New Mexico Tipped Minimum Wage
Posted by Tamara
Minimum wage for tipped workers in New Mexico is $2.12. The current federal minimum wage for tipped employees is $2.13 per hour. For an employee to be considered a tipped employee, he or she must regularly receive tips that total at least $30 per month. Some states have established state minimum wage standards, which are different from the federal minimum wage.
Salaried managers are prohibited from sharing in the tips received by tipped workers. However tipped workers may share tips between other service hourly employees.
Many establishments have a policy established which provides for all servers to share their tips. This practice generally known as “tip pooling” is valid if it is done properly. Once again, salaried managers should not share in the pool. The practice is sometimes implemented during “off seasons” when overall tip income is down. This helps to balance out the unevenness of tips that can occur based upon service station assignments.
Service charges which the employer adds on to a customer’s bill is not considered a tip. The charge must be included in the employer’s accounting of overall gross income and therefore the employer is paying tax on the service charge. The employer may elect to share a portion, or all, of the service charge with tipped employees, but the option lies with the employer. Service charges are routinely added to large groups by restaurants and other service establishments.
Servers who are tipped workers are also allowed to “tip out” or share their tips with other service providers. A bartender or bus person might be the recipient of a portion of a server’s tips. Some establishments have a set policy for the percentage of each tip that a bartender or a bus person will receive. This practice helps to promote better working relationships between the servers and others who provide services that help a server receive more tips. As with previous practices, salaried managers should not participate in the tip out policy.
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