A New Mexico employment contract establishes a relationship between an employer and an employee. It lays out the conditions of employment, such as how much financial compensation the employer will pay the employee, the duration of the employment, and any confidentiality or non-disclosure clauses the employer may wish to include.
A New Mexico contract abides by common law, as it must contain an offer, acceptance, and consideration. In terms of New Mexico’s law, this document is the agreement for the procurement of services [1] .
- Laws: Chapter 50
- Definition of Employee: According to N.M. Stat. § 50-11-2, an employee is someone who performs a service for wages or other remuneration under a contract or hire, written or oral, express or implied.
By Type
Independent Contractor Agreement
Explains the arrangement between a general contractor and a client.
Subcontractor Agreement
Defines how an independent contractor will assign services to a subcontractor.
Non-Compete Agreement
Allows an employer to ban an employee from completing work for a similar business.
Hiring in New Mexico
Before writing your New Mexico employment contract, you need to know the state labor laws and requirements, such as the minimum wage and payday frequency.
At-Will Employment
New Mexico is an at-will employment state. There are also exceptions to the at-will employment rules.
Exceptions
- Public Policy: Yes
- Implied Contract: Yes
- Good-Faith Exception: No
Minimum Wage ($/hr)
The minimum wage in New Mexico is $12.00/hour for most employees. The state’s minimum wage for tipped employees is $3.00/hour [2] .
Child Labor
Employment certificates are required in New Mexico for minors 14-16 years old.
Age certification is not required in New Mexico but is common practice that agencies will provide certification on request for minors 16 and 17 years old.
Minors under 14 are generally not allowed to work in New Mexico. The exceptions are if they are employed by a parent, as an actor or performer, or sell or deliver newspapers outside of school hours [3] .
Payday
New Mexico requires employers to pay employees at least semi-monthly. There are monthly payday requirements for executive, administrative, and professional personnel.
Meal and Rest Breaks
There are no requirements for minimum paid rest or meal periods in New Mexico.
Recordkeeping Requirements
New Mexico employers must keep records of employees’ wages and hours worked for at least one year [4] . Some other recordkeeping requirements in New Mexico include:
- Unemployment Insurance: 4 years
- Health and Safety/Workers’ Compensation: 30 years for hazardous substance records
Sample
Below, download a New Mexico employment contract template in PDF or Word format.
