Albuquerque Tipped Wage: $7.20/hour with a unique benefits credit option.
Albuquerque's minimum wage ordinance includes a significantly higher tipped wage than the state standard and introduces a novel benefits credit provision. Employers can pay a reduced minimum wage of $10.85/hour if they provide healthcare or childcare benefits valued at $2,500 or more annually, an option unique within New Mexico's local wage laws.
Albuquerque Tipped Wage & Benefits Credit
Ensures tipped employees receive a higher local minimum wage and provides an alternative minimum wage for employers offering substantial benefits.
What those rules do as a New Mexico shift is created.
Teambridge automatically processes Albuquerque's unique wage requirements, ensuring tipped employees are paid correctly and recognizing employer-provided benefits where applicable.
Tipped Wage Floor Enforcement
For employees in Albuquerque designated as tipped, Teambridge ensures their base hourly wage meets or exceeds the local $7.20/hour standard, irrespective of tips received. This is significantly higher than the state's $3.00/hour tipped wage.
Benefits Credit Application
If an employer opts into the Albuquerque benefits credit program and provides qualifying healthcare or childcare benefits (valued at $2,500+ annually), Teambridge applies the reduced minimum wage of $10.85/hour for non-tipped employees, provided it exceeds the state minimum.
State vs. Local Minimum Wage Override
Teambridge cross-references the Albuquerque general minimum wage ($11.85/hour in 2026) with the statewide minimum wage ($12.00/hour). For non-tipped employees not receiving the benefits credit, the higher state minimum wage of $12.00/hour will always apply in Albuquerque.
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Albuquerque's Minimum Wage Ordinance specifies unique provisions for tipped employees and a benefits credit option.
The City of Albuquerque's Minimum Wage Ordinance (Section 9-2-2 et seq. ROA 1994) establishes a local minimum wage that, in certain aspects, exceeds the New Mexico statewide minimum wage. Notably, it sets a higher tipped wage and includes a benefits credit provision, allowing employers to pay a reduced minimum wage if significant health or childcare benefits are provided.
Albuquerque Minimum Wage Ordinance, Section 9-2-2(C) - Tipped Employees:
"Every employer shall pay to each employee who customarily and regularly receives more than thirty dollars ($30.00) a month in tips a minimum hourly wage of seven dollars and twenty cents ($7.20) per hour. If the employee's tips combined with the employer's direct wage of seven dollars and twenty cents ($7.20) per hour do not equal or exceed the applicable minimum wage rate (which is $11.85 or $10.85 with benefits credit), the employer shall make up the difference."
Albuquerque Minimum Wage Ordinance, Section 9-2-2(D) - Benefits Credit:
"An employer may pay a reduced minimum wage of ten dollars and eighty-five cents ($10.85) per hour to an employee if the employer provides health insurance or childcare benefits to the employee that are valued at two thousand five hundred dollars ($2,500.00) or more annually."
Key Provisions for Tipped Employees
Albuquerque mandates a direct cash wage of $7.20 per hour for tipped employees, a substantial increase over the New Mexico state tipped wage of $3.00 per hour. Employers must ensure that the combination of this direct wage and tips received totals at least the full applicable minimum wage (either $11.85 or $10.85 with benefits credit). If the combined amount falls short, the employer is responsible for making up the difference to reach the full minimum wage.
Benefits Credit for Non-Tipped Employees
The ordinance provides a unique benefits credit option. For non-tipped employees, if an employer provides healthcare or childcare benefits with an annual value of $2,500 or more, the employer may pay a minimum hourly wage of $10.85. However, it is crucial to note that the New Mexico statewide minimum wage of $12.00 per hour (as of 2023 and continuing into 2026) supersedes Albuquerque's general minimum wage of $11.85 per hour and the benefits credit minimum of $10.85 per hour. Therefore, for most non-tipped employees, the state minimum wage of $12.00/hour will apply, unless the employer is utilizing the benefits credit and the employee is earning $10.85, and the state's minimum wage is otherwise covered.
Teambridge ensures Albuquerque's unique wage rules are always applied correctly.
Teambridge's compliance engine is pre-configured with Albuquerque's specific tipped wage and benefits credit rules, automating complex calculations and ensuring adherence to local and state wage floors.
Automatic Tipped Wage Floor
Teambridge identifies employees classified as tipped in Albuquerque and automatically applies the $7.20/hour direct wage, flagging any schedules or payroll entries that fall below this local minimum.
Smart Benefits Credit Application
If an employer has configured the benefits credit option in Teambridge, the system will apply the $10.85/hour minimum wage for eligible non-tipped employees, verifying that the employer meets the $2,500 annual benefit value threshold.
Higher Wage Precedence
For all employees, Teambridge continuously compares the calculated local minimum wage (including the general $11.85, benefits credit $10.85, and tipped $7.20) against the statewide $12.00 minimum wage, always defaulting to the highest applicable rate.
Ensuring Full Minimum Wage
Teambridge monitors tipped employee earnings, ensuring that the combination of the direct $7.20/hour wage and reported tips meets the full applicable minimum wage (either $11.85 or $10.85 with benefits credit), automatically calculating any necessary employer "tip make-up" for compliance.
People also ask.
What is the current tipped minimum wage in Albuquerque?
As of 2026, the direct cash wage for tipped employees in Albuquerque is $7.20 per hour. This is significantly higher than the statewide tipped minimum wage of $3.00 per hour. Employers must ensure that the combination of this direct wage and tips received equals or exceeds the full applicable minimum wage.
How does the Albuquerque benefits credit work?
The Albuquerque benefits credit allows employers to pay a reduced minimum wage of $10.85 per hour to non-tipped employees if they provide health insurance or childcare benefits valued at $2,500 or more annually. However, it's crucial to remember that the New Mexico statewide minimum wage ($12.00/hour) generally supersedes this rate for non-tipped employees, as employers must pay the higher of the two applicable minimum wages.
Does the state minimum wage affect Albuquerque's local wage laws?
Yes, the New Mexico statewide minimum wage of $12.00 per hour (since 2023) generally supersedes Albuquerque's general minimum wage of $11.85 per hour and its $10.85 benefits credit minimum for non-tipped employees. Employers are always required to pay the higher of the applicable local, state, or federal minimum wages.
What benefits qualify for the Albuquerque benefits credit?
The Albuquerque ordinance specifies that the benefits credit applies if an employer provides health insurance or childcare benefits to the employee that are valued at two thousand five hundred dollars ($2,500.00) or more annually.
What happens if a tipped employee's wages and tips don't meet the minimum wage?
If a tipped employee's direct hourly wage of $7.20 combined with their tips does not reach the full applicable minimum wage (which would be $11.85 or $10.85 with benefits credit, though often superseded by the state's $12.00), the employer is legally obligated to make up the difference to ensure the employee receives at least the full minimum wage for all hours worked.
Is the Albuquerque minimum wage indexed to inflation?
No, unlike some other local ordinances in New Mexico (e.g., Las Cruces), the City of Albuquerque's minimum wage ordinance does not include automatic annual adjustments based on the Consumer Price Index (CPI). Any changes to the minimum wage rates would require an amendment to the ordinance by the City Council.