Oh, New Mexico. It seems like we can only have one nice thing at a time, when it comes to the Legislature. Or maybe two. Good progress is being made with good government bills and healthcare reform.
But then…
There's the economy. Three bills concern me greatly: a five-dollar minimum wage increase, which would make us the most expensive state to create a job in the region and possibly the country; a proposal to require all public construction contractors to pay union wages regardless of whether they are unionized or not; and the freshly re-branded Paid Family and Medical Leave Act. All of these are punitive to small businesses and potential job killers.
House Bill 246 would raise the state minimum wage to $17 per hour effective in 2026, with annual increases pegged to the Consumer Price Index. That's higher than any other location currently in the United States, except for the District of Columbia, where the minimum wage is $17.50. This is a truly awful idea. New Mexico lags behind other states in the region for job creation; making jobs more expensive is stupid. Besides, the average hourly wage in the state is $28.91, well exceeding $17, much less our current minimum wage of $12.
HB 246 is a problem in search of a solution, currently awaiting its second committee hearing in the House Appropriations and Finance Committee. Let's hope the chair, Rep. Nathan Small (D-Doña Ana) doesn't find time for it.
Nearly as troublesome is House Bill 6. The Public Works Minimum Wage Act essentially establishes wage determination rates for any public works projects in the state. The legislation itself is odd. Wage determination rate contracts are based on the Davis-Bacon Act and rates are set by the Department of Labor based on collective bargaining agreements. Neither the Davis-Bacon Act nor the Department of Labor are mentioned in HB 6. Surely this is the intent of HB 6? No matter how poorly written, this will raise the cost of public works contracts across the state, putting a strain on rural communities who may find themselves paying the same price as major metro areas for labor. HB 6 has passed the House and is awaiting its first Senate hearing in the Tax, Business and Transportation Committee, chaired by Sen. Carrie Hamblen (D-Doña Ana).
House Bill 11, the Welcome Child and Family Wellness Leave Act, formerly known as the Paid Medical and Family Leave Act, has passed its second committee by a single vote and is headed to the House floor for a vote. HB 11 is a payroll tax, with employees contributing .2% and employers .15% of employee paychecks as premium payments. The payments would fund paid leave up to 12 weeks per year per employee for new parents, and six weeks per year for those with serious health conditions or acting as caregivers.
As a small business owner, my primary concern is, frankly, getting work done. My salaried employees received five weeks of paid time off for personal time and holidays. An additional six or twelve weeks leaves gaps I cannot fill easily. The exemption for businesses with paid leave programs does not offer bridge programs for firms like mine. HB11 is a small business killer.
Many thanks to Rep. Luis Terrazas (R-Catron, Grant & Hidalgo) who shared with me his concerns about the anti-business legislation and inspired my research. The Republican caucus will need the help of pro-business Democrats to defeat these bills. HB 246, the worst bill, might not make it out of committee. HB 6 is progressing the fastest but could still be tabled in the Senate. HB11 has struggled in the past and seems to have the same resistance this year.
There's still runway left, but as is always the case with the New Mexico Legislature, time passes quickly. My fingers are crossed that public safety, healthcare reform and good government will eat up the agenda that remains.
Merritt Hamilton Allen is a PR executive and former Navy officer. She appeared regularly as a panelist on NM PBS and is a frequent guest on News Radio KKOB. A Republican for 36 years, she became an independent upon reading the 2024 Republican platform. She lives amicably with her Democratic husband north of I-40 where they run one head of dog, and one of cat. She can be reached at
