By Jesse Jones, City Desk in The Paper. — Burqueño workers and small business owners could soon feel the impact in their wallets as the City Council prepares to vote tonight on an overhaul of the city’s minimum wage law. As written, the proposal would break from the state’s minimum wage base for the first time in years, tying future local raises to soaring rental costs, a move supporters say better reflects the real cost of living, while critics warn it could raise costs for employers.
Councilors have hinted that they expect amendments to be offered before a final vote which could attract support from more councilors – the four sponsors need at least 1 more vote to pass — but, as drafted, Ordinance O-26-33, sponsored by Councilors Joaquín Baca, Tammy Fiebelkorn, Nichole Rogers and Stephanie Telles, would raise Albuquerque’s minimum wage from $12 to $15 an hour and increase the tipped wage to $7.20 an hour beginning Jan. 1, 2027. Employers could continue to claim a tip credit, capped at $9 per hour. They would receive a $1-an-hour credit for workers who receive qualifying health care or child care benefits valued at $2,500 or more annually. Beginning Jan. 1, 2028, annual cost-of-living increases would be calculated using a new formula that combines inflation data with changes in local rental costs.
Supporters say the increase is needed to help working families keep up with Albuquerque’s housing costs, where rents are about 25% higher than the national average, according to the ordinance. Worker advocacy groups, including El Centro de Igualdad y Derechos, are mobilizing in support of the bill, along with national labor networks such as One Fair Wage. Olga Santana, a Workers’ Justice organizer with El Centro, told City Desk that immigrant workers make up 13% of the state’s workforce and contribute $1.9 billion in annual taxes. She called it “unconscionable” that workers are forced to choose between rent and basic needs like food or medicine. “Raising the minimum wage to $15/hr, with indexing, is a practical step that will put an additional $6,000 into the pocket of workers,” Santana said, adding that higher wages would feed money back into local economies.
The proposed formula mirrors a first-in-the-nation ordinance passed by Santa Fe, which also ties annual wage adjustments to regional rent data from the U.S. Department of Housing and Urban Development. University of New Mexico finance professor Reilly White, who analyzed data for both Albuquerque’s proposed ordinance and the measure passed in Santa Fe, told City Desk that combining inflation and local rental costs provides a more accurate picture of financial pressures facing working families. “By combining inflation data with local rental market data, policymakers can better capture both everyday price increases and the reality that housing is often the largest expense facing working families,” White said. He said the mechanism is designed to allow gradual adjustments that track real conditions rather than sudden swings. White also said a housing-linked wage adjustment could create what he called a feedback loop. As housing costs rise, labor costs could follow, giving employers a greater stake in policies that expand housing supply and improve affordability, rather than treating housing solely as a social policy issue.
The City Council will debate and vote on the ordinance at 5 p.m. tonight in the Vincent E. Griego Chambers at City Hall. Residents can also watch the meeting on Zoom, YouTube, the GOVTV website or Comcast Channel 16.