The New Mexico Restaurant Association (NMRA) is calling for immediate action regarding a significant oversight in the calculation of the server wage in Albuquerque, which has persisted for the past four years. This miscalculation undermines the restaurant industry’s financial stability and raises concerns about the city’s ability to comply with its own labor laws. (Read the coverage here in the Albuquerque Journal)
Despite previous requests to align the server wage calculation with the city ordinance, the necessary adjustments have not been implemented. A recent review revealed that the posting on the city’s website continues to display incorrect information for 2025.
According to the Albuquerque city ordinance, the server wage for 2025 should be calculated at 60% of the city’s minimum wage. Therefore, with the minimum wage of $11.50, the correct server wage should be $6.90. We urge city officials to rectify this immediately to avoid further complications.
During a recent phone conversation, the City Attorney acknowledged the ongoing miscalculation, which has persisted since 2021. Our analysis indicates that the mayor and city administration have knowingly miscalculated the minimum wage ordinance, leading to an inflated local minimum cash wage for tipped workers, resulting in millions of dollars incorrectly paid by employers.
For clarity, here is a comparison of the announced minimum wage (MW) and minimum server wage (MSW) rates against what we assert to be the correct rates per the ordinance:
Year Announced MW/MSW Correct MW/MSW (per Ordinance)
2021 $10.50 / $6.30 $9.50 / $5.70
2022 $11.50 / $6.90 $10.05 / $6.05
2023 $12.00 / $7.20 $10.90 / $6.55
2024 $12.00 / $7.20 $11.25 / $6.75
While it is recognized that employees are entitled to receive the higher of the state or local minimum wage, this principle does not change the rates established by the Albuquerque ordinance itself. Bernalillo County and the City of Las Cruces have demonstrated a proper understanding of this distinction in their 2024 minimum wage poster.
It is crucial to note that if a restaurant were to miscalculate wages, it would be termed wage theft. The same standard should apply to the city. Miscalculating the server wage undermines the trust and integrity of the system meant to protect both employers and workers.
The NMRA strongly urges the City of Albuquerque to promptly rectify this situation and ensure that the correct calculation method is utilized to determine the server wage for 2025. Inaccurate calculations endanger the restaurant industry’s sustainability and call into question the city’s ability to implement and enforce labor laws effectively.
The city was sent a letter to point out their mistake before calculating the minimum wage this year but has decided to ignore this in blatant contempt of the legal requirement to do so.