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Throughout the country, state legislators are deciding what a fair minimum wage should be in their state. With so many laws changing, it can be confusing to follow what’s happening closer to home.
We’ve got you covered on what’s happening next for the New Mexico minimum wage, and what you need to do as a small business owner to be prepared.
What is the minimum wage in New Mexico?
The New Mexico minimum wage is increasing to $12 per hour for non-tipped employees and $3 per hour for tipped employees in 2023.
However, some cities and counties within the state have higher local minimum wages. Your business is required to pay its workers whichever rate is higher, state, or local. For instance, the minimum wage in Santa Fe County is $12.95. For tipped employees, the minimum wage is $3.88. Starting Jan. 1, 2023, the minimum wage for tipped employees will be $7.20 in Albuquerque, and $4.78 in Las Cruces.
How should small business owners prepare for changes to the minimum wage?
Knowing the schedule of New Mexico’s minimum wage increase can help you plan accordingly. However, there are other steps you can take to help offset any cost associated with the rising wages.
- Do an audit: Take time to analyze your business spending to see where you could cut costs and save. And because time is money, make sure you’re utilizing technology that can help you be more efficient. Using automatic payroll is one easy option you can implement right away. Square Payroll software has loads of custom payroll features all at small business pricing.
- Minimize turnover: Hiring and training staff can get expensive, so you may want to focus on minimizing staff turnover. Hiring the right people and successfully onboarding them is important. Also, think of ways to retrain your staff to ensure performance is high and staff members feel equipped with the skills to do their job.
- Stay in compliance:To protect your business and pay your employees fairly, find an accountant who is familiar with your local laws and can help guide you on what’s required where your business and employees are.