Proposed Albuquerque $15 minimum wage won’t improve affordability

Several Albuquerque city councilors are proposing an increase in the City’s minimum wage to $15 an hour for regular workers and a tipped wage of $7.20 an hour. Currently, the City has an $11.85 minimum wage but that rate is preempted by the state’s $12 an hour wage. If this law passes the regular wage will rise from $15 an hour and be indexed to inflation. The tipped wage for restaurant workers and others would be indexed to rise with inflation.

According to Councilor Tammy Fiebelkorn, “workers’ average earnings are about 20% below the national average, while rent is often higher.”

Unfortunately, there is no such thing as a free lunch. Raising minimum wages can squeeze out low-skilled workers and increase the cost of living and doing business. California, for example, has a $16.90 minimum wage with fast food workers earning $20 an hour. Impacts have included “reduced employee hours, increased automation, and increased menu prices.” Study after study (like this one from the Congressional Budget Office) has shown such wage mandates cause job loss. 

It is also worth noting that rent in Albuquerque is not particularly expensive. According to a Wallethub study of 182 major US cities Albuquerque renters paid 33rd LEAST rent as a percentage of their incomes. 

You can find the legislation here. It starts it’s legislative journey on June 1.