WAGE INCREASES FOR CERTAIN EMPLOYEES

HB 522 proposes annual cost-of-living adjustments to New Mexico's state minimum wage starting in 2026, tied to the Consumer Price Index. It specifically requires that tipped employees receive an hourly rate equal to 25% of the state minimum wage plus tips. The bill also mandates that all state public contracts include provisions ensuring contractors and subcontractors are reimbursed for wage increases and that workers on these contracts receive raises concurrent with state minimum wage changes. These changes would directly affect most minimum-wage workers in New Mexico, including those in state-contracted services, and establish a formal definition for the Consumer Price Index in state law.