage rate must be adjusted by multiplying the minimum wage as of January 1, 2026 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 September 2025, provided that the minimum wage rate may not be adjusted downward as a result of a decrease in the consumer price index. 

By November 1, 2026 and by November 1 of each successive year, the Workforce Solutions Department must post on its website and otherwise notify employers of the minimum wage for the next year.

Section 50-4-23 NMSA 1978, having to do with persons with disabilities, minimum wage, and Director of the Labor and Industrial Division powers and duties, is repealed.
 

Current Law:

 Current law does not include the proposed language for “consumer price index,” and excludes the following types of employees from the definition of “employee”:

•	an individual employed by the United States, the state or any political subdivision of the state, with certain exceptions; 
•	an individual engaged in the activities of an educational, charitable, religious or nonprofit organization where the employer-employee relationship does not, in fact, exist or where the services rendered to such organizations are on a voluntary basis;
•	seasonal employees of an employer obtaining and holding a valid certificate issued annually by the Director of the Labor Relations Division of the Workforce Solutions Department; and 
•	certain categories of agricultural employees.

Section 50-4-23 NMSA 1978 currently allows wages lower than minimum wage for certain individuals employed in agriculture who have impairments such as physical or mental deficiencies or injuries.

 

Amendments:

 Amended February 13, 2025 in HLVMC

HLVMCa/HB246: The House Labor, Veterans and Military Affairs Committee amendment to House Bill 246 makes the following changes:

1. On page 3, line 8, after the semicolon, insert "or"

2. On page 3, line 12, strike "; or" and insert in lieu thereof a period. 

3. On page 4, strike line 9 in its entirety. 4. On page 4, strike lines 18 through 22 in their entirety.