New Mexico tip laws (2026)
New Mexico employers can pay tipped workers $3.00 an hour in cash, as long as tips bring them to the $12.00 state minimum. Albuquerque, Las Cruces, Santa Fe and Santa Fe County set higher local rates. State law limits tip pools to wait staff, so cooks and dishwashers stay out.
New Mexico at a glance
Tip credit allowedNew Mexico: $12.00 an hour minimum wage. Tipped staff can be paid $3.00 cash, with up to $9.00 counted from tips.
| State minimum wage | $12.00/hr | Statewide from .[1] |
|---|---|---|
| Tipped cash wage | $3.00 | Plus up to $9.00 in tips = $12.00.[1] |
| Max tip credit | $9.00 | Counted from tips.[2] |
| Tip pooling | Allowed | Mandatory pools allowed.[1][3] |
| Card-fee deduction | Unsettled | No New Mexico law found. The federal actual-fee rule applies. See what we found[1] |
| Card tip payout | Federal covered employers must pay charged tips by the regular payday without waiting for card-company reimbursement; no separate state card-tip timing rule located.[3] | |
| Local minimum wages | 4 places | Local rates on file. See all[4] |
Rates verified against the New Mexico Department of Workforce Solutions, Labor Relations Division on . Rates as of . Tipped totals are worked out from the rates above. Download this data (CSV)
02The yes/no sheet
Can you do this in New Mexico?
In New Mexico you can take a tip credit of up to $9.00 an hour and can require staff to join a tip pool. Each answer below carries its condition and an official source.
| Number | Can you… | Answer | The condition |
|---|---|---|---|
| 01 | Take a tip credit against minimum wage? | Yes | Pay at least $3.00 cash and count up to $9.00 in tips. Tips must cover the gap.[1][2] |
| 02 | Make staff join a tip pool? | Yes | Allowed, as long as only eligible staff share.[1][3] |
| 03 | Include bartenders, bussers, runners and hosts? | Depends | Bartender, busser, food runner and host: must actually be wait staff; federal managerial exclusion also applies.[1][3] |
| 04 | Include cooks and dishwashers? | No | State tip pooling is limited to wait staff; cooks and dishwashers do not qualify merely because full cash minimum is paid.[1] |
| 05 | Give managers or supervisors a share? | No | Federal rule for covered employment: no manager/supervisor may receive employees’ pooled tips; directly and solely provided personal service is separate.[3] |
| 06 | Let an owner keep any of the tips? | No | Federally covered employers cannot keep employees' tips. Active owners with a 20% equity stake count as managers.[3] |
| 07 | Pick your own split (hours, points or percentages)? | Depends | A valid employer-required pool may allocate tips only among qualifying wait staff; no separate numeric allocation requirement located.[1][3] |
| 08 | Take card processing fees out of tips? | Unsettled | No New Mexico law found. The federal actual-fee rule applies. See what we found[1] |
| 09 | Hold card tips until payday? | Deadline | Federal covered employers must pay charged tips by the regular payday without waiting for card-company reimbursement; no separate state card-tip timing rule located.[3] |
| 10 | Cover walkouts, breakage or register shortages from tips? | No | Not from tips.[3][1] |
| 11 | Keep a mandatory service charge for the house? | Federal rule | No state rule. Federal rule applies: a compulsory service charge is not an FLSA tip. Amounts distributed to employees are wages that may satisfy wage obligations and must enter the regular rate for overtime. This federal wage classification does not decide contractual or state-law ownership.[3] |
| 12 | Pay tips on a payroll card? | Depends | The statute doesn't name payroll cards. Voluntary account deposit appears permitted, and cash or check stays available. Offer another way to get paid too.[4] |
03State vs federal
New Mexico vs federal law
New Mexico sets a stricter rule than federal law on 2 of the 10 rules below, starting with a $12.00 minimum wage against the federal $7.25. Where the two differ, the rule that is better for the worker applies.
| Rule | Federal (FLSA) | New Mexico | Comparison |
|---|---|---|---|
| Minimum wageStricter | Federal$7.25[3] | New Mexico$12.00[1] | Stricter |
| Tipped cash wageStricter | Federal$2.13[3] | New Mexico$3.00[1] | Stricter |
| Max tip creditHigher credit | Federal$5.12[3] | New Mexico$9.00[2] | Higher credit |
| Who counts as tippedState rule | FederalMore than $30 a month in tips, customarily and regularly received in the occupation.[3] | New MexicoCustomarily and regularly gets more than $30 a month in tips.[1] | State rule |
| Managers in the poolFederal applies | FederalManagers/supervisors meeting the executive duties test cannot keep employees’ tips or receive from pools; they may keep only tips received directly for services they directly and solely provide. No salary-level test is used for this tip restriction.[3] | New MexicoFederal rule for covered employment: no manager/supervisor may receive employees’ pooled tips; directly and solely provided personal service is separate.[3] | Federal applies |
| Kitchen in the poolState rule | FederalCooks and dishwashers may join a nontraditional mandatory pool only when all workers receive a direct cash wage of at least the full federal minimum wage and no tip credit is taken; employer/managers/supervisors remain excluded. State law may be stricter.[3] | New MexicoState tip pooling is limited to wait staff; cooks and dishwashers do not qualify merely because full cash minimum is paid.[1] | State rule |
| Card fees from tipsState rule | FederalOnly the actual proportional credit-card transaction fee may be deducted from charged tips; no deduction exceeding that fee or reducing required minimum wages; state law may forbid even that deduction.[3] | New MexicoUnsettled. No New Mexico law found. The federal actual-fee rule applies. See what we found[1] | State rule |
| Card tip payoutFederal applies | FederalCharged tips due by regular payday, without waiting for processor reimbursement. Employer-administered pools fully distributed by regular payday for the workweek/pay period; if the amount/distribution cannot be determined before payroll, distribute as soon as practicable afterward.[3] | New MexicoFederal covered employers must pay charged tips by the regular payday without waiting for card-company reimbursement; no separate state card-tip timing rule located.[3] | Federal applies |
| Mandatory service chargesFederal applies | FederalA compulsory service charge is not an FLSA tip. Amounts distributed to employees are wages that may satisfy wage obligations and must enter the regular rate for overtime. This federal wage classification does not decide contractual or state-law ownership.[3] | New MexicoFederal rule applies.[5] | Federal applies |
| Overtime for tipped staffState rule | FederalFor covered nonexempt employees, overtime generally begins after 40 hours in a workweek. Use the full regular rate, at least the full federal minimum wage, not $2.13; the hourly tip credit is not increased for overtime. Voluntary tips above the tip credit are excluded; distributed service charges enter the regular rate.[3] | New Mexico1.5 times the regular rate after 40 hours a week. At federally covered employers, the tip credit can't grow for overtime.[1][3] | State rule |
Every state starts from the same federal floor. Federal tip law baseline: the FLSA rules, rates and sources, and how New Mexico fits among the four tip credit classes.
04Wages
Minimum wage and the tip credit in New Mexico
In New Mexico employers can pay tipped staff $3.00 an hour and count up to $9.00 in tips toward the $12.00 minimum. If tips fall short, the employer makes up the difference.[1]
One server, one slow 30-hour week in New Mexico
A busy week with $270.00 or more in tips needs no top-up. Every tip above that is the server's. Fictional worker and tips.
- Tip credit conditions
- Retain employee tips except valid wait-staff pooling; actual tips plus cash must reach the applicable minimum; employer pays shortfall.[1]
- Who counts as tipped
- Customarily and regularly gets more than $30 a month in tips.[1]
- Overtime
- 1.5 times the regular rate after 40 hours a week. At federally covered employers, the tip credit can't grow for overtime.[1][3]
- Side work and dual jobs
- No state rule. Federal rule applies: current 29 CFR 531.56(e) is the restored 1967 occupation-based dual-jobs rule. No tip credit for a separate non-tipped occupation; related duties within the tipped occupation need not themselves produce tips. The vacated 2021 federal 80/20 and 30-continuous-minute limits are not current regulatory limits. FAB 2026-1 withdraws historical opinion letters and confirms WHD enforcement guidance no longer sets specific time limits; it is agency guidance, not a new statute or regulation.[6][7][5]
Other rates
One statewide rate. No employer-size, industry or youth rates in New Mexico.
Scheduled increases
No statewide increase with a published amount is on file as of .
05Local rates
City and county minimum wages in New Mexico
4 cities and counties in New Mexico set their own minimum wage, from $12.00 in Albuquerque to $15.40 in Santa Fe. A restaurant inside one of them pays the local rate, not the $12.00 state rate.[4]
| City or county | Rate | vs state $12.00 | Tipped cash wage | Effective |
|---|---|---|---|---|
| Santa FeCity limits only. Local tipped status takes $100 a month in tips. A new blended annual adjustment starts March 1, 2028.[8] | $15.40 | +$3.40 over state | $3.00 | Next change $17.50 on |
| Santa Fe CountyCovers county-licensed businesses in unincorporated areas, county government and contractors, with exemptions. Adjusts yearly with CPI. The 2027 amount isn't published.[9] | $15.40 | +$3.40 over state | $4.62 | |
| Las CrucesPublished 2027 tipped cash wage: $5.39.[10] | $13.01 | +$1.01 over state | $5.20 | Next change $13.47 on |
| AlbuquerqueQualifying health/childcare benefitsEmployer provides qualifying benefits worth at least $2,500 a year. The 2027 tipped cash wage is $7.20.[11] | $12.00 | Same as state | $7.20 | Next change $12.00 on |
| AlbuquerqueStandardThe 2027 tipped cash wage stays $7.20. Enacted minimums: $14 in 2028 and $15 in 2029. Future tipped percentages change.[11] | $12.00 | Same as state | $7.20 | Next change $13.00 on |
City rates
Local rates on the move
Three local minimums rise on January 1, 2027, and Albuquerque and Santa Fe have more changes already set.[11][10][8][9][12]
- ComingAlbuquerque: $13.00 Tipped cash wage $7.20. The benefits tier stays $12.00.[11]
- ComingLas Cruces: $13.47 Tipped cash wage $5.39.[10]
- ComingSanta Fe city: $17.50 A one-time legislative jump.[8]
- 2028ComingAlbuquerque: $14.00 Enacted by O-26-33. Tipped percentages also change.[12]
- ComingSanta Fe city: new adjustment A new blended annual adjustment begins.[8]
- 2029ComingAlbuquerque: $15.00 Enacted by O-26-33.[12]
06Tip pool
Who can be in the tip pool in New Mexico
New Mexico allows tip pools, and employers can make them mandatory. Owners, managers and supervisors can't share in them. A tip pool collects tips and splits them among staff; a tip-out is one worker handing part of their tips to others.
| Role | Can share? | Condition |
|---|---|---|
| Front of house | ||
| Server | Depends | Must actually be wait staff; federal managerial exclusion also applies.[1][3] |
| Bartender | Depends | Must actually be wait staff; federal managerial exclusion also applies.[1][3] |
| Busser | Depends | Must actually be wait staff; federal managerial exclusion also applies.[1][3] |
| Food runner | Depends | Must actually be wait staff; federal managerial exclusion also applies.[1][3] |
| Host | Depends | Must actually be wait staff; federal managerial exclusion also applies.[1][3] |
| Barback | Depends | Must actually be wait staff; federal managerial exclusion also applies.[1][3] |
| Expo | Depends | Must actually be wait staff; federal managerial exclusion also applies.[1][3] |
| Back of house | ||
| Cook | Not allowed | Not wait staff; state pooling exception is restricted to wait staff.[1] |
| Dishwasher | Not allowed | Not wait staff; state pooling exception is restricted to wait staff.[1] |
| Leadership | ||
| Shift lead | Depends | Must actually be wait staff; federal managerial exclusion also applies.[1][3] |
| Manager or supervisor | Not allowed | Federal covered employers: no receipt of employees’ pooled tips.[3] |
| Owner | Not allowed | Federal covered employers: no receipt of employees’ pooled tips.[3] |
- Managers and supervisors
- Federal rule for covered employment: no manager/supervisor may receive employees’ pooled tips; directly and solely provided personal service is separate.[3]
- Owners
- Federally covered employers cannot keep employees' tips. Active owners with a 20% equity stake count as managers.[3]
- Back of house
- State tip pooling is limited to wait staff; cooks and dishwashers do not qualify merely because full cash minimum is paid.[1]
- Who sets the percentages
- A valid employer-required pool may allocate tips only among qualifying wait staff; no separate numeric allocation requirement located.[1][3]
Stricter than federal
New Mexico tip pools are for wait staff
The state pooling exception covers wait staff only. Cooks and dishwashers don't qualify, even when they get the full cash minimum.[1][3]
New Mexico
- Pooling allowed among wait staff
- Cooks and dishwashers excluded
- Managers and supervisors excluded
Federal baseline
- Kitchen staff may join a pool where everyone gets the full cash wage
- Managers and supervisors excluded
07Put it to work
Setting up a tip pool in New Mexico
Under New Mexico rules, 6 of the 10 staff in this example can share a $1,200 pool. The table splits the same pool by percentage, by points and by hours.
| Who | By % | By points | By hours |
|---|---|---|---|
| Maya | $268.29 | $250.00 | $211.78 |
| Jordan | $268.29 | $250.00 | $211.76 |
| Priya | $268.29 | $250.00 | $211.76 |
| Sam | $175.61 | $200.00 | $211.76 |
| Luis | $109.76 | $125.00 | $176.47 |
| Ava | $109.76 | $125.00 | $176.47 |
| Theo | Not in the pool. Not wait staff; state pooling exception is restricted to wait staff. | ||
| Kim | Not in the pool. Not wait staff; state pooling exception is restricted to wait staff. | ||
| Rafa | Not in the pool. Not wait staff; state pooling exception is restricted to wait staff. | ||
| Dana | Not in the pool. Federal covered employers: no receipt of employees’ pooled tips. | ||
| Total | $1,200.00 | $1,200.00 | $1,200.00 |
Fictional restaurant and staff. The guest-facing staff here are assumed to meet New Mexico's condition for sharing (see who can be in the tip pool, above). Percentages and point weights are examples, not a recommendation. Shares are rounded to the cent, and any leftover cent goes to the first server. Run your own numbers in the tip pooling calculator.
Ferry Tip Manager: support pool split by hours
Servers and bartenders pay into the support pool, and Tip Manager splits it by hours worked. Each person sees their share, with no spreadsheet at close.
Who it's for Full-service restaurants that tip out bussers, runners and bar backs
08Service charges
Service charges vs tips in New Mexico
New Mexico has no service charge rule of its own. Under federal law a mandatory service charge is not a tip, and any part paid to staff counts as wages.
| Question | OptionalTip | MandatoryService charge |
|---|---|---|
| Who sets the amount | The guest | The business |
| Who it belongs to | The worker it was left for, or the pool | No state rule. Federal rule applies: a compulsory service charge is not an FLSA tip. Amounts distributed to employees are wages that may satisfy wage obligations and must enter the regular rate for overtime. This federal wage classification does not decide contractual or state-law ownership.[3][5] |
| Can it go to staff? | Yes, through the pool | Yes. Amounts paid to staff are wages, not tips.[3] |
| How it's taxed (federal) | Tip income the worker reports | Regular wages, with payroll taxes[13][14] |
| Guest notice | None needed | No state rule. Federal law sets no menu or receipt notice rule.[5] |
- Step 1Did the guest choose whether to pay it, and how much?YesIt's a tip. It belongs to staff.NoIt's a mandatory charge. Go to step 2.
- Step 2What does New Mexico say?Federal ruleNo state rule. Federal rule applies: a compulsory service charge is not an FLSA tip. Amounts distributed to employees are wages that may satisfy wage obligations and must enter the regular rate for overtime. This federal wage classification does not decide contractual or state-law ownership.[3][5]
- Step 3Check the cityNo city service charge rules on file for New Mexico.
- Menu and receipt notice
- No state rule. Federal law sets no menu or receipt notice rule.[5]
- Large-party auto gratuities
- No state rule. Federal rule applies: mandatory automatic gratuities are service charges for federal tax purposes, even when distributed to employees; a label does not make the payment voluntary.[13][14][5]
Local service charge rules
No local service charge rules on file for New Mexico.
More on the difference: service charge vs tip.
09Card tips
Card tips in New Mexico: fees and payout timing
In New Mexico whether card fees can come out of tips depends on the conditions below. Payout deadline: federal covered employers must pay charged tips by the regular payday without waiting for card-company reimbursement; no separate state card-tip timing rule located.
No New Mexico law found. The federal actual-fee rule applies. See what we found
When card tips have to land
- TonightGuest adds a tip On the card, at the table.
- CloseShift is tallied The pool is split by your rules.
- DeadlineNew Mexico rule Federal covered employers must pay charged tips by the regular payday without waiting for card-company reimbursement; no separate state card-tip timing rule located.[3]
- Last dayFinal pay Fired: fixed wages are due on demand and paid within 5 days, other wages within 10. Quit: next regular payday, unless a fixed-term contract differs.[4]
Paydays: Regular paydays no more than 16 days apart. Usually first-half wages by the 25th, second-half by the 10th of next month. Exceptions apply.[4]
Paying tips on a payroll card
- Allowed?DependsThe statute doesn't name payroll cards. Voluntary account deposit appears permitted, and cash or check stays available.[4]
- Worker consent needed?Yes
- Must you offer another option?Yes
- Holding cash tipsFederal ruleNo state rule. Federal rule applies: employer may collect to administer a valid pool, then distribute under the regular-payday rule. No broader authorization to retain cash tips is established.[3][5]
- Tips shown on the pay stubNo (federal)No state rule. Federal rule applies: no. FLSA does not require pay stubs; state laws and employer records are separate.[15][5]
Ferry Pay: each tip share, paid out digitally
Each person's direct tips, tip outs and payable amount in one view, then paid through Ferry Pay. No cash to keep on hand for payouts. Eligibility and fees apply.
Who it's for Operators who want to stop the nightly cash run
“Since launching this card program, we've reduced our cash-carrying costs by over 66 percent”
Not covered here? Ask the New Mexico Department of Workforce Solutions, Labor Relations Division.
Unsettled
Card fees on tips in New Mexico: what we found
We found no New Mexico law on taking card fees out of tips, so the federal rule sets the limit.[3]
The federal rule that applies (DOL Fact Sheet #15)
- Only the actual card processing fee on the tip can come out.
- The deduction can't drop the worker's pay below the minimum wage.
- Card tips are paid by the next regular payday.[3]
What guides say online (unverified)
New Mexico LegislatureBill page, HB 22 (2025) Passed in the House of Representatives - Y:62 N:5
HB 22 would have banned card-fee deductions from tips. The bill page lists it as died after action was postponed indefinitely.
nmlegis.gov/Legislation/Legislation
These are third-party guides and pages we read online on November 5, 2026. They aren't legal advice and we haven't checked them against the statute. Ask the state labor office before you rely on them.
10Records
Records and notices in New Mexico
Keep each tipped worker's tips and hours on record, shift by shift. New Mexico: state wage-payment records: at least 1 year after entry.
New Mexico State
- Tip records Keep accurate hours and wage records. Wage receipts show gross pay, hours, total wages and benefits, and itemized deductions. Federal tip records apply too.[4]
- How long to keep them State wage-payment records: at least 1 year after entry. Federally covered payroll records: 3 years.[4][16]
- Tip credit notice Required. Federal covered employers disclose cash wage, credit amount, actual-tip limit, retention/pool rules and notice before credit.[3]
- Posters and forms New Mexico Minimum Wage Act poster; Wage Claim Form (worker filing resource).[4][5]
Everywhere Federal
- Tip records Maintain employee identity, time and pay records. Tip-credit employers additionally retain tipped employee, reported tips, credit amounts and hours/earnings by tipped and nontipped occupation. No-tip-credit employers operating mandatory pools record each recipient and weekly/monthly tips. IRS daily records/reporting are separate obligations.[3]
- How long to keep them FLSA: payroll records at least three years; underlying wage-computation records two years. Tax retention is separate.[16]
- Tip credit notice Oral or written notice must state cash wage; tip credit amount; credit cannot exceed actual tips; employee retains tips except valid traditional pool; credit unavailable until informed. Traditional pool contribution amounts also disclosed.[3]
- A written pool policy Good practice, not a federal rule: who's in, how it splits, when it pays. Share it with staff. How to write one.
Think your tips were handled wrong in New Mexico?
Workers in New Mexico can file a tip or wage claim with the New Mexico Department of Workforce Solutions, Labor Relations Division. Filing is free, and this page can't settle a dispute; the state can.[5]
Retaliation: No firing, demotion, denied promotion or other discrimination for asserting minimum-wage rights, helping others, or telling workers their rights.[4]
Penalties: Unpaid minimum wages plus interest and an extra 2 times the unpaid amount. Misdemeanor penalties and other remedies may also apply.[5][4]
Can they take this out of my tips?
- Walkouts and dine-and-dashNot allowedFederally covered employers cannot use employee tips for business losses or uniform costs; ordinary wage deductions are separate.[3]
- BreakageNot allowedFederally covered employers cannot use employee tips for business losses or uniform costs; ordinary wage deductions are separate.[3]
- Register shortagesNot allowedFederally covered employers cannot use employee tips for business losses or uniform costs; ordinary wage deductions are separate.[3]
- UniformsNot allowedFederally covered employers cannot use employee tips for business losses or uniform costs; ordinary wage deductions are separate.[3]
- A manager's shareNot allowedFederal covered employers cannot retain employees’ tips.[3]
11Law changes
What changed in New Mexico tip law, and what's coming
No statewide increase with a published amount is on file for New Mexico as of . Most recent change: Albuquerque amended its minimum wage and future tipped percentages. The 2027 notice keeps tipped cash at $7.20 ().
12FAQ
New Mexico tip law questions
Plain answers to the 8 questions restaurant owners and staff ask most about New Mexico tip law, each linked to its source.
What is New Mexico's tipped minimum wage?
The statewide cash wage is $3.00 an hour. Cash plus tips must reach at least $12.00, and higher local rates may apply.[1]
Can cooks and dishwashers share a tip pool?
No. New Mexico's pooling exception covers wait staff only. Paying kitchen staff the full cash minimum doesn't change that.[1]
Is there still a student minimum wage?
No. The 2021 amendment removed the secondary-school student exception.[1]
What is the Santa Fe city minimum wage?
$15.40 an hour from March 1, 2026. The city has enacted $17.50 starting January 1, 2027.[8]
What changes in Las Cruces in 2027?
From January 1, 2027, the minimum is $13.47 and the tipped cash wage is $5.39.[10]
What is Albuquerque's 2027 minimum wage?
$13.00 from January 1, 2027, with a $7.20 tipped cash wage. Employers with qualifying health or childcare benefits stay at $12.00.[11]
When is final pay due after a firing?
Fixed wages are due on demand and must be paid within five days. Task, piece and commission wages within ten days.[4]
What can a worker recover for unpaid minimum wages?
The unpaid wages plus interest, and an extra amount equal to twice the unpaid wages.[5]
13Compare
How New Mexico compares with nearby states
New Mexico borders Arizona, Colorado, Oklahoma, Texas and Utah. Arizona and Colorado pay a higher minimum wage than New Mexico's $12.00. Running locations on both sides of a line? Each one follows its own state's rules.
Neighboring states
- Arizona tip laws$15.15 min wage $12.15 tipped cash wage Above $2.13
- Colorado tip laws$15.16 min wage $12.14 tipped cash wage Above $2.13
- Oklahoma tip laws$7.25 min wage $2.13 tipped cash wage $2.13 cash
- Texas tip laws$7.25 min wage $2.13 tipped cash wage $2.13 cash
- Utah tip laws$7.25 min wage $2.13 tipped cash wage $2.13 cash
States with the same rules
Same tip credit class as New Mexico: Tip credit, cash wage above federal.
- New Hampshire tip laws$7.25 min wage $3.27 tipped cash wage Also a tip credit with a cash wage above $2.13
- North Dakota tip laws$7.25 min wage $4.86 tipped cash wage Also a tip credit with a cash wage above $2.13
- Pennsylvania tip laws$7.25 min wage $2.83 tipped cash wage Also a tip credit with a cash wage above $2.13
- Idaho tip laws$7.25 min wage $3.35 tipped cash wage Also a tip credit with a cash wage above $2.13
- West Virginia tip laws$8.75 min wage $2.62 tipped cash wage Also a tip credit with a cash wage above $2.13
- Maryland tip laws$15.00 min wage $3.63 tipped cash wage Also a tip credit with a cash wage above $2.13
The law decides who's in. Ferry runs the split.
See how operators set pool rules in Ferry Tip Manager and pay tips out without a cash run. Bring your own New Mexico setup.
14Sources
Sources for New Mexico tip laws
Every figure on this page links to one of these 16 sources: 11 for New Mexico and 5 for the federal baseline. They are statutes, regulations and government agency pages, each with the date it was checked.
- 12021 SB 35 final enacted textNew Mexico Legislature · Official source · Page updated 2021 · Checked Pinpoint: 50-4-22(A)(5), final SB 35, p. 6; 50-4-22(C)(5), final SB 35, p. 7; 50-4-22(C)(6), final SB 35, p. 7www.nmlegis.gov/Sessions/21%20Regular/final/SB0035.pdf
What the source says
“twelve dollars ($12.00) an hour.”
“three dollars ($3.00) an hour;”
“nothing in this section shall prohibit the pooling of tips”
- 2State Tipped Minimum Wage TableU.S. Department of Labor · Official source · Page updated · Checked Pinpoint: New Mexico rowwww.dol.gov/agencies/whd/state/minimum-wage/tipped
What the source says
“New Mexico $12.00 $9.00 $3.00 More than $30”
- 3Fact Sheet 15 Federal Tipped EmployeesU.S. Department of Labor · Official source · Checked Pinpoint: Overtime Problems; Tip pooling; Employers, Including Managers and Supervisorswww.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa
What the source says
“The employer may not take a larger FLSA 3(m)(2)(A) tip credit for an overtime hour than for a straight time hour.”
“The FLSA allows employers to require employees to share or “pool” tips with other eligible employees.”
“An employer may not receive tips from such a tip pool and may not allow managers and supervisors to receive tips from the pool.”
- 4Chapter 50 statutory compilationNew Mexico Environment Department · Official source · Page updated · Checked Pinpoint: 50-4-22.1A; 50-4-2, physical p. 25www.env.nm.gov/wp-content/uploads/sites/18/2021/01/NM-OSH-Act.pdf
What the source says
“The provisions of this subsection expire on January 1, 2010.”
“not more than sixteen days apart”
“upon demand become due immediately, and the employer shall pay such wages to the employee within five days of such discharge.”
- 511.1.4 NMAC Wage and HourNew Mexico Commission of Public Records · Official source · Page updated · Checked Pinpoint: 11.1.4.123; 11.1.4.1www.srca.nm.gov/parts/title11/11.001.0004.html
What the source says
“In the event any of the rules and regulations set forth herein conflict with any applicable state law, the state law shall control.”
“The wage claim form shall be made available in all offices in which department of workforce solutions services are administered”
“Labor Relations Division, (LRD) New Mexico Department of Workforce Solutions (NMDWS).”
- 6Tip Regulations under the Fair Labor Standards Act (FLSA)U.S. Department of Labor · Official source · Checked Pinpoint: Regulatory History 2020-2024, item 3; Regulatory History, item 4; Tip regulation topics listwww.dol.gov/agencies/whd/flsa/tips
What the source says
“a federal court vacated the revision, with the effect of reinstating the Department’s original dual jobs regulation.”
“On December 16, 2024, the Department announced a technical rule to restore the original dual jobs regulation at 29 CFR 531.56(e) .”
“29 CFR 531.56(e) ); and Calculating overtime pay for tipped employees ( 29 CFR 531.60 ).”
- 7Field Assistance Bulletin No. 2026-1U.S. Department of Labor · Official source · Page updated · Checked Pinpoint: p. 1, introductory paragraphs; p. 1, introductionwww.dol.gov/sites/dolgov/files/WHD/fab/fab2026-1.pdf
What the source says
“These withdrawn opinion letters and the FOH provision that implemented them should no longer be relied upon as WHD enforcement guidance.”
“withdrawn on January 14, 2025 (see WHD FOH Revision 785), no longer reflects the Division’s policy or interpretation of the Act.”
“This Field Assistance Bulletin (FAB) withdraws Wage and Hour Division (WHD or Division) Opinion Letters FLSA-895 (Aug. 8, 1979); WH-502 (Mar. 28, 1980); and FLSA-854, 1985 WL 1259240 (Dec. 20, 1985).”
- 8Living Wage in the City of Santa FeCity of Santa Fe · Official source · Page updated 2026 · Checked Pinpoint: Key Provisions; Timelinesantafenm.gov/economic-development/living-wage-in-the-city-of-santa-fe
What the source says
“Employers may pay a base wage of $3.00 per hour.”
“January 1, 2027: $17.50 — a one-time legislative jump”
- 9Living Wage Ordinance current ratesSanta Fe County · Official source · Page updated 2026 · Checked www.santafecountynm.gov/livingwage
What the source says
“Effective March 1, 2026 Regular employees $15.40 per hour Tipped employees (base wage) $4.62 per hour”
- 10Minimum Wage Notice for 2027City of Las Cruces · Official source · Page updated · Checked lascruces.gov/minimum-wage-notice-for-2027
What the source says
“2026 | $13.01* | $5.20 2027 | $13.47* | $5.39”
- 112027 Albuquerque minimum wage determinationCity of Albuquerque · Official source · Page updated 2026 · Checked Pinpoint: 2026/2027 rate table; Tipped paragraph; 2026/2027 benefits rowwww.cabq.gov/legal/documents/2025-adjustment-in-annual-minimum-wage-english-spanish-updated-language-bmr-final.pdf
What the source says
“Minimum Wage $12.00 $1.00 $1.00 $13.00 8.3%”
“Starting January 1, 2027, the minimum wage for tipped employees will be $7.20.”
“With Health Care $12.00 $0.00 $0.00 $12.00 0%”
- 12O-26-33 enacted minimum wage ordinanceCity of Albuquerque · Official source · Page updated · Checked Pinpoint: Amended 13-12-3cabq.legistar.com/LegislationDetail.aspx?FullText=1&GUID=3F9976F5-EEF6-4512-8502-D959D75B60DF&ID=8032011&Options=ID%7CText%7C&Search=o-26-33
What the source says
“beginning January 1, 2027, shall be 55.5% of the Albuquerque minimum wage”
- 13Tip recordkeeping and reportingInternal Revenue Service · Official source · Checked Pinpoint: Service charges are not tips, paragraph 2; qualified tips deduction, net-income limit; tip income, Social Security/Medicarewww.irs.gov/businesses/small-businesses-self-employed/tip-recordkeeping-and-reporting
What the source says
“Service charges (also referred to as “auto-gratuities”), when distributed to an employee, are generally treated as wages paid by the employer to the employee rather than tips paid by the customer.”
“For self-employed individuals, the deduction may not exceed the individual’s net income (without regard to this deduction) from the trade or business in which the tips were earned.”
“These amounts are subject to federal income tax and generally are also subject to Social Security and Medicare taxes.”
- 14Revenue Ruling 2012-18Internal Revenue Service · Official source · Page updated 2012 · Checked Pinpoint: Q 1/A 1, four distinguishing factors; p. 1, ruling headingwww.irs.gov/pub/irs-drop/rr-12-18.pdf
What the source says
“compulsion; (2) the customer must have the unrestricted right to determine the amount; (3) the payment should not be the subject of negotiation or dictated by employer policy; and (4) generally, the customer has the right to determine who receives the payment.”
“Rev. Rul. 2012-18”
- 15Questions and Answers About the FLSA, DOL WHDU.S. Department of Labor · Official source · Checked Pinpoint: Recordkeeping and Notices, Are pay stubs required?www.dol.gov/agencies/whd/flsa/faq
What the source says
“However, the FLSA does not require an employer to provide employees pay stubs.”
- 16Fact Sheet 21 Federal RecordsU.S. Department of Labor · Official source · Checked Pinpoint: Posting, paragraph 1www.dol.gov/agencies/whd/fact-sheets/21-flsa-recordkeeping
What the source says
“Each employer shall preserve for at least three years payroll records, collective bargaining agreements, sales and purchase records.”
“Employers must display an official poster outlining the provisions of the Act, available at no cost from local offices of the Wage and Hour Division and toll-free, by calling 1-866-4USWage (1-866-487-9243).”
“Records on which wage computations are based should be retained for two years,”
15Methodology
How we research these pages
Every figure on this page comes from an official source, a statute, a regulation or a government agency page, and links to it where it is used. Ferry checks the page against those sources on a schedule and logs every change.
- 1
Official sources only
Statutes, regulations, state labor agencies, city ordinances and the U.S. Department of Labor. No vendor blogs, no AI answers, no secondary summaries as the only source.
- 2
Every figure is linked
Each rate and rule carries a numbered link to the statute or agency page behind it, with the exact pinpoint and, where available, a link that opens at the sentence itself.
- 3
Re-checked on a schedule
Every page is re-checked each January and July, and whenever a state or city changes a rate. Cash wage plus tip credit is checked against the minimum wage on every build.
- 4
Gaps are left out, not guessed
If a rule can't be confirmed from an official source, it isn't shown. The page points to the state agency instead.
What changed on this page
- First version of this page. Every figure was checked against the official sources listed on this page.
Researched by Ferry's tip operations research team. Last reviewed .
Changes to the law itself are listed in What changed and what's coming.
16Every state
Tip laws in every state
Pick any state for its tip credit, tip pool, service charge and card tip rules. Each chip shows the state's tip credit class.
- No tip creditNo tip credit
- Above $2.13Tip credit, cash wage above federal
- $2.13 cashTip credit, federal cash wage
- FederalFederal rates apply
51 of 51 state pages. Open the master guide for the federal baseline, tip credit classes and the full comparison table.