2019 New Mexico Statutes
Chapter 50 - Employment Law
Article 4 - Labor Conditions; Payment of Wages
Section 50-4-2 - Semimonthly and monthly pay days.
A. An employer in this state shall designate regular pay days, not more than sixteen days apart, as days fixed for the payment of wages to all employees paid in this state. The employer shall pay for services rendered from the first to the fifteenth days, inclusive, of any calendar month by the twenty-fifth day of the month during which services are rendered, and for all services rendered from the sixteenth to the last day of the month, inclusive, of any calendar month by the tenth day of the succeeding month. Where computation of earnings and of amounts due, preparation of payrolls and issuance of paychecks are at a central location outside New Mexico, the employer shall pay for services rendered from the first to the fifteenth days, inclusive, of any calendar month by the last of the month during which services are rendered, and for all services rendered from the sixteenth to the last day of the month, inclusive, of any calendar month by the fifteenth day of the succeeding month.
B. Except as provided by rules of the department of finance and administration for payment of salaries and wages to state employees, other than employees of institutions of higher education, promulgated pursuant to Section 10-7-2 NMSA 1978, an employer shall pay wages in full, less lawful deductions and less payroll deductions authorized by the employer and employee. Wages shall be paid in lawful money of the United States or in checks, payroll vouchers or drafts on banks, convertible into cash on demand at full face value or, with the voluntary authorization of the employer, employee and financial institution, by deposit 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, without any reduction or deduction, except as may be specifically stated in a written contract of hiring entered into at the time of hiring. An employer shall provide an employee with a written receipt that identifies the employer and sets forth the employee's gross pay, the number of hours worked by the employee, the total wages and benefits earned by the employee and an itemized listing of all deductions withheld from the employee's gross pay. Nothing contained in Sections 50-4-1 through 50-4-12 NMSA 1978 shall in any way limit or prohibit the payment of wages or compensation at more frequent intervals than those set forth in this section. Where the labor or service to be rendered to an employer is recompensed on a task, piece or commission basis or other method of calculating the amount of wages to be paid, other than a definite and fixed amount in cash, the employer and the employee may agree in writing at the time of hiring that the wages shall be paid on a monthly basis, on or before the tenth day of the succeeding calendar month.
C. Notwithstanding the provisions of Subsection A of this section, an employer may pay professional, administrative or executive employees or employees employed in the capacity of outside salesman, as those terms are defined under the federal Fair Labor Standards Act, one time per month, excluding those employees whose wages are subject to provisions of collective bargaining agreements.
History: Laws 1937, ch. 109, § 2; 1941 Comp., § 57-302; Laws 1949, ch. 117, § 1; 1953 Comp., § 59-3-2; Laws 1975, ch. 223, § 1; 1991, ch. 95, § 1; 1993, ch. 26, § 1; 2005, ch. 93, § 2.ANNOTATIONS
Cross references. — For state employees' salaries payable at least semimonthly, see 10-7-2 NMSA 1978.
For pay period for certified school personnel, see 22-10-7 NMSA 1978.
For pay period for water masters and assistants, see 72-3-4 NMSA 1978.
For the federal Fair Labor Standards Act referred to in Subsection C, see 29 U.S.C. § 201 et seq.
The 2005 amendment, effective June 17, 2005, provides in Subsection B that except as provided by rules of the department of finance and administration for payment of salaries and wages to state employees, other than employees of institutions of higher education, employers shall pay wages in full, less authorized deductions.
The 1993 amendment, effective July 1, 1993, inserted the second sentence of Subsection B.
The 1991 amendment added Subsection C.
Pay intervals not more than 30 (now 16) days. — This section requires employers to pay employees at intervals of not more than 30 (now 16) days. Advance Loan Co. v. Kovach, 1968-NMSC-154, 79 N.M. 509, 445 P.2d 386.
Municipalities not equal to the state for purposes of payment of wages. — Although a municipality may be an auxiliary of the state government, this relationship does not equate municipalities with the state for purposes of benefits and privileges, and therefore the express exclusion of the state in its capacity as an employer from 50-4-2(A) NMSA 1978 does not also exempt municipalities from complying with this section. Rainaldi v. City of Albuquerque, 2014-NMCA-112.
Municipal employers. — Municipalities, as political subdivisions of the state, are not "employers" as defined by the Minimum Wage Act and are therefore exempt from the overtime compensation requirements of the Minimum Wage Act, but when a municipality elects to provide overtime compensation, it must comply with the overtime compensation schedule set forth in this section. Rainaldi v. City of Albuquerque, 2014-NMCA-112.
Overtime wages. — Where the city of Albuquerque delayed compensation of accrued overtime to police officers who received overtime pay accrued during the first week of the particular pay period combined with overtime pay accrued during the second week of the preceding pay period, the city's overtime compensation schedule did not comply with this section, which requires that employees be paid within ten days for all services rendered during the particular pay period. Rainaldi v. City of Albuquerque, 2014-NMCA-112.
"Banking" of hours violates this section. — Employer's policy of "banking" hours in excess of forty per week and deferring compensation for these hours for a period of up to one year conflicts with the Federal Labor Standards Act and this section, which prohibits employers from withholding compensation for such a lengthy period of time. N.M. Dep't of Labor v. A.C. Elec., Inc., 1998-NMCA-141, 125 N.M. 779, 965 P.2d 363.
Am. Jur. 2d, A.L.R. and C.J.S. references. — 48A Am. Jur. 2d Labor and Labor Relations § 4196 et seq.
Constitutionality of statute regulating the time of payment of wages, 12 A.L.R. 635, 26 A.L.R. 1396.
30 C.J.S. Master and Servant §§ 177, 178.