On April 7, 2021, New Mexico Governor Michelle Lujan Grisham signed House Bill 20, enacting the Healthy Workplaces Act (HWA). The law took effect on July 1, 2022, and requires private employers in New Mexico with at least one employee to provide paid sick leave to employees.
The Healthy Workplace Act (HWA) applies to all employers and employees within the state of New Mexico. Employers must provide paid sick leave to all employees, including full-time, part-time, seasonal, and temporary workers.
Paid Sick Leave Accrual & Usage
Eligible employees can accrue earned sick leave (ESL) at a rate of one hour for every 30 hours worked.
As an alternative to the accrual process, the HWA permits employers to frontload ESL by granting the full 64 hours to employees on Jan. 1 of each year (or a prorated amount for employees who begin employment after Jan. 1).
Hours worked in excess of 40 hours per seven-day work week do not accrue earned sick leave at a rate greater than one hour of earned sick leave for every 30 hours worked unless an employer chose a higher accrual rate for its employees or if required under the terms of any applicable collective bargaining agreement.
Note: If an employer has a paid time off (PTO) policy that is at least as generous as the HWA, then the employer does not need to offer additional ESL if the PTO policy provides “an amount of [ESL] sufficient to meet the accrual requirements of the Healthy Workplaces Act and that may be used for at minimum the same purposes and under the same terms and conditions.”
Paid Sick Leave Compensation
ESL must be paid at the employee’s regular rate and be paid on the same scheduled payday.
Paid Sick Leave Notices & Recordkeeping
Employers must also provide employees with an accurate year-to-date written summary of earned sick leave accrued and used at least once every calendar quarter.
Employers should retain records documenting hours worked by employees, sick leave accrued or earned by employees, and earned sick leave taken by employees. All records should be maintained for at least 48 months from the date the record was created. Employers will need to provide these records to the Labor Relations Division (LRD) of the New Mexico Department of Workforce Solutions (NMDWS) if requested.
Final Thoughts on HWA
New Mexico employers should be aware of the requirements for HWA and take action to ensure compliance. For details on how the HWA could affect your business and how to stay compliant with the HWA, contact us today.