New Mexico Statutes
Article 4 - Public Works Contracts
Section 13-4-13 - Failure to pay minimum wage; termination of contract.

Every contract within the scope of the Public Works Minimum Wage Act [13-4-10 to 13-4-17 NMSA 1978] shall contain further provision that in the event it is determined by the director that any laborer or mechanic employed on the site of the project has been or is being paid a wage rate or fringe benefit rate less than the rates required, and in the absence of a voluntary resolution by the parties, the contracting agency shall, within thirty days of the director's determination, by written notice to the contractor, subcontractor, employer or person acting as a contractor, terminate the right to proceed with the work or the part of the work as to which there has been a failure to pay the required wages or fringe benefits, and the contracting agency shall prosecute the work to completion by contract or otherwise, and the contractor or person acting as a contractor and the contractor's or person's sureties shall be liable to the state for any excess costs occasioned thereby. Any party receiving notice of termination of a project or subcontract pursuant to the provisions of this section may appeal the finding of the director as provided in the Public Works Minimum Wage Act.
History: 1953 Comp., § 6-6-7, enacted by Laws 1965, ch. 35, § 3; 1991, ch. 224, § 3; 2009, ch. 206, § 4; 2020, ch. 47, § 2.
The 2020 amendment, effective May 20, 2020, strengthened requirements in the event it is determined that a laborer is being paid a wage rate less than the rates required, and required certain entities to act regardless of whether the failure to pay the required wages was willful; and after "in the event it is", deleted "found" and added "determined", after "has been or is being paid", deleted "as a result of a willful violation", after "than the rates required", added "and in the absence of a voluntary resolution by the parties", after "the contracting agency", deleted "may" and added "shall, within thirty days of the director's determination", deleted "willful" preceding the next occurrence of "failure", and after "the contracting agency", deleted "may" and added "shall".
The 2009 amendment, effective July 1, 2009, after "willful violation a", changed "rate of wages less than the rate of wages" to "wage rate or fringe benefit rate less that the rates"; and after "pay the required wages", added "or fringe benefits".
The 1991 amendment, effective July 1, 1991, substituted "director of the labor and industrial division of the labor department" and "director" for "state labor commissioner"; inserted "employer or person acting as a contractor" and "or person acting as a contractor"; substituted "project" for "contract" in the second sentence; and made minor stylistic changes throughout the section.

Structure New Mexico Statutes

New Mexico Statutes

Chapter 13 - Public Purchases and Property

Article 4 - Public Works Contracts

Section 13-4-1 - Public works contracts.

Section 13-4-1.1 - Definitions; construction contract; contractor.

Section 13-4-2 - Application of preference.

Section 13-4-3 - Federal aid projects exempt.

Section 13-4-4 - [Contracts in violation declared void.]

Section 13-4-5 - Use of New Mexico materials.

Section 13-4-6 - [Discrimination against New Mexico softwood timber in building codes prohibited.]

Section 13-4-7 - [Use of New Mexico timber in public buildings required.]

Section 13-4-8 - Federal aid projects.

Section 13-4-9 - [Penalty.]

Section 13-4-10 - Short title.

Section 13-4-10.1 - Definitions.

Section 13-4-11 - Prevailing wage and benefit rates determined; minimum wages and fringe benefits on public works; weekly payment; withholding funds.

Section 13-4-12 - Repealed.

Section 13-4-13 - Failure to pay minimum wage; termination of contract.

Section 13-4-13.1 - Public works contracts; registration of contractors and subcontractors.

Section 13-4-14 - Payment of wages from funds withheld; list of contractors violating act; additional right of wage earners.

Section 13-4-14.1 - Labor enforcement fund; creation; use.

Section 13-4-14.2 - Registration cancellation, revocation, suspension; injunctive relief.

Section 13-4-15 - Appeals.

Section 13-4-16 - Construction of act.

Section 13-4-17 - Outstanding contracts and invitations.

Section 13-4-18 - Construction contract performance and payment bonds.

Section 13-4-19 - Rights of person furnishing labor or materials and right of state with respect to taxes due.

Section 13-4-20 - Additional bond in case of insolvency of sureties.

Section 13-4-21 - [Public contracts with nonresident persons or partnerships or unadmitted foreign corporations; agent for service of process.]

Section 13-4-22 - [Secretary of state as agent for service.]

Section 13-4-23 - [Service where there is no designated agent.]

Section 13-4-24 - [Continuances.]

Section 13-4-26 - Repealed.

Section 13-4-27 to 13-4-30 - Repealed.

Section 13-4-31 - Short title.

Section 13-4-32 - Legislative findings.

Section 13-4-33 - Definitions.

Section 13-4-34 - Listing of subcontractors; requirements.

Section 13-4-35 - Exemption.

Section 13-4-35.1 - Application of act.

Section 13-4-36 - Substitution of subcontractor.

Section 13-4-37 - Bond requirements.

Section 13-4-38 - Failure to specify subcontractor.

Section 13-4-39 - Inadvertent clerical error.

Section 13-4-40 - Emergency subcontracting.

Section 13-4-41 - Penalties.

Section 13-4-42 - Coverage of home rule municipalities.

Section 13-4-43 - Dispute resolution.