[New Mexico] Minimum wage increases now in effect

[New Mexico] Minimum wage increases now in effect
06 Jan 2021

On January 1 a new minimum wage went into effect across New Mexico. Most workers making minimum wage will now earn $10.50 per hour; a $1.50 increase. The increase was approved in 2019. Under a bill signed by governor Michelle Lujan Grisham a phased increase will see wages continue to go up until they reach $12 per hour by 2023, KOB 4 reports.

Many groups reportedly advocated for the increase but businesses are now concerned about what it will mean as it takes effect during the COVID-19 pandemic.

A statement from the New Mexico Restaurant Association said, "With all that is facing restaurants in New Mexico due to the pandemic, this increase will only deepen the crisis for the industry, and once we can open back up it will only slow the rehiring at restaurants across the state." 

And the owners of Safari Grill said their costs will go up as the minimum wage increases.

“It’s really rough, especially because of the pandemic," Shina Mohamed - co-owner of Safari Grill - said, "We’ve been hit really, really hard. We’re struggling to stay open and now with the wage increase, it becomes even harder.”

Ms Mohamed said she's happy to pay the restaurant’s wait staff more because there is not a lot going on. However, she reportedly wishes the state could have waited until later in the year or offered more financial aid to support the change.

"It’s like we almost don’t want to but maybe we’ll have to increase our prices or cut down on the portion size or something to make sure that we can still stay afloat and comply with the wage increase,” Ms Mohamed said.

Santa Fe and Las Cruces will not be impacted by the increase because these cities require that businesses pay above the state-mandated minimum wage.

Source: KOB 4

(Quotes via original reporting)

On January 1 a new minimum wage went into effect across New Mexico. Most workers making minimum wage will now earn $10.50 per hour; a $1.50 increase. The increase was approved in 2019. Under a bill signed by governor Michelle Lujan Grisham a phased increase will see wages continue to go up until they reach $12 per hour by 2023, KOB 4 reports.

Many groups reportedly advocated for the increase but businesses are now concerned about what it will mean as it takes effect during the COVID-19 pandemic.

A statement from the New Mexico Restaurant Association said, "With all that is facing restaurants in New Mexico due to the pandemic, this increase will only deepen the crisis for the industry, and once we can open back up it will only slow the rehiring at restaurants across the state." 

And the owners of Safari Grill said their costs will go up as the minimum wage increases.

“It’s really rough, especially because of the pandemic," Shina Mohamed - co-owner of Safari Grill - said, "We’ve been hit really, really hard. We’re struggling to stay open and now with the wage increase, it becomes even harder.”

Ms Mohamed said she's happy to pay the restaurant’s wait staff more because there is not a lot going on. However, she reportedly wishes the state could have waited until later in the year or offered more financial aid to support the change.

"It’s like we almost don’t want to but maybe we’ll have to increase our prices or cut down on the portion size or something to make sure that we can still stay afloat and comply with the wage increase,” Ms Mohamed said.

Santa Fe and Las Cruces will not be impacted by the increase because these cities require that businesses pay above the state-mandated minimum wage.

Source: KOB 4

(Quotes via original reporting)