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Wage Theft Information

What you should know about your rights as an employee with regard to your pay for all hours worked.

Wage theft refers to employers failing to pay workers the pay they’ve legally earned. Common forms of wage theft include:

  • Paying less than minimum wage
  • Not paying overtime
  • Withholding final paychecks
  • Taking illegal deductions
  • Taking tips from tipped workers
  • Misclassifying workers to avoid pay obligations

These practices are illegal under New Mexico and federal labor law. Federal law (Fair Labor Standards Act) and New Mexico’s Wage Payment Act and Minimum Wage Act require full, timely payment for work performed. Victims can recover unpaid wages, interest, and sometimes penalties.

Wage Theft Trends in New Mexico

A 2024 Rutgers University study on wage theft statewide — including Albuquerque — found:

  • Nearly 20,000 low-wage workers were paid below minimum wage each year on average.
  • New Mexico workers lost an estimated $300 million to minimum wage violations in just 2021–2022.
  • Over the last 20 years, that total is about $1.3 billion in stolen wages.
  • Violations disproportionately affect younger workers, part-time workers, workers without a high school diploma, and women of color.

State Enforcement

The New Mexico Department of Workforce Solutions (DWS) enforces wage and hour laws in New Mexico. Its Labor Relations Division accepts wage theft complaints and investigates alleged violations of the Wage Payment Act and Minimum Wage Act, including unpaid wages, overtime violations, and minimum wage underpayments. Employees can file wage claims (often online or in person) with documentation such as pay stubs or timesheets. State news releases report cases where wage theft claims resulted in significant collections (e.g., ~$100,000 awarded in a 2022–2024 case for unpaid straight and overtime wages).

Key Takeaways

  • Wage theft is recognized as a significant problem affecting many workers in Albuquerque and across New Mexico.
  • There are real enforcement tools — wage claim filings, state and federal investigations, and civil penalties.
  • Historical lawsuits against employers in Albuquerque show successful recovery of stolen wages when cases are pursued.
  • State agencies and federal partners continue to enforce wage laws, but enforcement capacity and backlog issues have been noted.

If you or someone you know is dealing with suspected wage theft, reporting to the New Mexico Department of Workforce Solutions and/or the U.S. Department of Labor’s Wage and Hour Division is the standard way to initiate an investigation and seek recovery of unpaid wages.