How do you calculate overtime pay in New Mexico?

New Mexico overtime laws are designed to protect employees by requiring extra pay—typically time and a half—for any hours worked over 40 in a seven-day workweek.

This article provides important information regarding New Mexico’s overtime laws, how they mirror the federal Fair Labor Standards Act (FLSA), which employees are exempt from this law, and what measures both employees and employers can take to abide by these laws.

This Article Covers:

Understanding Overtime in New Mexico

Which Overtime Laws Apply in New Mexico?

Both federal and state laws apply to overtime in New Mexico. While the FLSA sets the baseline rules, New Mexico’s statutes clarify who qualifies for overtime and how it’s calculated.

In most cases, employees must be paid 1.5 times their regular rate for hours worked beyond 40 in a seven-day workweek. If there’s a conflict between federal and state law, the standard that offers greater protection to employees will apply.

How are Overtime Laws in New Mexico Different from Federal Laws?

New Mexico largely mirrors federal FLSA standards for overtime. However, some state-specific interpretations provide broader protection.

For example, certain types of paid leave—such as holiday leave, annual leave, and administrative leave for voting—count as time worked when calculating overtime for non-exempt employees in state government roles.

Additionally, compensatory time may be offered instead of cash, but only if agreed to in writing beforehand and within statutory limits.

What is the Regular Rate of Pay in New Mexico?

The regular rate of pay in Mexico includes all non-overtime earnings such as hourly wages, salary, non-discretionary bonuses, and shift differentials. For non-exempt employees, this rate is used to calculate overtime pay and must always meet or exceed the federal minimum wage of $12.00 per hour (as of the current FLSA standard).

Any additional duties performed beyond the employee’s regular schedule must be reflected in this rate.

How Much is Overtime Pay in New Mexico?

New Mexico law requires employers to pay overtime to non-exempt state employees for hours worked beyond 40 in a seven-day workweek. The rate must be at least 1.5 times the employee’s regular rate of pay.

Specifically:

Weekly Overtime: State employees must be paid 1.5× their regular hourly rate for all hours worked over 40 in a workweek.
Daily Overtime: New Mexico does not require overtime pay for working more than 8 hours in a single day, unless those hours push the total beyond 40 in a week.
Holiday Work: For state employees, if required to work on a holiday, they are compensated at 2.5× their regular rate — which includes 1× regular pay, plus 1.5× premium pay, either as cash or compensatory time.
Comp Time: Instead of overtime pay, state employees may agree in writing to receive compensatory time at 1.5× the overtime hours worked, up to 240 hours.

If you want to learn more, check out our guide on New Mexico overtime laws.

Who is Eligible for Overtime Pay in New Mexico?

Almost all employees in New Mexico are eligible for overtime, including hourly and non-exempt salaried workers. Covered employees must be paid 1.5 times their regular rate for any hours worked over 40 in a seven-day workweek.

Youth workers aged 16 and older are also eligible for overtime. Those aged 14 or 15 are subject to strict hour limits under federal law but are still entitled to overtime if they exceed 40 hours in a week.

Check out our guide on overtime rights in New Mexico.

Who is Exempt from Overtime Pay in New Mexico?

Some employees are not eligible for overtime pay due to the nature of their work or how they are paid. These exemptions include:

Executive, administrative, and professional employees earning at least $684 per week and meeting specific duty requirements
Outside sales employees who regularly work away from the employer’s place of business
Computer professionals paid at least $684 per week (or $27.63 per hour if hourly) in roles like software engineer or systems analyst
Highly compensated employees earning $107,432 or more annually who perform at least one exempt duty
Employees in agriculture or involved in the ginning of cotton
Certain salaried employees in state or local government positions
Employees under valid collective bargaining agreements with alternative overtime provisions
Administrative staff in educational institutions if paid comparably to teachers and performing academic-related duties

Note: Blue-collar workers (manual laborers), first responders (police, firefighters, EMTs), and similar roles are not exempt from overtime regardless of pay level.

For a detailed breakdown of the above, view the U.S. Department of Labor’s FLSA exemption guidelines to understand how these exemptions apply under New Mexico law.

Learn more in detail about New Mexico Salaried Employees Laws.

Overtime for Hourly Rate and Salaried Employees in New Mexico

How Do You Calculate Overtime for Hourly Employees in New Mexico?

In New Mexico, the regular rate includes the base hourly wage and certain other earnings like nondiscretionary bonuses.

To calculate overtime:

Determine the regular hourly rate (base wage, or include other earnings if applicable).
Multiply that rate by 1.5 for each hour worked beyond 40 in the same workweek.

Example:
An employee earns $18 per hour and works 45 hours in one week.

Regular Pay for 40 Hours: 40 hours × $18 = $720
Overtime Pay for 5 Hours: 5 hours × $27 ($18 × 1.5) = $135
Total Weekly Pay: $720 + $135 = $855

This example shows how overtime is calculated strictly based on hours actually worked beyond 40 in a workweek. Paid time off or holiday pay that is not worked does not count toward the 40-hour threshold.

To learn more, you can read our guide on your rights as an hourly employee in New Mexico.

How is Overtime Calculated for Salaried Employees in New Mexico?

In New Mexico, salaried employees who are non-exempt under the Fair Labor Standards Act (FLSA) are entitled to overtime pay for hours worked beyond 40 in a seven-day workweek. Even though these employees are paid a fixed salary, their compensation must still be broken down into an equivalent hourly rate to determine overtime.

Here’s how to calculate it:

1. Convert Salary to Weekly Pay: Divide the annual salary by 52 to get the weekly salary.

2. Determine Hourly Rate: Divide the weekly salary by 40 (standard full-time hours).

3. Calculate Overtime Pay: Multiply the hourly rate by 1.5 for each hour worked over 40 in a workweek.

For example, a non-exempt employee earns a salary of $1,000 per week and works 48 hours in one week.

Hourly Rate: $1,000 ÷ 40 = $25
Overtime Hours: 8
Overtime Rate: $25 × 1.5 = $37.50
Overtime Pay: 8 × $37.50 = $300
Total Weekly Pay: $1,000 (salary) + $300 (overtime) = $1,300

New Mexico does not mandate daily overtime or double time like the majority of the other states.

For more details, check out our guide on your rights as a salaried employee in New Mexico.

Overtime for Complex Pay Structures in New Mexico

How Do You Calculate Overtime for Piece Rate or Commission Employees in New Mexico?

In New Mexico, employees who are paid through piecework or commissions are still entitled to overtime pay under the Fair Labor Standards Act (FLSA), provided they are non-exempt. The state follows the federal standard method for calculating overtime by first determining the regular hourly rate from total earnings and hours worked.

Method: Total Earnings Divided by Total Hours Worked

To calculate the regular rate, total the employee’s earnings from piecework or commissions for the week and divide by the total hours worked. This regular rate is then used to determine the overtime premium for any hours worked over 40 in a seven-day workweek.

For example: an employee earns $720 in commission over a 48-hour workweek.

Total earnings: $720
Total hours: 48
Regular rate: $720 ÷ 48 = $15/hour
Overtime hours: 8
Overtime premium: 8 × ($15 × 0.5) = $60
Total compensation: $720 + $60 = $780

This method ensures that employees paid on a non-hourly basis are still fairly compensated for overtime, in line with both federal law and New Mexico statutes

How Do Holidays, Paid Leave, or Administrative Time Affect Overtime Calculations in New Mexico?

In New Mexico, certain types of paid time off must be counted as time worked when calculating overtime for non-exempt employees under the Fair Labor Standards Act (FLSA). This includes paid holiday leave, approved annual leave, and administrative leave for voting.

To calculate whether an employee is due overtime, these types of leave are added to the hours physically worked. If the total exceeds 40 hours in the designated workweek (Saturday 12:01 a.m. to Friday midnight), the excess hours qualify for overtime pay.

Let’s understand this using an example:

Hours Worked: 36 hours
Paid Holiday Leave: 8 hours
Total Hours for Overtime Purposes: 44 hours
Overtime Hours: 4 hours
Regular Rate: $18/hour
Overtime Pay: 4 × ($18 × 1.5) = $108

In this case, the employee is entitled to $108 in overtime pay because the combined total of hours worked and qualifying leave exceeded the 40-hour threshold.

Additional Considerations for New Mexico Overtime

Are there Industry-Specific Overtime Rules in New Mexico?

Yes, New Mexico overtime laws include specific rules and exemptions for certain industries and job types. These rules generally follow federal guidelines under the Fair Labor Standards Act (FLSA), but the state also recognizes additional exemptions based on employment type and work setting.

Agricultural Work: Employees in agriculture may be exempt from overtime depending on the nature of their duties. For example, workers involved in harvesting by hand or milk production may not qualify for overtime pay.
Nonprofit Residential Staff: Employees living in group homes run by nonprofits for individuals with disabilities may be exempt from overtime if specific living and job conditions are met.
G.I. Bill Trainees: Trainees under the G.I. Bill are typically not eligible for overtime.

Therefore, these exemptions mean not all employees are entitled to overtime even if they work over 40 hours. Employers must determine eligibility based on role and status to stay compliant with New Mexico labor laws.

Do Employees in New Mexico Get Extra Overtime Pay for Working on Sundays or Holidays?

No. In New Mexico, employees do not automatically receive extra pay for working on Sundays. However, if Sunday work results in more than 40 hours in the workweek, overtime rules apply, and employees must be paid at 1.5 times their regular rate for those additional hours (as required under the FLSA and state law).

As for holidays, only state employees have specific provisions: if a classified state employee is required to work on a holiday, they are entitled to 2.5 times their regular hourly rate—this includes straight time plus 1.5x holiday premium.

How can Employers Ensure Compliance with New Mexico Overtime Laws?

Employers must keep accurate records of employees’ hours and classifications to comply with both state regulations and the FLSA. This includes:

Determining whether employees are exempt or non-exempt under FLSA rules.
Recording start times, end times, breaks, and paid leave usage that counts toward overtime.
Paying overtime at 1.5x the regular rate for hours worked beyond 40 in a workweek.
Ensuring any comp time agreements (for public sector workers) are documented in writing and capped appropriately.

New Mexico also prohibits shifting workweeks to avoid paying overtime.

Important Cautionary Note

This content is provided for informational purposes only. While we make every effort to ensure the accuracy of the information presented, we cannot guarantee that it is free of errors or omissions. Users are advised to independently verify any critical information and should not solely rely on the content provided.

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