New Mexico workers win significant wage increase

Santa F.–New Mexico workers and their families celebrated on Friday after the House of Representatives and the Senate agreed to a legislative compromise reached in conference committee that will raise the state’s minimum wage for the first time in over 10 years. The proposal now heads to the governor’s desk for final signature.

A statewide minimum wage coalition mobilized hundreds of workers from across New Mexico during the session in support of a wage hike, coalescing around Rep. Miguel García’s (D-Bernalillo) $12 minimum wage bill (HB 31).

During a conference committee late Thursday night between members of the House and Senate, led negotiations in a final compromise that:

  • Gradually increases state minimum wage to $12 an hour by 2023
  • Gradually increases the “tipped credit” for tipped employees to $3 an hour by 2023
  • Allows for a new sub-minimum wage for students at $8.50 an hour
  • Does not include an annual cost of living adjustment

Below are reactions from low-wage workers and community organizations across New Mexico:

“This is a victory for New Mexico’s working families and came about as a result of years of organizing efforts lead by low-wage workers,” said Margarita Castruita Flores a member of El CENTRO de Igualdad y Derechos. “We are proud of the contributions that low-wage workers make to our State and this compromise bill is a step in the right direction for our families to obtain financial stability. There is still a lot of work ahead and we will continue to organize our communities to obtain a living wage for all workers in New Mexico.

“Workers and champions like Rep. Miguel Garcia refused to give up,” said Marcela Diaz, Executive Director for Somos Un Pueblo Unido. “By raising the minimum wage, the legislature finally recognized that workers are the backbone of New Mexico’s economy and should be compensated fairly. Getting to $12 per hour will make a big difference for our families in rural communities and local economies.”

OLÉ member Cristal Carter said, “$12/hour by 2023 is a big win for ALL hardworking New Mexico families. We fought hard for this and it shows. Families will now have the stability they need to thrive in our communities because over 200,000 workers across the state of New Mexico will receive the raise they deserve.”

“An increase in the minimum wage will mean a better living situation for the folks in our community who need it the most — people working hard, full time and still on the brink of poverty. It was more difficult than it should have been for the voices of workers to be heard at the legislature and we will continue to stand shoulder to shoulder in the fight for a living wage and true economic security for families across New Mexico,” said J.D. Mathews, State Political Director for New Mexico Working Families Party.

“This victory is the result of workers from all across New Mexico coming together to push for wages that respect their work and allow them to provide for themselves and their families,” said Stephanie Welch, a supervising attorney at the New Mexico Center on Law and Poverty. “The increase will help people who receive the lowest wages in the state finally recover some of their lost spending power. It was high time they saw a raise. The cost of living has gone up over the last 10 years, but the minimum wage stayed flat.” 

ACTION ALERT- Stop Trump’s attack on food assistance!

Federal food assistance was created to increase nutrition levels and eliminate hunger. However, a new rule proposed by the Trump administration threatens food assistance for more than 27,000 New Mexicans and 755,000 low income adults nationwide.

Federal law already requires that states limit SNAP eligibility to just three months out of every three years for unemployed and underemployed adults without dependent children unless they can document 20 hours of work a week.

Now the Trump administration has proposed to make the time limits even harsher with a rule that would prevent states from waiving these draconian time limits in areas with too few jobs.

Please tell the Trump administration to abandon this unfair rule!

New Mexico has implemented a statewide waiver of the time limits for decades because our unemployment levels have been more than 20 percent above the national average.

New Mexico has some of the highest rates of food insecurity in the United States, and SNAP has been a critical tool in addressing hunger. But counties like Catron, Cibola, McKinley, Mora, Sierra, Taos, and Torrance—with unemployment rates over seven percent—would likely no longer qualify for a waiver. The same would be true for most Native American communities in the state.

Protect food security in New Mexico and the nation by submitting your public comment! Deadline: April 2, 2019.

Submit your comment here: https://www.federalregister.gov/documents/2019/02/01/2018-28059/supplemental-nutrition-assis

Below is some content to include in your comment. To maximize its impact, make sure your comment has at least one third original text. 

Food for the hungry shouldn’t have a time limit!

  • This rule will only increase hunger. The adults who would be affected by the new rule are some of the lowest income of all SNAP participants. USDA data shows that those likely to be cut off by the time limit have average monthly income of about 17 percent of the poverty line.
  • There is no evidence that the rule increases employment or earnings, but data from states that implemented the time limit, show that the vast majority of adults simply lost SNAP benefits without finding employment.
  • Food banks and charities cannot fill the need. Roadrunner Food Bank reports that they have increased their distribution of food by 70 percent over the last ten years, but it is still not enough.
  • Losing SNAP hurts grocers and our local economies. SNAP benefits are spent at more than 1,588 authorized retailers in New Mexico, including grocers and local food retailers around the state. About $693 million of SNAP benefits were redeemed in New Mexico in 2016. The average New Mexico SNAP benefit in FY 2017 was $121. When multiplied by the 27,244 people who could lose benefits under the proposed rule, up to $3,296,524 federal dollars could leave the state.
  • New Mexico could lose more than $5.5 million in economic activity because SNAP dollars have a multiplier effect. $1.7 dollars is generated for every SNAP dollar spent.
  • Losing SNAP will mean an increase in public healthcare costs. A study published by the American Medical Association found that on average SNAP participation lowers an individual’s health care expenditures by approximately $1,447 per year.
  • The rule sidesteps Congress, which rejected these changes in the 2018 farm bill.
  • The rule is costly and difficult for New Mexico to administer. Governor Martinez attempted to implement these requirements despite New Mexico’s high unemployment. The federal court found that the state could not implement the requirements without terminating assistance to eligible adults.

More information about SNAP in New Mexico:
https://www.cbpp.org/research/food-assistance/a-closer-look-at-who-benefits-from-snap-state-by-state-fact-sheets#New_Mexico

Bill closing loopholes in small loans law awaits governor’s signature

SANTA FE—The New Mexico Senate passed a bill today cleaning up state law that regulates storefront lenders. House Bill 150, Installment & Small Loan Changes, protects New Mexico borrowers by ensuring accountability and transparency in the storefront lending industry. The bill now awaits Governor Michelle Lujan Grisham’s signature for approval.
 
“Everyone deserves fairness and transparency when taking out a loan,” said Lindsay Cutler, attorney at the New Mexico Center on Law and Poverty. “HB 150 cleans up loopholes in state law by mandating effective data reporting to the state and providing consistency so all New Mexico families can receive fairer loans.”

New Mexico’s first across the board interest rate cap went into effect in January 2018, capping interest rates on storefront loans at 175 percent APR. However, high fees and loan rollovers continue to drain income from New Mexico borrowers. The two laws that regulate storefront lenders, the Small Loan and Bank Installment Loan Acts, still contain inconsistent fee and disclosure provisions, do not require sufficient reporting to the state’s Financial Institutions Division to enforce consumer protections, and do not make clear borrowers’ rights on loan renewals.

If signed into law, HB 150 would:

Require lenders to provide effective data on small loans, enabling the FID to verify storefront lenders are adhering to small loans law and for the state to evaluate how the law is impacting New Mexicans;

  • Allow borrowers 24 hours to rescind a high-interest loan;
  • Align fee provisions and disclosure requirements so consumer protections are consistent for all borrowers;
  • Protect New Mexican borrowers from potential loopholes when they renew or rollover loans by clarifying the definition of new loans; and
  • Align the penalties for violating the small loan laws and the language around the Unfair Practice Act to ensure that companies are held accountable for unfair and deceptive and unconscionable practices.

“The small loan industry makes hundreds of millions of dollars from hardworking New Mexico families,” said Cutler. “ We need our laws to be clear of ambiguities and provide meaningful consumer protections that hold small loan companies accountable. We’re optimistic that the governor will sign the bill. Small loan reform is absolutely necessary if we hope to stop predatory lending practices.”

Bill guaranteeing basic wage protections for home care and domestic workers awaits governor’s signature

SANTA FE— Today, the New Mexico House of Representatives passed Senate Bill 85, sponsored by Sen. Liz Stefanics and Rep. Christine Trujillo, which would ensure home care and domestic workers—the people who clean homes and deliver care for others—are protected by New Mexico’s minimum wage standards and other wage protections. The bill will now go to Governor Michelle Lujan Grisham’s desk for approval.

Domestic workers have been left out of many labor protections throughout history, and typically have very few options when they’re not paid. SB 85, Domestic Service in Minimum Wage Act, ends the exemptions for domestic workers from New Mexico’s wage laws—as has already been done at the federal level.

“Domestic workers and home care workers have difficult and important jobs that we depend on,” said Stephanie Welch, supervising attorney at the New Mexico Center on Law and Poverty. “SB 85 eliminates outdated, discriminatory practices in New Mexico’s labor protections so people doing some of the toughest jobs like caring for our loved ones and cleaning our houses are treated fairly, and can seek recourse when they are not.”

New Mexico law generally requires employers to pay employees minimum wage and overtime, keep records, and pay employees in full and on time. However, like other wage laws enacted in the 1930s, it excluded large categories of work typically performed by women and people of color from the minimum wage and other protections. The New Mexico Legislature has recognized that it’s time to ensure all workers, including people who work hard in other people’s homes, are guaranteed fundamental labor protections just like everyone else.

“We are optimistic that Governor Lujan Grisham will sign SB 85 into law, guaranteeing domestic workers are no longer ignored in the eyes of the law,” said Adrienne R. Smith of New Mexico Caregivers Coalition. “Cleaning houses and taking care of elderly people or children demands dedication, time, and experience. The people who are in these life-saving roles deserve our respect and the same protections as all other workers.”

Federal law has since eliminated its exclusion of domestic workers, but without state protections, New Mexicans who work in people’s homes are not protected and may be subject to low or no pay and exploitative situations. If domestic workers were covered by New Mexico’s wage laws, the New Mexico Department of Workforce Solutions would investigate their complaints, enforce their rights, and recover their wages and damages.

Memorial to expand home visiting services passed by Senate Public Affairs Committee

SANTA FE— A memorial establishing an advisory council to develop a plan for the statewide expansion of a Medicaid-financed home visiting system in New Mexico, will head to the Senate floor following a “do-pass” vote today in the Senate Public Affairs Committee. Home visiting programs provide support and critical assistance for families that range from health care to emotional and social supports at a crucial time in a child’s brain development. Senate Memorial 117, Medicaid Home Visiting Program Council, is sponsored by Senator Linda M. Lopez.

“Every child deserves the best start from birth. Nurturing our state’s youngest children is key to ensuring they grow up healthy and prepared to succeed in life,” said William Townley, attorney at the New Mexico Center on Law and Poverty. “We’re optimistic that the memorial will pass the Senate.”

If passed by the New Mexico Senate, SM 117 would convene a council of home visiting providers and heads of the Human Services Department, Children, Youth and Families Department, Department of Health, and the Children’s Cabinet to make recommendations for expanding home visiting across the state through Medicaid financing.

Research shows that home visiting helps establish a strong foundation for families so children can grow up healthier and parents can develop stronger parenting skills. Home visiting programs that currently exist in New Mexico provide a team of professionals to help families learn about healthcare, child development, and parenting skills. Other services can include screening mothers for postpartum depression, supporting breastfeeding, and connecting families to community activities.

Unfortunately, most New Mexican families do not have access to home visiting services. Most services are offered by private non-profits that cannot scale up to meet the large unmet need in the state.

“Offering education early in a child’s life is essential in helping families succeed,” said Townley. “It would be good for everyone in New Mexico if more families could access home visiting.”

ACTION ALERT: Ask the Senate Education Committee to Support Multicultural Education

March 7, 2019

In the final stretch of this legislative session, a number of bills supporting a more inclusive education system – one that supports the diverse languages and cultures of our students – will be decided on in committee this week.

Tomorrow, the Senate Education Committee will discuss HB 111, HB 120, and HB 159, and we need you to show your support for a multicultural education system. 

We know students perform better when their materials and coursework are relevant to their identity. HB 111, HB 120, and HB 159 each provide the support our public education system needs to honor the diverse languages, heritages, and cultures of New Mexico’s students in the classroom.

Please call the Senate Education Committee members and ask them to ensure our public education system will support the education of the culturally and linguistically diverse students of New Mexico. 

More on the Issues

HB 159 “Multicultural Education Framework” is sponsored by Representatives Tomás E. Salazar, Christine Trujillo, and Derrick J. Lente.

It aligns the New Mexico Indian Education Act, Hispanic Education Act, and Bilingual Multicultural Act to establish a foundation in the public education system for supporting the education of culturally and linguistically diverse students across New Mexico.

HB 111  “Cultural and Linguistic Education Support” is sponsored by Representatives Tomás E. Salazar, Linda M. Trujillo, and Derrick J. Lente

We know that students in rural New Mexico are underserved by the public education system, despite their success being just as critical to New Mexico’s future. Funding for rural school districts and cooperatives from HB 111 will build the capacity for teachers in these areas to gain the skills necessary to teach in bilingual and multicultural classrooms.

HB 120 “Bilingual Teacher Preparation Act” is sponsored by Representatives Tomás E. Salazar, Christine Trujillo, Joy Garratt, and Derrick J. Lente

Without bilingual teachers, we cannot adequately address the needs of our English language learner students. HB 120 will increase the number of bilingual and TESOL-endorsed teachers in New Mexico by making it possible for them to receive grants to help pay for degrees or endorsements in bilingual/multicultural education or TESOL.

What You Can Do

Please call members of the Senate Education Committee and ask for their support of HB 159, HB 111, and HB 120. 

Sen. Mimi Stewart | (505) 986-4726 | mimi.stewart@nmlegis.gov
Sen. William Soules | (505) 986-4834 | bill.soules@nmlegis.gov
Sen. Michael Padilla | (505) 986-4267 | michael.padilla@nmlegis.gov
Sen. Gabriel Ramos | (505) 986-4863 | gabriel.ramos@nmlegis.gov
Sen. Bill O’Neill | (505) 986-4260 | oneillsd13@billoneillfornm.com
Sen. Candace Gould | (505) 986-4266 | candace.gould@nmlegis.gov
Sen. Craig Brandt | (505) 986-4385 | craig.brandt@nmlegis.gov
Sen. Greg Fulfer | (505) 986-4278
gregg.fulfer@nmlegis.gov
Sen. John Pinto | (505) 986-4835

House passes bill closing loopholes in small loans law

SANTA FE—The New Mexico House of Representatives passed a bill today cleaning up state law that regulates storefront lenders. HB 150 protects New Mexico borrowers and ensures accountability and transparency in the storefront lending industry.
 
“All New Mexicans deserve access to fair and transparent loans under reasonable terms, but unfortunately, the current law has loopholes that fail to carry out the legislature’s intent to protect borrowers,” said Lindsay Cutler, attorney at the New Mexico Center on Law and Poverty. “HB 150 proposes effective data reporting requirements and consistency in consumer protections for all borrowers, ensuring New Mexico families receive fairer loans and that the state can better monitor storefront lenders.”

New Mexico’s first across-the-board interest rate cap went into effect in January 2018, capping interest rates on storefront loans at 175 percent APR. Yet high fees and loan rollovers continue to drain income from New Mexico borrowers. The two laws that regulate storefront lenders, the Small Loan and Bank Installment Loan Acts, still contain inconsistent fee and language provisions, do not require sufficient reporting to the Financial Institutions Division to enforce consumer protections, and do not make clear borrowers’ rights on loan renewals.

If passed by the Senate and signed into law, HB 150 would:

  • Require lenders to provide effective data on small loans, enabling the FID to verify storefront lenders are adhering to small loans law and evaluate how the law is impacting New Mexicans;
  • Allow borrowers 24 hours to rescind a high-interest loan;
  • Align fee provisions, disclosure requirements, and penalty provisions so consumer protections are consistent for all borrowers; and
  • Define what it means to make a new loan to protect New Mexican borrowers from potential loopholes in loan rollovers and renewals.

“The small loan industry makes hundreds of millions of dollars from hardworking New Mexico families,” said Cutler. “The House has taken an important step in passing HB 150 and we are optimistic that the Senate will follow suit. We cannot allow lenders to continue to circumvent protections put in place two legislative sessions ago. Small loan reforms are absolutely necessary if we hope to meaningfully stop predatory lending practices.”

ACTION ALERT: Senate Corporations & Transportation Committee Hearing on HB31 to Raising NM’s Minimum Wage

Hardworking New Mexicans should be paid a livable wage! It’s time the state’s minimum wage is raised, including the wage for tipped workers. Join us for the 3rd Senate committee hearing on HB 31, a proposal that would increase New Mexico’s minimum wage to $12 per hour, phased in by 2022, and set the server wage at 30 percent of the regular minimum wage.

WHAT: Senate Corporations & Transportation Committee Hearing on HB31

WHEN: Tuesday, March 5th starting at 2:00 p.m.

WHERE: Room 311, the Roundhouse, 490 Old Santa Fe Trail, Santa Fe, NM 87501

                     (Make sure to arrive before 2:00 p.m. to get a seat!)

No one should be expected to work for next to nothing. Raising New Mexico’s minimum wage, for the first time in over a decade is a step in the right direction to ensure that ALL families in our state have a better future!

Can’t make it in person? Here are some ways you can still support:

Tipped workers like me deserve a raise, too

By Paloma Mexika, New Mexico Center On Law And Poverty Communications Associate
(This op-ed appeared in the Albuquerque Journal)

Every worker should be paid a livable wage, but the Albuquerque Journal would have you believe that servers will lose our entire livelihood if the minimum wage is raised. They paint a picture of restaurants without servers, and of diners ordering at counters, picking up their own food and drinks and busing their own tables.

Until very recently, I depended on tips for years. In addition to my base wage, my tips put me just above the poverty line and barely afforded me the cost of living in Albuquerque.

The minimum wage has not been changed in New Mexico for a decade, but a bill to increase it statewide is making its way through the Legislature. 

House Bill 31 would raise the minimum wage from $7.50 an hour to $12 by mid-2021 and tie further increases to inflation. It also adjusts the “tip credit” that allows employers to pay tipped employees $2.13 an hour as long as their tips bring them up to the minimum wage. HB 31 would make the tip credit 30 percent of the prevailing minimum wage.

The Journal claims that increasing the minimum wage and adjusting the tip credit will force restaurants to shut down or drastically reduce service. Really? Do opponents of the increase really advocate for a business model predicated on paying servers only $2.13 an hour out of business revenue? How do restaurants adjust when other fixed prices go up like gas, electricity, food or alcohol?

As seen in other states that have increased or removed the tip credit, the restaurant industry did not change and is healthy and expanding. When low-wage workers like myself are able to earn a livable income and have even a little bit of spending money and free time, we go out to eat and shop at mom-and-pop locally owned businesses. 

The higher wages go right back into our local economy, and as a generous tipper myself, I hope employers are paying a livable wage so that my tip is just extra for a job well done.

The Journal claims that going out to eat would suddenly become so drastically unattractive that the service industry as we know it would cease to exist if tipped employees are paid a livable wage. When 

Albuquerque increased tipped employees’ sub-minimum wage, it didn’t devastate the restaurant industry. Our tips didn’t change, and our paychecks were actually decent.

Raising the minimum wage is better for companies in the long run even if it means a slight adjustment at first. When employees earn a livable income, they don’t have to work multiple jobs, plus they have more time and energy to put into their work.

Even if there were a tradeoff in working a few less hours, I would be willing to adjust to it because at least I would know I and my counterparts throughout the state wouldn’t have to rely entirely on inconsistent tips.

No one should be expected to work for next to nothing. But oftentimes servers don’t have a choice. Shouldn’t employers share more of the responsibility to ensure everyone is paid at least the minimum?




ACTION ALERT: Fund Medicaid Buy-in plan

Please join us in contacting key members of the Senate Finance Committee (SFC) and ask them to amend House Bill 2 to include $4 million of non-recurring funds to setup a Medicaid Buy-in plan.

The Human Services Department needs the $4 million to ensure it can setup the Medicaid Buy-in plan by  January 1, 2021, which is required in the Medicaid Buy-in Act (HB 416/SB 405) moving through the Legislature.

The calls are quick and easy! A staff member for each senator will answer the phone. You’ll give them your name and ask them to tell the senator to amend House Bill 2 to include the $4 million in non-recurring funding for the Human Services Department to implement the Medicaid Buy-in.

Senator:Phone Number:
John Arthur Smith(505) 986-4365
George Muñoz(505) 986-4371
John Sapien(505) 986-4301

*Senators Campos, Candelaria, Cisneros and Rodriguez are supportive of the amendment. If you see them or want to give them a call, please thank them for their support.