New Mexico employment laws are a mix of federal regulations and carefully tailored state-level protections. With established rules around paid sick leave, wage equity, and workplace discrimination, the state gives employers clear standards to follow while reinforcing a supportive environment for workers.
When it comes to talent and workforce management, New Mexico-based employers need to comply with the following state employment laws:
The below information was last updated July 21, 2025. It is not intended as legal advice. Also, unless otherwise noted below, the following laws predominantly apply to the private sector.
A subset of employment law, labor law focuses on the relationships between employers, employees, and labor unions, particularly in the context of collective bargaining and workplace rights.
Central to US labor law is the National Labor Relations Act (NLRA), which protects employees’ rights to organize, join unions, and negotiate working conditions while restricting unfair labor practices. Still, states can enact additional laws, such as Right-to-Work statutes, that influence union membership and dues requirements.
Right-to-work states prohibit employers from requiring union membership or dues as a condition of employment (a.k.a. union security agreements).
New Mexico currently has no right-to-work laws or regulations. Although, under section 14(b) of the National Labor Relations Act (NLRA), New Mexico can pass a right-to-work law in the future if it chooses.
Employment law governs the individual rights of employees and their professional relationship with their employers, such as working hours, fair wages, anti-discrimination protections, and workplace safety.
| New Mexico Minimum Wage |
The state of New Mexico uses its own minimum wage rate of $12.00, including a tipped minimum wage rate of $3.00 for employees who earn tips with their base pay. Note: New Mexico also has certain local minimum wage laws and provisions. |
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According to state law, overtime pay in New Mexico is calculated at 1.5 times the employee’s regular hourly wage for time worked over 40 hours in a workweek. |
| New Mexico Pay Equity Law |
Under the state’s Fair Pay For Women Act, public and private employers in New Mexico must not discriminate between employees on the basis of sex by paying wages at a rate less than the rate the employer pays wages to employees of the opposite sex in the establishment for equal work on jobs the performance of which requires equal skill, effort, and responsibility and that are performed under similar working conditions, except where the payment is made pursuant to a:
Furthermore, employers shall not reduce the wages of an employee to comply with this act. |
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New Mexico currently has no pay transparency laws or regulations. |
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In New Mexico, employees who voluntarily resign from a job must receive their final paycheck by the next regular payday. However, if an employee is involuntarily terminated, they must receive their final paycheck within five days, or 10 days if wages are paid by piecework or commission. |
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New Mexico currently requires employers to pay out any accrued, unused paid leave at termination. It does not, however, have any regulations regarding the use of "use-it-or-lose-it" policies. |
| New Mexico Paid Sick Leave (PSL) | New Mexico currently requires employers to provide employees with 64 hours of paid, protected sick leave under its Healthy Workplaces Act. Eligible employees accrue one hour of leave for every 30 hours worked and are permitted to use the leave for various reasons. |
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New Mexico Paid Family and Medical Leave (PFML) |
New Mexico currently has no PFML laws or regulations. Although, employers with 50 or more employees must still comply with the federal Family and Medical Leave Act (FMLA), which provides eligible employees up to 12 weeks of unpaid leave every 12 months for various reasons. |
| New Mexico Maternity Leave | New Mexico doesn't have a maternity leave law, as this type of leave is an employer-provided benefit. Since the state also doesn’t have a mandated PFML program, employees must instead use FMLA leave or another type of employer-provided leave. |
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New Mexico Voting Leave Law |
Under §1-12-42 of New Mexico's voting leave law, employers must provide employees with up to two hours of paid leave to vote in an election. Moreover, an employee may request time off to vote if they don’t have two consecutive hours available while polls are open. In such cases, the employer must provide up to two hours of paid voting leave, but may specify the hours during which the voter may be absent. |
All states must comply with federal health and safety standards overseen by the Occupational Safety and Health Administration (OSHA).
New Mexico, however, also adopted and imposes additional, OSHA-approved regulations that exceed those federal standards. New Mexico’s State OSHA Plan is overseen by the New Mexico Occupational Health and Safety Bureau.
New Mexico currently has no work break laws or regulations.
As described by the New Mexico Human Rights Act, and enforced by the Human Rights Bureau, employers in New Mexico are prohibited from discriminating against employees based on:
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New Mexico also requires employers to comply with specific anti-harassment mandates, also outlined in the state’s Human Rights Act. Employers must, for example, address and resolve complaints as they arise.
New Mexico doesn't, however, require employees to complete any harassment or discrimination training courses.
| New Mexico Non-Compete Agreement Laws | New Mexico is one of several states that limit the use of non-compete agreements. Under NM Stat § 24-1I-2, certain healthcare providers can’t lawfully enter into non-competition agreements, meaning employers can’t create an employment or severance agreement for a healthcare provider that includes a non-compete clause. Furthermore, such covenants are limited in time and geographic scope, meaning the agreement can only limit the employee’s ability to compete with a business for a limited amount of time and within a reasonable area in relation to the business. |
| New Mexico Retirement Plan Laws | New Mexico is one of a handful of states with an approved retirement plan law, but the program’s adoption has been delayed. |
| New Mexico Pre-Employment Inquiries Laws | Under NMSA 1978 § 28-2-NEW, employers in New Mexico may not make an inquiry regarding an applicant’s history of arrest or conviction on the employment application. Employers may consider an applicant’s conviction after review of the applicant’s application and upon discussion of employment with the applicant. Employers are not prohibited from notifying the public or an applicant that the law or the employer’s policy could disqualify an applicant who has a certain criminal history from employment in a particular position with that employer. |
This information is provided as a courtesy and may be updated at any time. It is not intended as legal guidance. If you have questions or concerns, we encourage you to seek the advice of a qualified employment or labor attorney or advisor.
Between constantly changing employment laws and updates to the Affordable Care Act (ACA), keeping your workplace compliant can be a time-consuming and costly challenge. Eliminate the stress and stay up to date with our Compliance Dashboard. View compliance alerts and get a bird’s eye view of what you need to do to avoid fines and penalties.
