Legislation prevents employers from deducting credit card processing fees from employees' tips

Santa Fe, N.M. – Today, the House Labor, Veterans' and Military Affairs Committee voted unanimously to advance House Bill 22, which would amend the Minimum Wage Act to close a loophole that allows for credit card fees to be deducted from tipped income.

House Bill 22 prohibits employers from deducting credit card processing fees from the amount of tips paid to service employees. This means that when a customer tips by credit card, the employer must pay the employee the full amount of the tip.

"As state lawmakers, we want to make life better and more affordable for hardworking New Mexicans and their families," said lead sponsor Rep. Art De La Cruz (D-Albuquerque). "That starts with making sure folks can keep more of the wages they rightfully earned."

HB 22 will now go to the House Commerce and Economic Development Committee. Additional sponsors of the bill includeRepresentatives Yanira Gurrola (D-Albuquerque), Joshua Hernandez (R-Rio Rancho), and Patricia Roybal Caballero (D-Albuquerque).

Members of the public are welcome to attend floor sessions and committee meetings at the New Mexico Roundhouse, and can tune in virtually through the New Mexico Legislature's Webcasts tab. Public comment can also be provided in-person, and via phone or Zoom as directed on the daily schedule.