The bill amends the Minimum Wage Act in New Mexico to prohibit employers from deducting credit card fees or costs from employee tips. It establishes that employers who allow patrons to pay tips via credit card must pay employees the full amount of the gratuity indicated on the credit card slip, without any deductions for processing fees. Additionally, the bill clarifies that all tips received by employees must be retained by them, although pooling of tips among wait staff is permitted.

Furthermore, the bill updates the minimum wage structure for employees who customarily receive tips, increasing the minimum hourly wage from $2.80 to $3.00 starting January 1, 2023. It also reinforces that tips can be considered part of wages, but the total of tips and the employer's cash wage must not fall below the minimum wage rate. The bill declares an emergency, indicating that it is necessary for public peace, health, and safety for the act to take effect immediately.

Statutes affected:
introduced version: 50-4-22