NM · state labor law, 2026
New Mexico labor laws: minimum wage, overtime, leave, final pay and breaks
A modest state rate, much higher city rates, and a sick leave law that covers every private employer from the first worker.
New Mexico and federal rules checked on official sources on · Checked by Radif Partners · How we calculate
- Minimum wage now
- $12.00/h
- statewide
- Next change
- none announced
- checked October 11, 2026
- Tipped cash wage
- $3.00/h
- tips must make up the rest
- Overtime
- 40 h/week
- state law
- Paid sick leave
- 1 h per 30 h
- cap 64 h a year
- Paid family leave
- no program
- FMLA is unpaid
New Mexico's minimum wage is $12.00 an hour, unchanged since January 1, 2023, with a tipped cash wage of $3.00. The real variation is local: the City of Santa Fe and unincorporated Santa Fe County pay $15.40 since March 1, 2026, Las Cruces pays $13.01, and Albuquerque and Santa Fe County set higher tipped wages than the state. Every private employer, whatever its size, must provide paid sick leave under the Healthy Workplaces Act: one hour for every 30 hours worked, up to 64 hours a year, or the full amount at once. Overtime is time and a half after 40 hours a week, and New Mexico does not allow comp time in place of overtime pay in the private sector. A dismissed worker must be paid within 5 days, a worker who quits on the next payday. There is no paid family leave program yet.
Gross pay for this week in New Mexico
$480
Time and a half after 40 hours in a week
| Minimum wage in New Mexico now | $12 an hour |
| Your rate against it | At or above the minimum |
| Overtime: none this week | $0 |
| Paid sick leave earned in a year | 64 hours (cap reached) |
| Breaks owed in a 8-hour shift | None required for adults |
| Final paycheck if fired | within 5 days of discharge (10 days for task, piece or commission wages) |
| Unused vacation at the end | Paid out if the employer policy or contract says so |
| Paid family leave | No state program |
40 hours a week at $12. State rule applied. Minimum wage, overtime and leave rules have exceptions by employer size and industry. How this is calculated.
City rates far above the state
New Mexico lets cities and counties set their own minimum wage, and the two largest local rates sit well above $12.00. Santa Fe ties its living wage to a formula, which produced $15.40 from March 1, 2026, and the city has already scheduled a much larger step on January 1, 2027. Las Cruces pays $13.01. Albuquerque's own ordinance figure has fallen below the state rate, so the state $12.00 applies there, but the city keeps a tipped cash wage well above the state's $3.00. If you work in more than one place, each local rate applies to the hours worked inside its limits.
City minimum wage against the state rate
Flagstaff (AZ), per hour
$18.35
| Arizona state rate | $15.15 |
| Difference per hour | $3.20 |
| Difference over a year | $6,656 |
| Year at the city rate | $38,168 |
Sick leave from the first employee
The Healthy Workplaces Act has applied since July 1, 2022, to every private employer, including businesses with a single worker. A full-time employee earning one hour per 30 reaches the 64-hour annual limit before the year is out (the raw accrual would be about 69 hours). Employers may instead give all 64 hours at the start of the year.
Tipped workers: three different cash wages
The state lets restaurants pay tipped staff a cash wage of $3.00 an hour, provided tips bring every hour to at least $12.00 over the workweek. Several local ordinances set a higher cash wage for tipped work, Albuquerque, Las Cruces and Santa Fe County among them, and in those places the local figure applies. A server who averages less in tips than the gap between the cash wage and the minimum is owed a top-up from the employer for that pay period.
Do your tips cover the minimum wage?
Employer top-up owed per hour
$5.00
| Cash wage | $3.00 |
| Cash wage + tips | $7.00 |
| Minimum wage in New Mexico | $12.00 |
| Top-up over a 30-hour week | $150 |
Sick leave you earn in a year
Hours earned in a year
52
| Rate | 1 hour per 30 hours worked |
| Cap (typical employer) | 64 hours |
| Weeks to earn one 8-hour day | 8.0 |
Overtime without comp time
Private employers must pay time and a half in cash for hours over 40 in a week; offering time off later instead of overtime pay is not allowed, and an employee cannot waive the premium. Salaried employees are exempt only under the federal duties tests and the federal salary level of $684 a week.
Final pay
An employer that discharges a worker has 5 days to pay all wages, or 10 days when pay is based on tasks, pieces or commission. A dismissal on October 5, 2026 means pay by October 10, 2026. Someone who quits is paid on the next regular payday. No statute requires vacation, holiday or severance pay, so the employer's policy decides whether unused vacation is paid. New Mexico is not a right-to-work state, and employment is at will.
New Mexico employment rules at a glance, 2026
Minimum wage schedule
| From | Who it covers | Rate | Note |
|---|---|---|---|
| January 1, 2023 | Statewide | $12.00 | Unchanged throughout 2026; higher local rates apply in Santa Fe city and county and Las Cruces |
Workers covered by both laws get the higher rate. No separate wage for students or minors. Read the New Mexico rule.
Cities and counties with their own minimum wage
| Place | Rate | Since | Source |
|---|---|---|---|
| City of Santa Fe | $15.40 | March 1, 2026 | ordinance page |
| Santa Fe County (unincorporated) | $15.40 | March 1, 2026 | ordinance page |
| Las Cruces | $13.01 | January 1, 2026 | ordinance page |
| Albuquerque | $12.00 | January 1, 2026 | ordinance page |
Overtime
Time and a half after 40 hours in a week. The salary test for exempt employees is the federal $684 a week. Compensatory time instead of overtime pay is not allowed; employees cannot waive time and a half. source
Sick leave and family leave
Paid sick leave: 1 hour for every 30 hours worked (or 64 hours front-loaded) (All private employers: up to 64 hours per year (Healthy Workplaces Act).), all private employers. Healthy Workplaces Act of 2021. source
No state paid family leave insurance: the federal FMLA gives eligible workers up to 12 weeks of unpaid, job-protected leave.
Final paycheck and unused vacation
Fired or laid off: within 5 days of discharge (10 days for task, piece or commission wages). Quitting: on the next regular payday. Vacation: No statute requires holiday, sick or severance pay; vacation payout follows employer policy.. source
Meal and rest breaks
No meal break is required for adults by state law. No paid rest break is required for adults. source
Unions and dismissal
New Mexico has no right-to-work law, so a union contract may require a fee from the workers it covers. Employment is at will: either side may end it at any time, except for an illegal reason such as discrimination or retaliation, or against a contract.
Also worth knowing in New Mexico
- Santa Fe's citywide living wage jumps to $17.50 an hour on January 1, 2027, then follows a formula blending inflation and local rents from 2028. source
- Every private employer, regardless of size, must provide up to 64 hours of paid sick leave a year. source
- No state paid family leave program exists yet: DWS coordinated a task force whose recommendations went to the Legislature in October 2022. source