New Mexico Overtime Laws: Understanding the Rules and Regulations

Overtime is one of the most contentious issues in the American workforce. Employees expect to be compensated for the extra time they put in, while employers seek to balance payroll expenses and productivity. In the state of New Mexico, overtime laws are in place to regulate hours and compensation to ensure fairness for both employees and employers. This guide provides an overview of New Mexico overtime laws, and what employees and employers need to know to stay compliant.

What is Overtime?

Overtime refers to the additional hours worked by an employee beyond the standard 40 hours per workweek. Under federal law, employers are required to pay eligible employees 1.5 times their regular rate of pay for every hour worked over 40 hours in a workweek. Some state laws may require overtime pay for work done over 8 hours in a day or require double time pay for work on weekends or holidays.

New Mexico Overtime Laws: Basic Rules

New Mexico labor laws establish that most employees must receive overtime pay. However, certain employees and industries may be exempt. Employees who are exempt from overtime pay may include:

• Salaried managers, executives, and administrative employees who meet certain salary and job duties requirements
• Agriculture and farm workers
• Sales employees who work on commissions

According to New Mexico labor laws, eligible non-exempt employees must be paid overtime pay for every hour worked over 40 hours in a workweek. Overtime pay should be 1.5 times the employee’s regular rate of pay. The law does not require double time pay for work done on weekends or holidays.

New Mexico Minimum Wage and Overtime Pay

New Mexico has a state minimum wage law that requires employers to pay employees a minimum hourly wage for their work. The state’s minimum wage is $10.50 per hour as of January 1, 2021. Employers must comply with both federal and state minimum wage laws. If an employee is covered by both state and federal minimum wage laws, the employer must pay the higher of the two minimum wages.

For overtime work, employees must receive 1.5 times their regular rate of pay for every hour worked over 40 hours in a workweek. The regular rate of pay includes all earnings paid to the employee, such as hourly rate, salary, piece-rate, commissions, and bonuses.

Calculating Overtime Pay

Calculation of overtime pay in New Mexico is similar to the federal requirement. An eligible employee should receive 1.5 times their regular rate of pay for each hour worked over 40 hours in a workweek. For instance, if an employee earns $15 per hour, their overtime pay will be $22.5 per hour (1.5 times their regular rate). If they work 50 hours in a workweek, they will earn their regular wages of $750 ($15 x 50) plus overtime pay of $168.75 ($22.50 x 10 hours).

If an employee earns a weekly salary, their salary should be divided by the number of hours worked in the workweek to get their hourly rate of pay. This hourly rate should then be used to calculate their overtime pay.

Record-Keeping

Employers must keep accurate records of the hours worked by all employees. Records must include the hours worked every day in the workweek, total hours worked in the workweek, and the total pay for the workweek, including overtime pay. Employers should keep these records for at least three years.

Enforcement

The New Mexico Department of Workforce Solutions Wage and Hour Bureau is responsible for enforcing the state’s wage and hour laws. Employees who believe their rights have been infringed may file a complaint with the Wage and Hour Bureau. The department has the power to investigate a complaint, issue back wages and penalties, and bring legal action against employers who fail to comply with the law.

Penalties for Violation

Employers found to be in violation of New Mexico’s overtime laws may face penalties such as back pay for unpaid overtime, fines, interest, and even court costs. Deliberate and repeated violations may result in more severe penalties.

Conclusion

New Mexico’s overtime laws are in place to protect employees’ rights while ensuring fairness for employers. Employers must ensure that their eligible employees receive the required overtime pay for work done beyond 40 hours in a workweek. Failure to comply with the law may result in costly penalties and legal action. Employees who feel that their overtime rights have been infringed may file a complaint with the Wage and Hour Bureau to ensure that their rights are upheld.

In conclusion, the New Mexico overtime laws aim to guarantee fair treatment for both employees and employers. It is advisable for both employees and employers to familiarize themselves with the laws and regulations to ensure that they stay compliant. By following the laws and regulations, employers can avoid facing penalties, while employees can ensure that they receive fair compensation for any overtime work they undertake.

Quick Guide to New Mexico’s Overtime Laws

New Mexico Overtime Laws

New Mexico’s overtime laws are provided under the state’s legislature, and most employees are covered by these NM overtime laws unless their employment falls under the Fair Labor Standards Act.

Under §50-4-22(d) of the statutes on NM overtime laws, an employee must work at least 40 hours before receiving one and one-half (1 ½) times the hourly wage.  More analysis of New Mexico’s overtime laws is discussed throughout this article as well.

You will find information in this article about New Mexico overtime laws on overtime minimum wage, wage claims for violations of overtime laws from an employer, exemptions under the FLSA, and more.

What is the minimum overtime wage under NM Overtime Laws?

According to NM overtime laws on minimum wage, the current overtime minimum wage is $11.25 exactly.  If you have worked more than 40 hours a week, unless you’re in a certain profession, your employer is required to pay you overtime rates according to New Mexico overtime laws.

If you believe your employer has violated New Mexico’s overtime laws, you will find information about filing a claim at the end of this article.

Are there exemptions under New Mexico Overtime Laws?

If an employee is covered by the Fair Labor Standards Act, they may receive an overtime minimum wage of $10.88 according to New Mexico’s overtime laws.  NM overtime laws provided by the following document under the Department of Workforce Solutions also provides exemptions for minimum wage and New Mexico overtime laws unless they fall under the FairPay Act and make less than $23,660 per year:

The exemptions for minimum wage under New Mexico’s overtime laws are listed below:

• domestic employee in a private home

• a bona fide executive, administrative or professional person

• an individual employed by the United States

• voluntary services for educational, charitable, religious or nonprofit services

• salespersons or similar employees in NM that receive mainly commission

• students working after school hours or on vacation

• registered apprentices and learners

• persons 18 or under that are not registered in some type of schooling

• persons 18 or under that have not graduated from secondary school

• G.I. bill trainees while under training

• certain seasonal employees

• certain employees employed in agriculture in New Mexico

• an employee in handling, drying, packing, packaging, processing, freezing or canning of any type of Agriculture or horticultural commodity

• employees of charitable, religious or nonprofit organizations who reside on the premises of the organizations

There may be other exemptions under New Mexico’s overtime laws as well.  Contact the Department of Workforce Solutions if you have any questions about NM overtime laws.

Filing a Wage Claim for Violation of New Mexico Overtime Laws

In order to file a wage claim for unpaid wages set by NM overtime laws, and employee should visit the following website.

You will find forms required by New Mexico’s overtime laws, and depending on your location, you may have to file the form to a different address.  The mailing address is located on the form for your area, and if your claim for violation of NM overtime laws is approved, there will be a hearing and legal action if the employer refuses to pay certain wages.

Before filing a claim for a violation of New Mexico overtime laws, an employee is always encouraged to try and settle the dispute with the employer before taking legal action, and rights under the Public Employee Bargaining Act allow the employee to bargain for higher wages and benefits.