New Mexico's OT Rules Trap: Avoid $2k Holiday Payroll Overpayments This Season

Construction crews in Albuquerque—holidays are here, but so is the overtime (OT) trap. New Mexico follows FLSA: 1.5x pay for hours over 40/week, no daily limit. But with NM's minimum wage at $12/hour (2025), a 10-hour holiday Saturday push? That's $180 OT for one worker—x10 crew = $1,800 hit if miscalculated. Worse: Recent FLSA tweaks blocked the salary exemption hike (stuck at $844/week for execs), so more of your foremen qualify for OT. Miss it? Fines up to $2k per violation.

Holidays blur workweeks, and "comp time" only flies for public sector. Private crews? Straight OT cash. Common blow-up: Defining your workweek wrong. NM says fixed 168 hours (e.g., Sun-Sat)—shift it mid-year, and back-pay bites.

3 Safeguards for Your Payroll:

1. Lock Your Workweek: Document it in contracts (e.g., Mon-Sun). Track via Toggl or QuickBooks—auto-flag OT over 40. Saved my old firm $3k in Q4 audits.

2. Exemption Check: Only exempt if $844+/week and managerial duties. Your site leads? Probably OT-eligible. Audit now—NM DOL spot-checks construction.

3. Holiday Scheduling Hack: Batch OT into low-wage weeks. Forecast in my cash flow tool: "Nov: +$2k OT buffer." NM requires records 3 years—keep 'em digital.

No changes hit Oct 2024 (that was a red herring—FLSA is steady), but 2025's inflation bump could nudge min wage to $12.50. Stay ahead. As your landscaping bookkeeping services NM pro, I optimize payroll monthly.