What are the consequences of not paying employees the minimum wage?

In New Mexico, not paying employees the minimum wage may result in serious legal consequences for employers. Providing wages lower than the legal minimum wage is against the law and may be subject to penalties. Employers that don’t abide by the law can be fined by the New Mexico Department of Workforce Solutions. Furthermore, employees can file a lawsuit against the employer for any unpaid wages. The Department of Workforce Solutions has the right to investigate employers that they suspect of wage violations. If found guilty, employers can be liable for unpaid wages to their employees, civil penalties, and even criminal penalties. The Department may order the employer to pay back wages, including interest, along with any legal fees they incurred during the investigation. In addition, the employer may face criminal charges including fines and imprisonment. The exact penalty depends on the severity of the violation but can include up to six months in jail and a fine of up to $500. When employers in New Mexico don’t pay the minimum wage, not only can they face legal consequences, but their employees lose out on the wages they are legally entitled to. It is critical for employers in New Mexico to be well aware of their obligations to pay employees the minimum wage in order to avoid these legal penalties.

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