Prevailing Wage and Davis-Bacon Compliance in New Mexico
eMars provides certified payroll and compliance solutions tailored primarily for federal projects and select state jurisdictions. While many agencies accept the standard WH-347 form, some states will require their own form. For questions about supported jurisdictions, please contact our team directly.
Components of Wage Determinations
Both federal and state wage determinations in New Mexico include:
- Basic Hourly Rate: The minimum hourly amount paid directly to workers for a specific job classification, excluding fringe benefits. For federally funded projects, this rate is set by DOL through local wage surveys. For NM public works, NMDWS sets the rate from the collective bargaining agreements in the locality.
- Fringe Benefits: Health insurance, pensions, paid leave, or other benefits paid on top of the basic rate.
- Total Hourly Rate: The sum of the basic hourly rate and fringe benefits.
For example, if the basic hourly rate is $25 and fringes are $5, the total is $30. Workers must receive the full $30 in cash wages if the contractor does not provide fringe benefits, or a combination of basic wage and bona fide benefits totaling $30 per hour worked. NMDWS also publishes separate Subsistence, Zone, and Incentive Pay rates that may apply on top of the standard rate.
Compliance for Contractors and Subcontractors
Contractors and subcontractors working on public works projects in New Mexico must:
Determine Applicable Wage Rates
Determine Applicable Wage Rates
Submit Certified Payroll Reports
Submit Certified Payroll Reports
On NM public works, submit certified payrolls and a signed fringe benefit disbursement statement to the contracting agency monthly, and produce them to NMDWS within 10 business days of a request. On federally funded projects, file Form WH-347 weekly with the contracting agency.
Handle Fringe Benefits
Handle Fringe Benefits
Provide bona fide fringe benefits or pay the equivalent value as additional cash on top of the basic hourly rate. Total compensation must equal at least the basic rate plus the fringe rate on the applicable NMDWS or SAM.gov determination.
Post Wage Determinations On-Site
Post Wage Determinations On-Site
Post the prevailing wage and fringe benefit rates, including subsistence and zone pay where applicable, in a prominent and easily accessible place at the site of the project.
Maintain Accurate Records
Maintain Accurate Records
Keep payroll records, including hours worked, classifications, wages, and fringe benefits, and make them available to NMDWS or the contracting agency. Federal Davis-Bacon recordkeeping runs three years after the prime contract is completed and requires worker telephone and email contact information on DOL request.
Penalties for Non-Compliance
Failure to comply with prevailing wage laws in New Mexico can result in:
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- Mandatory Termination of the contractor's right to proceed with the work, which the contracting agency must impose within 30 days of the director's determination if there is no voluntary resolution
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Administrative Fines, increased by the 2020 amendment that also established a structured complaint resolution process
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Loss or Denial of Labor Enforcement Fund registration, disqualifying the contractor from bidding on future NM public works
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Back Wages and fringe benefits owed to underpaid workers
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Withholding of Contract funds by the contracting agency to cover underpayments
Unique Aspects of New Mexico's Prevailing Wage System
- Four Rate Schedules by Construction Type: NMDWS publishes prevailing wage rates in four separate schedules: Type A (street, highway, utility, or light engineering), Type B (general building), Type C (residential), and Type H (heavy engineering), plus a Subsistence, Zone, and Incentive Pay schedule, so the applicable rate depends on both project type and locality.
- Labor Enforcement Fund Registration via PWAA: Contractors and subcontractors must hold a valid LEF registration before bids are due and through the duration of the project, handled through NMDWS's online Public Works and Apprenticeship Application (PWAA) system.
- Energy Transition Act Apprenticeship Requirement: Under NMSA 1978 § 62-13-16, construction of certain electricity generation or transmission facilities for New Mexico retail customers requires use of apprentices from a registered program, with the general contractor required to submit a Compliance Plan to NMDWS.
Relevant Resources
- Davis-Bacon Wage Determinations: SAM.gov
- New Mexico Department of Workforce Solutions - Public Works
- DOL Form WH-347 (Revised January 2025)
- U.S. Department of Labor Wage and Hour Division: Davis-Bacon and Related Acts
- Updating the Davis-Bacon and Related Acts Regulations - DOL Final Rule
For the most accurate and current information on prevailing wage requirements, consult the U.S. Department of Labor or your state's Department of Workforce Solutions website.
New Mexico Prevailing Wage FAQs
Does New Mexico have a state-specific prevailing wage law?
Yes. The Public Works Minimum Wage Act (NMSA 1978, §§ 13-4-10 to 13-4-17) applies to state and locally funded public works projects in excess of $60,000, plus projects financed through municipal or county industrial revenue bonds since the 2025 amendment took effect on June 20, 2025. Contractors must pay the prevailing wage and fringe benefit rates set by NMDWS and maintain a valid Labor Enforcement Fund (LEF) registration under NMSA 1978 § 13-4-13.1 before bids are due. For federally funded projects, the Davis-Bacon Act also applies.
How are prevailing wage rates determined in New Mexico?
NMDWS sets New Mexico prevailing wage and fringe benefit rates from the collective bargaining agreements that govern predominantly similar classes of laborers and mechanics for the locality and crafts involved. Under the 2022 amendment, rates are published annually by October 1 to take effect the following January 1. NMDWS publishes four rate schedules by construction type (Type A, B, C, and H), plus a separate Subsistence, Zone, and Incentive Pay schedule. For federally funded projects, the U.S. Department of Labor sets rates through local wage surveys, published on SAM.gov.
What are the penalties for non-compliance with prevailing wage laws in New Mexico?
Penalties include back wages and fringe benefits owed to underpaid workers, withholding of contract funds by the contracting agency, administrative fines increased by the 2020 amendment that also created a structured complaint resolution process, and mandatory termination of the contractor's right to proceed with the work, which the contracting agency must impose within 30 days of the director's determination if there is no voluntary resolution. Contractors may also lose their LEF registration, disqualifying them from future NM public works. Federal Davis-Bacon penalties layer on top when federal funds are involved.
How are fringe benefits handled under New Mexico’s prevailing wage laws?
Fringe benefits are part of the total prevailing wage that must be paid to workers. Contractors can provide bona fide fringe benefits such as health insurance, pensions, or paid leave, or pay the equivalent value as additional cash on top of the basic hourly rate. Total compensation must equal at least the basic rate plus the fringe rate listed on the applicable NMDWS or SAM.gov wage determination. If no fringe benefits are provided, the full total hourly rate must be paid as cash directly to the worker.