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Nobody ever said running a business was a walk in the park. As an employer, you have a lot of balls in the air, and compliance is just one of them. One really, really important one that, if dropped, could cost you a whole lot of money.
In addition to federal regulations, each state has its own share of employment-related laws that business owners need to be aware of. Here, we’re highlighting some of these key state-specific requirements and offering guidance to help you keep up.
Bear in mind, this list is not comprehensive, and there may be local or industry-specific employment requirements that your business needs to comply with. It’s best to consult with legal counsel to ensure compliance with all applicable laws, as Justworks does not provide legal advice.
Payroll Tax Accounts
Since Justworks reports New Mexico unemployment taxes on behalf of customers who utilize our PEO services, employers will need to close their New Mexico unemployment and withholding accounts prior to joining the Justworks platform. Linked here are the steps you’ll need to take: New Mexico - State Unemployment Insurance.
Recruiting & Hiring Practices
New Mexico employers should familiarize themselves with specific required actions and certain key documents for hiring employees, such as registering with New Mexico’s New Hire Directory, displaying required workplace postings, and obtaining workers’ compensation coverage if it applies to your business.
Mineral*: New Mexico Applicant and Employee Screening
Ban-the-Box
A criminal conviction history can be a reason to deny employment. However, New Mexico’s “ban-the-box” law generally prohibits employers of four or more employees from asking about arrests or criminal convictions on the application. Consideration of criminal conviction history is only allowable after you have reviewed the application and are discussing employment with the applicant. Violations are handled under New Mexico’s Human Rights Act.
New Mexico Legislature: Criminal Offender Employment Act
New Mexico Statutes [Justia]: Ban the Box - Private Employers
Independent Contractors
When classifying workers as employees or independent contractors, there are a few things to consider. This includes the different legal tests that apply under various federal and New Mexico employment laws, and potential penalties and other liabilities for misclassifying employees as independent contractors. Certain state laws apply tests that are more stringent than the guidance provided by federal agencies, such as the IRS and Department of Labor, to apply in conjunction with federal laws.
You can read our general Help Center article on contractors, and view information on the particular tests that apply in New Mexico, including the more stringent “ABC” test, at the links below.
New Mexico Department of Workforce Solution: Independent Contractors
Mineral*: New Mexico Independent Contractors
Pay Requirements
Minimum Wage & Overtime
New Mexico’s rules on overtime and minimum wage can be found here. New Mexico’s state-wide minimum wage requirements exceed those at the federal level.
Some New Mexico cities and counties, listed below, may have their own wage requirements that are different from and may exceed New Mexico’s state-wide minimum wage. If more than one wage law applies, employers must comply with the provisions of each law that most benefit the employee and employees must be paid the higher of the two competing minimum wages. Minimum wages requirements are regularly changed, so this list may not cover all localities.
Lactation Breaks
New Mexico employers with four or more employees must provide a clean, private place (not a bathroom) for use by lactating mothers. .
New Mexico Department of Health (NMDOH): Breastfeeding Friendly Workplace Initiative
Mineral*: New Mexico Lactation Accommodations
Rest Breaks
While rest, meal, or coffee breaks are not required by New Mexico law, any break periods given must be paid if they are shorter than 30 minutes.
NM Department of Workforce Solutions: Labor Relations FAQs
Maximum Daily Hours
New Mexico generally limits work hours to 16 in any 24-hour day, but limits hotel and restaurant workers to 10 hours a day, except in an emergency. This is more restrictive than federal law.
Leave
Paid Sick and Other Leave Requirements
Employers must provide paid sick leave to employees who work in New Mexico under the Healthy Workplaces Act. Employees accrue one hour of paid sick leave for every 30 hours worked. Employers also have the option of frontloading 64 hours of sick leave as a lump sum on January 1st of each year.
Certain employers in Bernalillo County, under the Employee Wellness Act, may also be subject to additional paid leave laws. Notably, leave under this act can be used for any reason (i.e. not just sick or safe reasons). If more than one leave law applies, employers must comply with the provisions of each law that most benefit the employee.
New Mexico Department of Workforce Solutions: Labor Information - New Mexico Paid Sick Leave
Bernalillo County: Employee Wellness Act Guidance - FAQ
Mineral*: New Mexico Sick Leave
Voting Leave
Employees are eligible for two hours of paid leave to vote if the polls are not open at least two consecutive hours before or three consecutive hours after the employee’s shift. No advance noticed is required. However, employers can decide when an employee takes their voting leave.
Mineral*: New Mexico Voting Leave
Domestic Violence Leave
New Mexico’s Promoting Financial Independence for Victims of Domestic Abuse Act requires all employers to grant an employee domestic abuse leave. Leave can be paid or unpaid and be up to 14 days of intermittent time off for up to 8 hours in a day.
Mineral*: New Mexico Victim Leave
Harassment & Discrimination
In addition to protections under Federal law, New Mexico law prohibits employment discrimination based on any protected characteristic or class of employees covered under New Mexico’s anti-discrimination laws. The protections are broader than those provided for by federal law and, depending on the number of your employees, may include race, age (40 or older), religion, color, national origin, ancestry, sex, sexual orientation, gender identity, pregnancy, childbirth or condition related to pregnancy or childbirth, physical or mental handicap or serious medical condition, or spousal affiliation.
New Mexico Department of Workforce Solutions: New Mexico’s Human Rights Act
Separation
At-Will Employment
Generally, employment may be terminated for any reason and at any time, as long as the reason is not unlawful and no employment contract requires otherwise. Two exceptions to New Mexico’s general at-will rule are discharge against a public policy (retaliatory discharge) or an implied contract term limiting discharge.
Separation Pay
Although New Mexico does not require an employer to provide paid vacation, if vacation is owed under the employer’s voluntary policy, it is deemed wages and must be paid along with other wages due at discharge.
When an employer discharges an employee, payment of undisputed wages is required immediately upon request, or within 5 days of termination, whichever is sooner. All other wages and compensation are due within 10 days of discharge.
Mineral*: New Mexico Separation
Business Closings and Layoffs
The Federal WARN Act imposes certain notice and other obligations on covered businesses before conducting large-scale business closures, layoffs, or relocations. For more information, visit the links below.
U.S. Department of Labor: Worker Adjustment and Retraining Notification (WARN) Act Advisor
New Mexico: Department of Workforce Solutions
Mineral*: New Mexico Layoffs
Notes
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Disclaimer
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.