New
Mexico Register / Volume XXXVII, Issue 19 / October 6, 2026
This
is an amendment to 1.7.4 NMAC, Sections 12, 13, 14, 16, and 18, effective 10/6/2026.
1.7.4.12 ADMINISTRATION OF THE SALARY
SCHEDULES:
A. Entrance salary: Upon entrance to a classified position, a
newly hired employee’s salary, subject to budget availability, should reflect
appropriate placement within the pay band.
Any entrance salary at or above one hundred and fifteen percent compa-ratio must receive approval from the SPO director
prior to hire.
B. Legislative authorized
salary increase:
(1) Subject to specific statutory authorization for each
state fiscal year, employees may be eligible for a salary increase within their
assigned pay band.
(2) Employees with a salary at or above
the maximum of the position’s pay band shall not be eligible for an increase
unless authorized by statute.
C. Salary upon in pay band adjustment: Agencies may
increase an employee’s base salary within the assigned pay band, subject to SPO
director approval, budget availability and reflective of appropriate
placement. In pay band adjustments may
not result in the employee’s base salary exceeding the maximum of the assigned
pay band. When reviewing requests for in
pay band adjustments the SPO director will take into consideration those
instances where the requesting agency has employees with a current rate of pay
that falls below the minimum of their pay band.
In pay band adjustments for demonstrated performance, or skill and
competency development shall be capped at ten percent per fiscal year.
D. Salary upon promotion: Upon promotion, an employee's salary subject
to budget availability should reflect appropriate placement within the pay
band. A salary increase of less than
five percent shall require approval of the SPO director. A salary increase greater than ten percent
per pay band increase shall require approval of the SPO director. A salary increase greater than ten percent to
bring an employee’s salary to the minimum of the pay band or less than five
percent to prevent an employee’s salary from exceeding the maximum of the pay
band does not require the approval of the SPO director. The salary of a promoted employee shall be in
accordance with Subsection B of
1.7.4.11 NMAC.
E. Salary upon demotion: Upon demotion,
an employee's salary shall be decreased by no more than fifteen percent, unless
a greater decrease is required to bring the salary to the maximum of the new
pay band.
F. Salary upon transfer:
(1) Upon transfer an employee’s salary,
subject to budget availability and reflective of appropriate placement, may be
increased or decreased by up to ten percent.
The SPO director may approve a salary increase greater than ten percent
due to special circumstances that are justified in writing.
(2) Employees shall be compensated, in
accordance with agency policy, for all accumulated leave, other than sick,
annual, or personal leave, prior to inter-agency transfer.
G. Salary upon pay band change: When a change of pay band is authorized in
accordance with the provisions of 1.7.4.9 NMAC, 1.7.4.10 NMAC, or 1.7.4.11 NMAC the salaries of affected employees
shall be determined in accordance with Subsection C of 1.7.4.11 NMAC. Employees whose pay band is adjusted upward
or downward shall retain their current salary in the new pay band. Employees’ salaries may be addressed through
in pay band adjustment unless otherwise allowed by statute.
H. Salary upon reduction: The salary of employees who take a reduction
may be reduced by up to fifteen percent. An employee’s salary should reflect
appropriate placement within the pay band.
The SPO director may approve a salary reduction greater than fifteen
percent due to special circumstances that are justified in writing.
I. Salary upon return to work
or reemployment: The salary of former employees who are returned
to work or re-employed in accordance with the provisions of 1.7.10.10 NMAC,
1.7.10.11 NMAC, 1.7.10.12 NMAC, or 1.7.10.14 NMAC shall not exceed the hourly
rate of their base salary at the time of separation, unless a higher salary is
necessary to bring the employee to the minimum of the pay band.
J. Salary upon temporary promotion: Pay for a temporary promotion under Subsection [F]
E of [1.7.5.12] 1.7.5.13 NMAC, will be administered in accordance
with Subsection
D of 1.7.4.12 NMAC, except that
payment of a temporary promotion increase shall be separate from the employee’s
base salary. The agency shall
discontinue the temporary promotion increase when the temporary conditions
cease to exist or at the end of the 12-month period, whichever occurs first.
K. Temporary salary increase: An agency may, with the approval of the SPO
director, grant a temporary salary increase of an employee’s base pay for a
period not to exceed 1 year, from the effective date of the salary increase,
for temporarily accepting and consistently performing additional duties which
are characteristic of a job requiring greater responsibility/accountability or
a higher valued job. The SPO director
may approve temporary salary increases above the maximum of the employee’s
current pay band. Payment of a temporary salary increase shall
be separate from the employee’s base salary.
The agency shall discontinue the temporary salary increase when the
temporary conditions cease to exist or at the end of the 12-month period, whichever occurs first.
L. Salary
adjustment to minimum: An employee whose
salary falls below the minimum of the pay band will be adjusted in accordance
with Paragraph
(2) of Subsection C of 1.7.4.11 NMAC.
[1.7.4.12 NMAC - Rp, 1.7.4.12 NMAC, 8/1/2021; A,
7/29/2025; A, 2/24/2026; A, 10/6/2026]
1.7.4.13 PAY
DIFFERENTIALS:
A. Temporary
recruitment differential: The SPO
director may authorize, in writing, a pay differential of up to fifteen percent
of an employee's base pay to an employee who fills a position which has been
documented as critical to the effective operation of the agency and has been
demonstrated and documented to be a severe recruitment problem for the agency.
(1) A temporary recruitment differential
authorized under this provision shall be tied to the position and may not
transfer with the employee should the employee leave that position. Payment of this differential shall be
separate from the employee’s base salary.
Agencies shall demonstrate to the office, at least biennially, the
circumstances which justified the differential to determine the necessity for
its continuance.
(2) A temporary recruitment differential
of more than fifteen percent of an employee's base pay or that results in an
employee’s pay exceeding the maximum of the pay band may be authorized by the
SPO director.
B. Temporary retention differential: The SPO director may authorize, in writing, a
pay differential of up to fifteen percent of an employee’s base pay to an
employee in a position which the agency has documented and has been designated
as critical to the effective operation of the agency and the employee’s
departure would disrupt the agency’s ability to fulfill its mission.
(1) A
temporary retention differential authorized under this provision may be
approved up to one year. The agency
shall demonstrate to the office, at least annually, the circumstances which
justify the continuance of the differential.
The agency must provide a detailed plan that outlines how they intend to
resolve the problems associated with the retention difficulties. Payment of this differential shall be
separate from the employee’s base salary and may not transfer with the employee
should the employee leave that position.
(2) A temporary retention differential of
more than fifteen percent of an employee's base pay or that results in an
employee’s pay exceeding the maximum of the pay band may be authorized if
approved by the SPO director.
C. The temporary
recruitment differential and the temporary retention differential are separate
and distinct pay differentials that are administered separately.
D. Pay
for dusk to dawn work: Employees
shall be paid, in addition to their hourly pay rate, no less than $0.60 per
hour for each hour of regularly scheduled work between 6:00 p.m. and 7:00 a.m.
(1) Agencies shall notify the SPO director of any change to the
dusk to dawn differential or hours of eligibility.
(2) Agencies may choose not to pay the dusk to dawn
differential to an employee whose alternative work schedule request results in
the employee working any hours between 6:00 p.m. and 7:00 a.m.
E. Multi-lingual
Pay: An agency may authorize a pay
differential of $0.35 per hour to an employee who has been assigned to perform
multi-lingual duties in a facility, office or worksite where it is deemed
necessary to facilitate multi-lingual communications with members of the
public.
F. Differential
for temporary licensure or certification:
The SPO director may authorize a pay differential of $1.00 to $5.00 per
hour for an employee who has obtained a licensure or certification that the
agency has documented is relevant and enhances the employee’s position. The differential shall be removed when the
licensure or certification expires. The
following conditions must be met:
(1) The licensure or certification is not required by the
classification; and
(2) The licensure or certification is subject to renewal.
[1.7.4.13 NMAC - Rp, 1.7.4.13
NMAC, 8/1/2021; A, 7/29/2025; A, 2/24/2026; A, 10/6/2026]
1.7.4.14 OVERTIME:
A. Agencies are
responsible for the evaluation of each employee's position and duties in order
to determine their overtime status as set forth under the Fair Labor Standards
Act.
B. Agencies shall
provide documentation to employees as to the determination of their overtime
status.
C. Employees have
the right to appeal the determination of their overtime status according to the
provisions of 1.7.6.13 NMAC. Agencies
shall notify employees in writing of their appeal decision within 30 calendar
days. [The employee may file an
appeal of the agency’s decision to the SPO director within 30 calendar days of
the agency’s decision. Agencies shall
notify employees that their appeal to the SPO director must be in writing and
must include the reason(s) why the employee believes he or she is improperly
identified for overtime coverage. The
appeal must include documentation describing the work currently being performed
by the employee and any other relevant information. All information contained in the appeal shall
be verified by the employing agency]
D. Agencies shall
maintain a record on each employee containing information required by the
provisions of the Fair Labor Standards Act.
E. Workweek is a
period of time which begins at 12:01 a.m.
Saturday, and ends at 12:00 midnight, the following Friday. The SPO director may approve an alternative work
week.
F. Time worked in
excess of 40 hours during the designated workweek shall be compensated in
accordance with the provision of the Fair Labor Standards Act [29 U.S.C.
Sections 201 to 262] for Fair Labor Standards Act covered, non-exempt
employees.
G. Agencies shall
not change the workweek to avoid payment of overtime. A change to the scheduled work hours within
the workweek shall not be considered a change to the workweek.
H. Agencies shall
determine the need for employees to work overtime, and be responsible for
authorizing overtime work.
I. Paid holiday
leave in accordance with the provisions of Subsection A of 1.7.4.17 NMAC,
annual leave taken in accordance with the provisions of Subsection F of 1.7.7.8
NMAC, and administrative leave for voting taken in accordance with the
provisions of Subsection
C of 1.7.7.14 NMAC shall also count as time worked in the consideration
of overtime for Fair Labor Standards Act covered, non-exempt employees.
J. Agencies shall
pay Fair Labor Standards Act covered, non-exempt employees for overtime worked
unless the employee, in advance, agrees in writing to compensatory time
off. Employees may accrue a maximum of
240 hours of compensatory time, unless otherwise authorized by statute and
shall be paid for accrued compensatory time upon separation.
K. Employees not
covered or exempt from the overtime provisions of the Fair Labor Standards Act
may be compensated for overtime if an agency's policy permits.
L. Any additional
regular hours worked shall not be substituted for approved paid leave time
during the same week additional regular hours were worked.
[1.7.4.14 NMAC - Rp, 1.7.4.14 NMAC, 8/1/2021; A, 7/29/2025;
A, 10/6/2026]
1.7.4.16 ON-CALL PAY:
[A.] In
accordance with the provisions of the Fair
Labor Standards Act, agencies shall develop a policy to compensate
employees directed to remain on-call after their normal or alternative work
schedule.
[B. Agencies
shall file their on-call compensation policy with the office. Subsequent revisions to the on-call policy
shall be filed with the office prior to implementation.]
[1.7.4.16 NMAC - Rp, 1.7.4.16
NMAC, 8/1/2021; A,
10/6/2026]
1.7.4.18 GOVERNMENT COST SAVINGS INCENTIVE AWARDS: Agencies may provide cash awards to employees
with the approval of the board in accordance with the provisions of Section
10-7-12 NMSA 1978. The SPO director
[and the secretary of the department of finance and administration]
shall [jointly] issue and administer guidelines for submitting proposed
awards to the board.
[1.7.4.18 NMAC - Rp, 1.7.4.18
NMAC, 8/1/2021; A,
10/6/2026]