Carla Sonntag, president and co-founder of the New Mexico Business Coalition (NMBC), said that HB 11, the Paid Family and Medical Leave Act (PFMLA), would result in the largest wage tax increase in state history. This statement was made in a press release on January 30.
"Bad bills are moving forward in Santa Fe and HB 11, Paid Family and Medical Leave Act (PFMLA), is one of the worst," said Sonntag. "After heated debate with more public opposition than support, the bill passed the first committee on a partisan vote. all Democrats voting 'Yes,' and all Republicans voting 'No.' If passed, PFMLA will be funded by the largest wage tax increase in NM history that both employees and employers with 5 or more employees will pay! It's estimated to cost over $400 million dollars."
According to the New Mexico Legislature, HB 11 proposes the creation of a state-run Paid Family and Medical Leave (PFML) fund. This fund would provide eligible employees with up to 12 weeks of paid leave for qualifying medical and family reasons. The program is intended to be funded by a mandatory payroll tax on both employees and employers with five or more employees. The Legislative Finance Committee estimates the cost of the program at over $400 million, marking it as one of the most expensive wage-related measures in New Mexico’s history. The bill passed its first committee on a partisan vote, with all Democrats supporting it and all Republicans opposing it.
The proposed legislation would establish a state-run Paid Family and Medical Leave Fund, financed through a mandatory payroll tax imposed on both employees and employers. Under the current proposal, employees would contribute 0.5% of their wages, equivalent to $5 for every $1,000 earned, while employers with five or more employees would pay 0.4% of their payroll, or $4 for every $1,000 paid to employees. The total payroll tax burden would be 0.9% of wages, deducted from paychecks along with employer contributions. These funds would be administered by the New Mexico Department of Workforce Solutions, which would oversee disbursements to eligible workers taking leave.
According to her LinkedIn profile, Sonntag is also the owner of Sonntag Enterprises, Inc., and holds a Bachelor of Business Administration from the Anderson School of Management at the University of New Mexico.
