Albuquerque City Council debates lowering minimum wage for tipped employees

After much of the crowd trickled out of Monday night’s City Council meeting, councilors considered lowering minimum wage for tipped employees, raising the overall city minimum wage and clarifying how the city can enforce minimum wage standards.

Councilor Nichole Rogers proposed amending city ordinances to align Albuquerque’s minimum wage rate, which is $11.10, with the state minimum wage rate of $12. Because the state rate is higher, it is already the prevailing minimum wage in Albuquerque.

The city ordinance includes a measure that raises city minimum wage annually if the cost of living increases, based on the Consumer Price Index. In 2024, the cost of living increases meant that the city rate adjusted from $10.70 to $11.10. That adjustment didn’t make a difference to workers, because they already get the higher state minimum, $12. By raising the city’s minimum wage to match the statewide minimum, workers might see an impact from that cost of living adjustment in future years.

The amendment also would require that employees working full time would get overtime pay at one and a half times their regular pay rate after working 40 hours in a week, which is already federal law, and clarify that the city can pursue civil or administrative enforcement of wage standards. The existing ordinance only includes criminal charges for violations

Rogers’ proposal was at the request of Mayor Tim Keller’s office.

However, a proposed amendment to Rogers’ proposal from Councilor Renee Grout would reduce the tipped employee minimum wage to match the statewide minimum of $3.

“We need to be business friendly, and we need to be encouraging,” Grout said.

In Albuquerque, the tipped employee minimum wage is set at $7.20. The federal minimum wage is $7.25 per hour and $2.13 per hour for tipped employees.

A parade of local restaurant owners came to speak in favor of Grout’s amendment.

Garcia’s Kitchen owner Dan Garcia asked the council to pass the amendment, because the savings it could create for restaurant owners could help restaurants raise pay for cooks and bussers. Garcia said some of his servers are making $27 to $30 or more an hour when tips are accounted for.

“If we somehow were to start people at $3 per hour, that would give us a chance to raise up our cooks, our bussers. Our cooks right now start at $15 an hour,” Garcia said, although he clarified that he had no plans to lower existing employees’ wages. Instead, he would plan to start new employees at the lower rate.

New Mexico Restaurant Association CEO Carol Wight also spoke in favor of the amendment, calling it an “important opportunity for our local economy and hospitality industry.”

Rogers was frustrated by the attempt to turn her bill into a reduction of wages for tipped employees and attempted to withdraw it, which failed on a 5-4 vote.

“I did not agree to sponsor this bill to take pay away from workers,” Rogers said.

The proposal was deferred to the next council meeting on Aug. 19, at Councilor Klarissa Peña’s suggestion, so that tipped workers also have the chance to weigh-in. The motion to defer passed 5-4. Peña said she would like to defer the proposal “forever.”