New Mexico Overtime Laws

April 20th 2026

Overtime laws are an essential component of New Mexico labor laws, ensuring employees are fairly compensated for extra work hours. Under New Mexico overtime laws, eligible employees must receive overtime pay for hours worked beyond the standard 40-hour workweek.

This guide explains overtime laws in New Mexico, including who qualifies, how overtime pay is calculated, and key exemptions, whether you’re an employer ensuring compliance or an employee protecting your rights.

New Mexico Overtime Laws Summary

New Mexico overtime law Overtime applies for hours worked over 40 in a 7-day week at 1.5x the employee’s regular pay rate
New Mexico minimum wage $12.00 per hour
Minimum overtime rate $18.00 per hour
Comp time Not allowed
Salary threshold for overtime exemption $684 per week

This Article Covers

New Mexico Overtime Rates

Under overtime laws New Mexico, employees who work more than 40 hours in a workweek must receive overtime pay at time-and-a-half (1.5x) their regular rate.

Employees cannot waive their right to overtime pay in New Mexico.

Since the NM minimum wage is $12 per hour, the minimum overtime rate is $18 per hour. However, some cities and counties, such as Albuquerque, Bernalillo, Las Cruces, and Santa Fe, have different local minimum wages, which also impacts their overtime rates.

You can quickly estimate overtime earnings using our free overtime calculator.

Overtime Entitlement in New Mexico

According to NM overtime laws, overtime pay is required for all non-exempt employees.

Employees earning below $684 per week (or $35,568 annually) and working in a non-exempt industry are generally eligible. However, overall eligibility for overtime pay depends on what your job duties are and what type of business you are in.

Learn more in our guide on overtime rights in New Mexico.

Compensatory Time in New Mexico

Under New Mexico overtime laws, employers cannot offer comp time instead of overtime pay. Employees must be paid 1.5 times their regular hourly rate for each overtime hour worked in a week.

Overtime for Tipped Employees in New Mexico

For tipped employees in New Mexico, the overtime rate is calculated at 1.5 times their regular wage for every hour worked beyond 40 hours in a week.

Tipped employees (earning over $30 a month in tips) in New Mexico are subject to a lower minimum wage set at $3 per hour. Employers can claim a tip credit of up to $9 per hour for these tipped employees.

However, the employee’s total wage, including tips, cannot be less than the New Mexico minimum wage of $12 per hour. If the total wage, including tips, falls short of the regular tipped minimum wage, the employer must make up the difference.

When calculating overtime pay for tipped employees in New Mexico, the tip credit cannot be factored in. Employers must use the entire minimum wage of $12.00 to determine the overtime pay rate for tipped employees.

Overtime for Salaried Employees in New Mexico 

In New Mexico, only certain salaried employees have the right to receive overtime pay. A salaried employee is an individual who receives a predetermined salary, regardless of the actual hours worked. This means that even if they work more than the hours their salary compensates for, they are still entitled to additional compensation for their extra hours.

To determine a salaried employee’s overtime rate, an employer must first determine the employee’s hourly rate by dividing the salary by the number of hours that the salary compensates for.

Then, take the hourly pay rate to calculate the overtime pay for salaried employees using the following formula:

Overtime pay = Hourly pay rate x Overtime rate (1.5) x Overtime Hours

If an employee’s salary covers fewer than 40 hours, they will receive straight time pay for all hours worked up to 40. Overtime applies only after 40 hours at 1.5 times the regular pay rate.

If an employee’s salary covers 40 hours in a workweek, overtime applies for any hours over 40.

See our guide on salaried employee rights in New Mexico and New Mexico salaried employee laws.

Overtime for Commissioned Employees in New Mexico

Commissioned employees are also covered under New Mexico overtime laws.

If an employee receives weekly commissions, the commission will be combined with the employee’s weekly wage to get the total earnings for the week. The amount is then divided by the total number of hours worked in the week to determine the regular hourly rate for that week.

For any hours worked beyond 40 per week, the employee must be paid additional compensation at a rate of half of the regular hourly rate.

Learn how to calculate overtime pay in New Mexico based on hours worked, hourly rate, and commission earned.

Overtime Exemptions in New Mexico

As per federal regulations, certain categories of employees, known as white-collar workers, are excluded from overtime pay requirements. These categories include administrative workers, executives, professionals, and outside salespeople, who are earning at least $684 per week.

Other exempt categories under the New Mexico overtime laws include:

  • Employees engaged in the ginning of cotton
  • Certain agricultural workers
  • Professional, administrative, executive, and outside sales employees
  • Employees of the U.S. government, the state, or local governments
  • Certain educational, charitable, religious, or nonprofit organization employees
  • Salespeople or workers paid by piecework, flat rate, or commission
  • Registered apprentices and learners covered by law
  • Workers age 18 or younger who are not enrolled in school or training programs
  • G.I. Bill trainees while in training
  • Seasonal employees at youth camps or retreats
  • Agricultural workers under specific conditions
  • Livestock workers
  • Employees handling, drying, packing, processing, or canning farm products in their raw state

Penalties for Unpaid Overtime Claims in New Mexico

In New Mexico, employees who have not been paid overtime premiums can file a wage claim with the New Mexico Department of Workforce Solutions (NMDWS).

Employers who underpay wages and overtime premiums under New Mexico’s Minimum Wage Act may face penalties, such as:

  • Payment of unpaid or underpaid wages plus interest
  • An additional penalty equal to twice the owed wages
  • Cost of the lawsuit
  • Reasonable attorney fees

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.