2025 Legislative Update #3
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KEY ISSUES AFFECTING YOUR BUSINESS
- PAID FAMILY & MEDICAL LEAVE
- MINIMUM WAGE INCREASE
- WORKERS COMP INCREASED COST
The Gallup McKinley County Chamber remains at the front lines to advocate for smart business and community friendly policies and legislation. Bills like HB 19 “The Trade Ports Development Act”, Senate Bill 29 “Water Project Fund”, and HB 52 the “Rural Health Care Tax Credit” are three examples of smart legislation that will be of benefit to Commerce – Collaboration – and Community. They bring economic development through key partnerships, build critical infrastructure, and will help improve access to health care.
We are also in a fierce fight to stop legislation that will only further serve to drive up costs, lead to tax increases on employees and employers, and drive economic development from our state.
PAID FAMILY MEDICAL LEAVE
As we have noted here in recent weeks, Paid Family & Medical Leave HB 11, has many negative impacts for all New Mexicans. For starters:
- The scope of the bill allows such a large amount of leave - three months - for such a wide range of reasons, for such a wide range of people, will create incredible instability and administrative challenges in the workplace.
- The bill imposes a new ever increasing burdensome tax on both employers and employees at a time when the state is flush with cash.
- Creates a new massive state bureaucracy.
BIGGEST PROBLEM? FILLING IN FOR ABSENT EMPLOYEES!
A new point to consider really compounds this problem now and into the future of our workforce. Think about not only the additional cost for our school district (in round numbers, about $500 million dollars, money that would have to be made up most likely through your tax dollars) but, also consider the cost in lost learning for our students from have extended hours in the classroom with substitute teachers. We are already struggling to fill the learning gap created by Covid, and this bill will only serve to drive lost learning and it’s negative impacts to even higher levels.
WHERE ARE WE NOW?
For now, the bill is “stuck” waiting to be scheduled in its next committee, House Commerce and Economic Development. There is much speculation that the sponsor of bill does not have the votes to pass it out of the committee and may be working on amendments. We are inclined to believe this is the case, otherwise the bill most likely would have been heard in the committee and moved to the House floor. Being “stuck” is good for now…but we are mindful that this could change very quickly. We are watching and will keep you apprised.
MINIMUM WAGE INCREASE... AGAIN?!
On Thursday (02/13/25) Representative Patricia Roybal Caballero (D-Bernalillo) will have her first committee hearing in House Labor and Military Affairs. Trust us when we tell you that despite its proximity to Valentines Day this no Sweetheart Deal for Businesses or their employees.
House Bill 246 (HB 246) seeks to raise the minimum wage to $17.00 per hour and then increase it annually based on the Cost-of-Living index (CPI). Strange how the bill will not allow for a decrease if the CPI moves downward…it can only go up!
It is proven that minimum wage increases force businesses to cut back employee hours, or cut jobs (think about the kiosks in fast food or self-checkout stations). The added cost in overhead in business is passed onto the consumer…so while you may see your paycheck increase, the dollars simply won’t go as far.
We will testify on Thursday against the bill…but we aren’t holding our breath. We are pretty sure this first committee will give it a sweet valentine kiss and a “Do Pass”.
WORKERS' COMP ATTORNEY FEE INCREASE STALLED FOR NOW
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Another very unfriendly bill to small business is moving through the House. House Bill 66, Worker's Compensation Attorney Fees & Discovery Cost Increases, sponsored by Rep. Pamelya Herndon (D-Bernalillo) will add costs and additionally burden our business community.
The bill was scheduled in House Judiciary this past Saturday but was “rolled’ for another day. This is hopefully an indication that the bill has problems that need to be addressed. The truth of the matter is that Workers Comp has been decreasing in recent years, what New Mexico has, while not perfect, is working. “If it ain’t broke…”
HB66 is rife with unintended consequences, and the Chamber stands in strong opposition.
BILLS WE ARE CURRENTLY TRACKING