Restaurant owners plan to show up in force Friday to oppose a proposal that would raise New Mexico’s minimum wage, saying it would devastate their bottom line.
House Bill 31 calls for New Mexico’s minimum wage to increase to $10 an hour from the current $7.50, starting in July. That rate would go up to $11 next year and $12 the following year. Starting in July 2022, annual increases would be tied to the inflation rate.
The bill also contains language that would eliminate the existing lower base wage for tipped employees and replace it with the new $10 minimum. Employers now can pay tipped employees $2.50, as long as the worker’s income, including tips, totals the minimum $7.50 an hour. If it doesn’t, the restaurant owner is supposed to make up the difference.
The measure is to be heard Friday by the House Commerce and Economic Development Committee.