| Key areas: |
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Here are some areas of frequent labor disputes.
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| At will employment and termination |
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At-will employment means that the employer and employee have a right to
terminate their relationship at any time with or without cause. This is invalidated if the employer
implies that employees are protected by a higher standard. Avoid making statements
(written or oral) regarding job security,
anything that implies an employment contract or anything that implies that the employee
can only be terminated for specific causes. This is an area of extensive lawsuits.
New Mexico allows two exceptions to at-will employment: Public policy and implied-contract. This means that if an employee is fired for filing a workers comp claim or refusing to break a law or there is a general understanding about job security, the employer can be held for wrongful termination. |
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| Should you use employment contracts? |
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In general, no. Employment contracts invalidate at-will employment - so you can only fire someone (or an employee can only quit) if it
complies with the contract. If you have an employment contract and one party violates it, the other party can seek financial compensation. With that said, employment contracts are sometimes used if the hiring firm wants a key employee to commit to being with the company for a specific period of time, or if a key employee wants the hiring firm to commit to compensation if (s)he is dismissed within a certain period of time.
If you want to use an employment contract, it is critical that both parties work with attorneys to protect their interests.
Please note that if you use an employment contract, the person is still your employee, not an independent contractor. |
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| Can you hire workers as independent contractors? |
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Only if the person is truly in business for him/herself - and you have no RIGHT to control the worker or the work. They can
- choose to hire others to do the actual work
- choose their hours
- choose how to do the work
- work for others
Click here for more information about independent contractors.
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| Employee records |
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Unemployment records must be retained in New Mexico for a minimum period of four years. This information generally includes: name; social security number; dates of hire, rehire and termination; wages by period; Payroll pay periods and pay dates; date and circumstances of termination.
If you use independent contractors, do not
keep their files with employee records, or use any of the same forms, because they are
vendors, not employees.
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| Pay upon Termination |
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Fired employees must be paid within 5 working days; 10 days for wages paid by commission, task, or piece rates; next regular payday if suspended due to labor dispute. Voluntarily quit must be paid by the next regular payday. |
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| Fair employment |
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Don't discriminate in age (40+), race, sex, religion, national origin, physical or mental disability (including AIDS), or pregnancy. Provide equal
opportunity. Pay equal pay for equal work. Do not retaliate. Do not sexually harass. |
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| Rest and meal breaks |
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In the New Mexico there is no provision covering required rest or meal periods. |
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| Local employee protection laws? |
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Contact your city to learn about any
local employee protection laws affecting private business.
Some cities have restrictions regarding computer terminals
and some prohibit businesses from discriminating against employees
due to their appearance.
Some require you to pay sick leave. |
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