New Mexico Tipped Overtime & Living Wage Laws
New Mexico state minimum wage is $12.00/hr with a tipped employee cash wage of $3.00/hr. Santa Fe enforces a local living wage of $14.60/hr, with a tipped cash wage of $4.38/hr. Overtime for tipped workers must be calculated at 1.5 times the full applicable regular rate or minimum wage ($12.00 or $14.60), not the lower tipped cash wage. Tips cannot be used to pay overtime premiums. For details, contact the New Mexico Department of Workforce Solutions (DWS).
Frequently Asked Questions
What is the minimum wage in New Mexico for 2026?
For 2026, New Mexico's state minimum wage is $12.00 per hour. The cash minimum wage for tipped employees is $3.00 per hour, meaning employers can claim a maximum tip credit of $9.00 per hour.
Does Santa Fe have a different minimum wage?
Yes, Santa Fe has a local living wage ordinance. For 2026, the Santa Fe minimum wage is $14.60 per hour, and the tipped cash minimum wage is $4.38 per hour.
How is overtime calculated for tipped employees in New Mexico?
Overtime for tipped employees in New Mexico must be calculated based on the full applicable minimum wage (either $12.00/hr statewide or $14.60/hr in Santa Fe) rather than the lower cash tipped wage. Overtime is paid at 1.5 times the full regular rate, with the tip credit subtracted afterward.