A New Mexico employment contract is an agreement made between an employer (can be an individual or business entity) and the individual they are hiring for a particular position. The contract covers important terms such as the employee’s duties and responsibilities, period of employment, compensation, benefits, vacation time, and personal leave.
Businesses are not required to use employment contracts to hire individuals, but having their employees sign this contract establishes an understanding between the parties with regard to the employee’s role, the employer’s obligations and rights, and the disciplinary process implemented by the company. The contract also allows the employer to institute a non-compete agreement with the employee if they feel the knowledge gained during their employment could be applied to competitors of the company before or after termination.
Independent Contractor Agreement – A contract between a client and an independent contractor.
Subcontractor Agreement – A written agreement between a contractor and a subcontractor.
- Labor Statutes: Chapter 50
- Definition of Employee: § 50-11-2(A)
- Minimum Wage: $10.50/hr ($11.50/hr starting Jan. 1, 2022) (§ 50-4-22(A))
- Overtime: Employee shall receive one and a half (1 ½) times employee’s regular hourly rate for all hours worked after forty (40) hours in a week (§ 50-4-22(D)).
- Record Keeping: Employers must keep a record of each employee’s wages and hours for at least one (1) year (§ 50-4-9(A)).
Permitted? Yes, New Mexico is an employment-at-will state; employers and employees can end the employer-employee relationship at any time and for any reason (aside from discriminatory reasons and those mentioned below). However, there a number of laws that prohibit employers from firing employees for specific reasons:
- Minimum Wage Act claim (§ 50-4-26.1)
- Health and safety complaint (§ 50-9-25(A))
- Caregiver leave (§ 50-16-3(B))
- Worker’s compensation claim (§ 52-1-28.2(A))
- Occupational disease disablement benefits (§ 52-3-45.2(A))
- Income withholding (§ 40-4A-8(D))
- Jury duty (§ 38-5-18)
- Military service (§ 20-4-6)
- Dee Johnson Clear Indoor Air Act (§ 24-16-19)