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SW New Mexico News

Tuesday, October 15, 2024

Las Cruces announces new minimum wage increase effective January

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Mayor Eric Enriquez City of Las Cruces | City of Las Cruces

Mayor Eric Enriquez City of Las Cruces | City of Las Cruces

Pursuant to the Las Cruces Municipal Code, the minimum wage in Las Cruces will see an increase starting January 1, 2025. As outlined by the code, the minimum wage will rise to $12.65 per hour, while the tipped wage will increase to $5.06 per hour.

The history of Las Cruces' minimum wage adjustments dates back to 2014 when ordinance 2726 was enacted. This ordinance established a baseline for minimum and tipped wages with provisions for annual increases. From 2015 through 2019, these wages were fixed amounts; however, from 2020 onwards, increases have been linked to the Consumer Price Index (CPI) as specified by the ordinance.

In January 2020, New Mexico implemented its Minimum Wage Act. Each September, a calculation is made comparing the city’s ordinance-based wages with those set by the state. The higher figure is adopted annually. In 2020, Las Cruces had a higher minimum wage than New Mexico's statewide rate and therefore adopted its own rates; however, from 2021 through 2023, New Mexico's rates surpassed those of Las Cruces.

In 2024, while New Mexico maintained its $12 state minimum wage rate, Las Cruces increased its local rate based on CPI adjustments and ordinance stipulations that favor adopting whichever is higher—state or local figures.

Looking ahead to 2025, New Mexico’s state minimum wage remains at $12 per hour. However, due to CPI indexing and city regulations favoring higher rates where applicable, Las Cruces will adopt an increased local minimum wage of $12.65 per hour.

A summary of recent years’ adopted wages reveals:

- In 2020: Minimum Wage was $10.25*; Tipped Wage was $4.10

- In 2021: Minimum Wage was $10.50; Tipped Wage was $4.16

- In 2022: Minimum Wage was $11.50; Tipped Wage was $4.40

- In 2023: Minimum Wage was $12.00; Tipped Wage was $4.78

- In 2024: Minimum Wage rose to $12.36*; Tipped Wage reached $4.95

- For upcoming year 2025: Minimum Wage will be adjusted to $12.65*; Tipped Wage increased further to $5.06

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