Topics Covered
- Frequency of wage payments
- Manner of wage payments
- Direct deposit
- Payment upon separation from employment
- Wage in dispute
- Deductions from wages
- Uniforms, tools, and other equipment necessary for employment
- Pre-hire medical, physical, or drug tests
- Notice of wage reduction
- Statement of wages (pay stubs)
- Record keeping requirements
- Notice requirements
Frequency of Wage Payments
An employer must designate regular pay days no more than sixteen (16) days apart. An employer must pay employees for wages earned during the 1st to 15th day of the month by the 25th of the month, and for wages earned during the 16th to last day of the month by the 10th day of the following month. An employer may pay professional, administrative or executive employees, or outside salesman one time per month. NM Statute 50-4-2
Manner of Wage Payments
An employer may pay wages by:
- cash,
- check redeemable at full face value, and
- direct deposit, if agreed to by the employer and employee.
Direct Deposit
An employer may pay wages by direct deposit if the following conditions are met:
- the employee voluntarily agrees to be paid by direct deposit
- the deposit is to the account of the employee in any bank, savings and loan association, credit union or other financial institution authorized by the United States or one of the several states to receive deposits in the United States
- the employees wages are not reduced or deducted, except as may be specifically stated in a written contract of hiring entered into at the time of hiring
Payroll Card
New Mexico labor laws do not allow employers to pay employees by payroll card. NM Investigations Manual – Labor Relations Division
Payment upon Separation from Employment
Employees who are fired, discharged, terminated, or laid off
When an employee is discharged from employment by the employer, the employer must pay the employee all wages due within five (5) days of the discharge if the wages are a fixed an definite amount. If wages are based on a task, piece, commission basis or other method of calculation, the employer must pay the discharged employee within ten (10) days of the discharge. NM Statute 50-4-4
Employees who quit or resign
When an employee voluntarily leaves employment, the employer must pay the employee all wages due by the next regular payday. NM Statute 50-4-5
Employees who are suspended or resigns due to a labor dispute (strike)
When an employee leaves employment as a result of a labor dispute, the employer must pay the employee by the next regular pay day. NM Statute 50-4-6
Wages in Dispute
In case of dispute between an employer and employee over wages, the employer must give written notice to the employee of the amount of wages which he concedes to be due and timely pay that amount, without condition. The acceptance by the employee of any payment of uncontested wages, shall not constitute a release as to the balance of his claim. NM Statute 50-4-7
Deductions from Wages
An employer can deduct the following from an employee’s paycheck only if the employee has consented in writing:
- cash shortages
- breakage, damage, or loss of the employer’s property
- uniforms
- required tools
- other items necessary for employment
An employer may not deduct, withhold or divert wages from an employee’s paycheck, unless:
- required or permitted to do so by state or federal law or court order, or
- the employee has consented to the deduction in writing.
NM Statute 50-4-2; NM Investigations Manual – Labor Relations Division
Uniforms, Tools, and Other Equipment Necessary for Employment
New Mexico does not have any laws prohibiting an employer from requiring an employee to purchase a uniform, tools, or other items necessary for employment.
Pre-hire Medical, Physical, or Drug Tests
New Mexico does not have any laws prohibiting an employer from requiring an applicant or employee to pay the cost of a medical examination or the cost of furnishing any records required by the employer as a condition of employment.
Notice of Wage Reduction
An employer must advise an employee of any change to his or her wage rate before the hours are worked. NM Investigations Manual – Labor Relations Division
Statement of Wages (Pay Stub)
An employer must provide employees a written receipt identifying the employer and setting forth:
- the employee’s gross pay,
- the number of hours worked,
- the total wages and benefits earned, and
- an itemized listing of all deductions withheld from the employee’s wages.
NM Statute 50-4-2; NM Investigations Manual – Labor Relations Division
Record Keeping Requirements
An employer must keep for a minimum of one (1) year a true and accurate record of hours worked and wages paid to each employee. New Mexico Stat. 50-4-9
For unemployment purposes, employers must keep records for four (4) years that include:
- the individual’s name, address and social security number;
- the dates on which the individual performed services for such employing unit, including beginning and ending dates, and the state or states in which such services were performed;
- the total amount of wages paid to the individual for each separate payroll period, date of payment of said wages, and amounts or remuneration paid to the individual for each separate payroll period other than “wages”, as defined in the Unemployment Compensation Law;
- whether, during any payroll period, the individual worked less than full time, and, if so, the hours and dates worked; and
- the reasons for separation of the individual.
NM Admin. Code 11.3.400.401; NM Investigations Manual – Labor Relations Division
Notice Requirements
New Mexico does not have any laws requiring employers to provide employees, whether at hire or at any other time, of notice of wage rates, dates of pay, employment policies, fringe benefits, or other terms and conditions of employment.