labor lawAdivision of labor law center

On January 1, 2008 the New Mexico state minimum wage will increase by 65 cents from $5.85 per hour to $6.50 per hour. This is the second increase in less than 6 months for minimum wage workers in New Mexico. The state minimum wage increases with the federal rate, so on July 24, 2007 the rate went from $5.15 per hour to $5.85 per hour.

That’s a total increase of $1.35 per hour since July for the state’s minimum wage workers.

The state wage for tipped employees remains just $2.125 per hour – one of the lowest rates in the nation. The federal rate for tipped employees is $2.13 per hour, while other states require tipped employees to be paid anywhere from $2.23 to $8.07 per hour.

New Mexico law does permit workers under the age of 18 who are training, or who have not graduated from high school, to be paid less than the state minimum wage.

Under the same statute, most employees who are fired must receive their final wages within 5 days. If an employee does piece work or works on commission, the employer has 10 days after termination to pay him or her. However, workers who resign can be paid on the next regular payday.

Within the past few months, three states have increased their minimum wages. New Hampshire’s minimum wage went to $6.50 per hour, while the Nevada minimum wage rose to $6.33. Maine’s minimum wage was also increased, to $7.00 per hour.

New Mexico is just the most recent in a series of states that have announced minimum wage hikes in 2008. Other states that will introduce cost-of-living increases to the minimum wage in January include Delaware, Oregon, Florida, Iowa, Massachusetts, California, Washington, and Vermont. Florida’s increase will result in the lowest rate at $6.79 per hour, while both Massachusetts and California will increase the state rate to $8.00.  Washington’s increase to $8.07 will result in the highest minimum wage in the nation for 2008.

While the minimum wage may increase, overtime laws in many states remain the same. Federal law states that any employee who works more than 40 hours a week is entitled to overtime pay. The rate of pay is usually 1.5 times the hourly rate and is referred to as “time-and-a-half” or “overtime.” Most workers in the country are covered under federal law, plus several states have overtime laws.

Michigan, Massachusetts, Nebraska and several other states simply copy the federal requirement in that more than 40 hours a week qualifies a worker to receive overtime pay. In Kansas, the magic number for earning overtime is 46 hours a week, and Minnesota law demands overtime for weekly hours greater than 48.

For every company with four or more workers, Nebraska applies the both the federal minimum wage law and the federal overtime law.

Colorado workers receive overtime after 12 hours per day, or 40 hours a week. Restaurant and hotel employers in Connecticut must pay overtime to any employee who works seven days in a row. Workers in other fields do not earn overtime on the seventh day. Employees in Kentucky earn overtime pay more than 40 hours. These employees also earn overtime for seventh consecutive day of work, no matter how many hours they worked on the other six.

As is illustrated, state overtime laws vary widely across the country. State laws regarding minimum wage for employees who earn tips vary nationwide, too.

The federal minimum wage rate for tipped employees is $2.13 per hour. Several states, including Nebraska and Indiana, follow the federal rate of $2.13. Wisconsin, Massachusetts and North Carolina offer higher rates of $2.33, $2.63 and $2.43, respectively.

Kansas, at $1.59 per hour, has the lowest minimum wage for tipped workers.

Not all states allow for tips when calculating rates for minimum wage. Hawaii assumes a tip rate of 25 cents per hour, so employers legally have to pay only $7.00, instead of the state minimum of $7.25. Washington doesn’t allow or tips at all. Companies must pay tipped employees that same as non-tipped employees, which January 1, 2008 will be $8.07.

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