Frequently Asked Questions
Labor & Industrial Division
This web page in simple language, answers some of the most frequently asked questions relating to payment of wages, hours of employment, and other subjects of mutual interest. This information should not be construed as an official interpretation of the complete laws. This is merely a general explanation of what the laws provide. For answers to specific questions contact the local Labor and Industrial Division office in your area.
Q. What are the new overtime laws?
A. Under the new FairPay rules, workers earning less than $23,660 per year — or $455 per week — are guaranteed overtime protection. This will strengthen overtime rights for 6.7 million American workers, including 1.3 million low-wage workers who were denied overtime under the old rules. To learn more about the new regulations that take effect on August 23, 2004 visit the Federal Department of Labor's Website at http://www.dol.gov/esa/regs/compliance/whd/fairpay/main.htm
Q. What is the minimum wage?
A. The State minimum wage is $7.50 per hour effective January 1, 2009. More information on minimum wage can be found here.
Exemptions from both Minimum Wage and Overtime Pay
Executive, administrative, and professional employees (including teachers and academic administrative personnel in elementary and secondary schools), outside sales persons, and persons in certain computer-related occupations.
An employer of workers engaged in agriculture is exempt from overtime provisions. "Agriculture is exempt from overtime provisions. "Agriculture" is defined in Section 203 of the Fair Labor Standards Act.
Further information on the federal minimum wage law
Q. What is the NM State minimum wage if the employee receives tips?
A. If the employee regularly and customarily receives $30.00 or more a month in tips, an employers cash payment to that employee must be at least $2.13 per hour and the employer may consider tips as making up the difference of the $7.50 per hour minimum wage.
Q. Does an employer have to give lunch breaks, coffee breaks or rest periods?
A. No. There is no statute that requires an employer to provide such breaks; however, deductions cannot be made from wages if less than 30 minutes is allowed for the breaks.
Q. Can an employer require an employee to work more than 8 hours a day and/or more than 40 hours a week?
A. Yes. An employer can require an employee to work overtime but must pay the rate of time-and-a-half the regular rate of the employee's pay for over 40 hours in a seven-day period.
Q. Does an employer have to pay Holiday, Vacation, Sick or Severance pay?
A. No. There is no statute that requires an employer to pay such wages. The Department will enforce the Employers policy manual on vacation as per case law.
Q. Can an employer give compensatory time off rather than pay overtime?
A. No.
Q. Can an employer pay young people, under the age of 18, less than the minimum wage?
A. Yes. Students regularly enrolled in a primary or secondary school working after school hours or on vacation; Persons 18 or younger who are not students in a primary, secondary, vocational, or training school; Persons 18 or younger who are not graduates of a secondary school.
Q. How long do employers have to keep their records?
A. Every employer must keep true and accurate records of hours worked and wages paid for each employee. These records must be kept on file for at least one year after the entry has been made.
Q. Can an employer cut an employee's wage or salary?
A. Yes. The employer must advise the employee of the new lower rate before the hours are worked.
Q. If an employee wants to work overtime and will accept straight time pay, can he/she waive his/her right to time-and-a-half.
A. No
Q. Is an employee required to give two weeks notice before they quit?
A. No. There is no statue that requires an employee to give any notice.
Q. When does an employer have to pay final wages to a terminated employee?
A. If the wages owed are a fixed and definite amount, the employer shall pay such wages to the employee within 5 days of such discharge. Task, piece, commission wages must be paid within 10 days of such discharge.
Q. When do I have to be paid if I quit?
A. On the next regularly scheduled payday.
Q. Does an employer have to pay for all hours worked or services rendered?
A. Yes.
Q. Is an employer required by law to have a time clock?
A. No. There is no statute that requires an employer to have a time clock. However, an employer must keep true and accurate records of hours worked.
Q. Do employees have to sign their time cards?
A. If it is a company policy, yes, although there is no statute requiring an employee to sign time cards.
Q. Does an employer have to pay overtime compensation to salaried employees?
A. Yes, if the employee is not exempt from the overtime provisions.
Exemptions from both Minimum Wage and Overtime Pay
Executive, administrative, and professional employees (including teachers and academic administrative personnel in elementary and secondary schools), outside sales persons, and persons in certain computer-related occupations.
An employer of workers engaged in agriculture is exempt from overtime provisions. "Agriculture is exempt from overtime provisions. "Agriculture" is defined in Section 203 of the Fair Labor Standards Act.
Q. What can the employer deduct from wages?
A. No deduction can be made except appropriate state, federal and social security taxes without a written authorization from the employee or a court order. In all cases, the employee must receive the minimum wage.
Q. Which employees are exempt from overtime?
A. Employees engaged in the ginning of cotton, agriculture, professional, administrative, executive and outside sales, as determined by the Fair Labor Standards Act.
Q. What are the laws concerning employees who quit their job?
A. If an employee quits his job, unless he has a written contract for a definite period, the wages are due on the next succeeding payday.
Q. How often must an employer pay?
A. An Employer must pay at least once every 16 days and within 10 days of the close of the pay period. Employers may pay professional, administrative, or executive employees or employees employed in the capacity of an outside salesman one time per month. Those employees whose salaries are subject to provisions of collective bargaining agreements are excluded from the above provisions.
Q. What can I do to receive unpaid wages?
A. File a Wage Claim form with the Wage and Hour Bureau. Click here for more information.
Q. What is the minimum age a student may work?
A. Fourteen years of age in any occupation during the hours school is in session.
Q. Are work permit certificates required for youths?
A. Work permit certificates are required for students under 16 years of age at all times. School superintendents, principals, designated issuing school officers and Representatives of the Labor and Industrial Division issue work permit certificates.
Q. Are there prohibited occupations for students under 16? Under 18?
A. Yes, there are prohibited occupations for minors ages 14 and 15, and there are hazardous occupations for minors age 16 and 17.
PROHIBITED OCCUPATIONS FOR MINORS AGES 14 and 15 Occupations involving; mining, manufacturing, processing including laundry and dry cleaning, duties is workrooms, public messenger service, hoisting apparatus' or any power driven machinery, power driven mowers/cutters, the use of auto pits, racks lifting apparatus'. Occupations in connection with; transportation or persons or property, warehousing/storage, communications, public utilities, and construction. Occupations in retail food and gas service establishments; work in boiler/engine rooms, maintenance/repair of machines and equipment, outside window washing, cooking and baking, operating, setting up, adjusting, cleaning, oiling or repairing power-driven food slicers, grinders choppers and mixers, work in freezers/coolers, loading and unloading goods.
HAZARDOUS OCCUPATIONS FOR MINORS AGE 16 and 17 Occupations involving or in connection with; explosives, motor-vehicle drivers, mining, logging including sawmill, power-driven wood working machinery, radioactive substances, hoisting apparatus', elevators, cranes derricks, hoists, and high-lift trucks, metal forming/punching/shearing machines, slaughtering/meat packing, power driven bakery machines, paper product machines, manufacture of brick, tile and kindred products, circular saws, band saws, and guillotine shears, wrecking, demolition, and ship breaking, roofing occupations and excavation operations.
Q. What are the hours/time standards for students 14 and 15 years of age?
A. Students 14 and 15 years of age may NOT be employed:
- during school hours, except as provided for in work experience and career exploration programs.
- before 7:00 a.m. or after 7:00 p.m. except from June 1 through Labor Day when evening hours are extended to 9:00 p.m.
- more than 3 hours a day on a school day.
- more than 18 hours a week in a school week.
- more than 8 hours a day on a non-school day.
Q. What are the hours/times standards for students 16 years of age and over?
A. There are no hour or time restrictions for students 16 years of age or over.
Q. What is apprenticeship?
A. Apprenticeship is a training method where a person works under a written agreement with or for master craftsmen in a craft of trade for a specified length of time in return for instruction. Work is required in the craft or trade along with classroom training. The apprentice is paid for the work in that craft or trade, but the required classroom training is provided to him or her for free. Pay usually starts at about half the journeyman's rate with full fringe benefit rates added. Most programs provide about 5% increases as the apprentice moves into the next period of training. Each training period lasts about six months (when full time employment is available). At the end of training, the apprentice usually takes an exam for a license in that trade or craft.
Q. What are the basic requirements for entry into most Apprenticeship Programs?
A. Most programs require applicants to be at least 18 years of age and have proof of high school education by diploma or equivalency certificate. If you are interested in apprenticeship programs call 222-4672 or 222-4674.
Q. What kind of work does the "Public Works Minimum Wage Act" cover?
A. It covers all public works construction, alteration, demolition or repair projects when the project cost is $60,000 or more, and when the state or any political subdivision is a party.
Q. What wages are applicable on Public Works projects?
A. The Labor and Industrial Division issues the minimum wage rate for each public works project which should be posted in a prominent place at the job site. The rates on a public works project are higher than the regular minimum wage and vary according to the job classification. The employee must be paid the prevailing wage based on the type of work the employee is performing.
Q. When do I get overtime on a Public Works project?
A. Overtime is after 40 hours in a seven-day week.
