NEW MEXICO (KRQE) – New Mexicans earning minimum wage could soon see a much bigger paycheck if one lawmaker’s proposal passes. Lawmakers are presenting a bill that would raise the wage by five dollars, making minimum wage in the state $17 an hour.
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If this bill were to pass this session, it would be the biggest minimum wage increase in years. The Democratic bill was debated in committee on Thursday and received a lot of pushback from the business community. “It’s a huge additional cost for businesses and their overhead,” said Bill Lee, CEO of Gallup-McKinley County Chamber of Commerce.
A new minimum wage bill is making its way through the legislature, drawing support from labor advocates, but raising concerns from business groups. Rep. Patricia Caballero (D-Albuquerque), is sponsoring the bill. “It will address the high inflation rates that we’re experiencing which is costing our hard-working families an additional cost that were unexpected,” said Rep. Patricia Caballero.
The new wage would take effect in January of next year. It would also include automatic increases in subsequent years, adjusting for rising costs according to the consumer price index. The bill drew a long lineup of opponents during its first hearing in the Roundhouse who say the increase is too much too fast.
“An increase like this that’s over 40 percent all at once, no business can really afford to sustain that or take that kind of hit and so that gets passed on to the consumer. And so, while the dollars on your paycheck may be bigger, they certainly aren’t going to go as far,” said Lee.
“We would be happy to discuss a reasonable increase with an annual CPI increase but this bill goes too far. we desperately ask that you oppose this bill,” said Carol Wight, CEO of New Mexico Restaurant Association.
Meanwhile, others disagree. “We support this bill because work should pay at least enough that workers can meet their basic needs, and minimum pay is a minimum protection that should apply to all workers. The current minimum wage is too low,” said Emma O’Sullivan, New Mexico Center on Law and Poverty.
Right now, some New Mexico cities have higher rates than the state minimum. This change would exceed those. For instance, in Santa Fe, which already adjusts for inflation, the minimum wage is currently $14.60.
The bill passed its first committee. It still has to clear another committee and the House floor before heading to the Senate.