HOUSE BILL 264
57th legislature - STATE OF NEW MEXICO - first session, 2025
INTRODUCED BY
Patricia Roybal Caballero and Marianna Anaya
AN ACT
RELATING TO STATE EMPLOYEES; PROVIDING FOR A FUTURE INCREASED MINIMUM SALARY, ANNUAL LEAVE ACCRUAL RATES AND PAID PARENTAL LEAVE; PROVIDING FOR STATE EMPLOYEE RECRUITMENT AND RETENTION; AMENDING AND ENACTING SECTIONS OF THE NMSA 1978.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 10-7-9 NMSA 1978 (being Laws 1974, Chapter 10, Section 2) is amended to read:
"10-7-9. MINIMUM SALARY RATE.--
A. Every state employee and every person regularly employed at a state educational institution named in Article 12, Section 11 of the constitution of New Mexico [constitution], except student employees as defined by the [board of educational finance] higher education department, shall receive a salary at a rate equal to at least [four hundred dollars ($400) per month] fifteen dollars ($15.00) per hour.
B. On July 1, 2026 and on July 1 of each successive year, the minimum salary rate shall be adjusted by multiplying the minimum salary as of July 1, 2025 by a fraction, the numerator of which is the consumer price index ending in September of the previous year and the denominator of which is the consumer price index ending September 30, 2025; provided that the minimum wage rate shall not be adjusted downward as a result of a decrease in the consumer price index.
C. To the extent any provision of this section conflicts with a current collective bargaining agreement negotiated pursuant to the Public Employee Bargaining Act, the provisions of this section shall not apply.
D. As used in this section, "consumer price index" means the consumer price index, not seasonally adjusted, for all urban consumers, United States city average for all items, or a successor index, as published by the United States department of labor for a twelve-month period ending September 30 each year."
SECTION 2. A new section of Chapter 10, Article 7 NMSA 1978 is enacted to read:
"[NEW MATERIAL] STATE EMPLOYEE ANNUAL LEAVE ACCRUAL RATES.--
A. Notwithstanding any statute or rule to the contrary, state employees shall be eligible for annual leave accrued at rates that are competitive with other public sector employers.
B. Effective July 1, 2026, every state employee shall accrue annual leave at the rate of:
(1) four and sixty-two hundredths hours per pay period if the employee has less than three years of cumulative employment;
(2) five and fifty-four hundredths hours per pay period if the employee has three years or more but less than seven years of cumulative employment;
(3) six and forty-six hundredths hours per pay period if the employee has seven years or more but less than fourteen years of cumulative employment; and
(4) seven and thirty-nine hundredths hours per pay period if the employee has fourteen years or more of cumulative employment.
C. To the extent any provision of this section is more restrictive than a current collective bargaining agreement negotiated pursuant to the Public Employee Bargaining Act, the provisions of this section shall not apply.
D. As used in this section, "state employee" means an employee as defined in Section 10-9-3 NMSA 1978; provided that the coverage of service exemptions set forth in Section 10-9-4 NMSA 1978 shall apply."
SECTION 3. A new section of Chapter 10, Article 7 NMSA 1878 is enacted to read:
"[NEW MATERIAL] STATE EMPLOYEE PAID PARENTAL LEAVE.--
A. Notwithstanding any statute or rule to the contrary, effective July 1, 2026, state employees shall be eligible for paid parental leave of at least twelve work weeks of fully paid parental leave to eligible employees following the birth or adoption or upon gaining custody of a child. If both parents, including a domestic partner of a parent, are eligible employees, each parent or partner shall receive paid parental leave.
B. To the extent any provision of this section conflicts with a current collective bargaining agreement negotiated pursuant to the Public Employee Bargaining Act, the provisions of this section shall not apply.
C. As used in this section, "state employee" means an employee as defined in Section 10-9-3 NMSA 1978; provided that the coverage of service exemptions set forth in Section 10-9-4 NMSA 1978 shall apply."
SECTION 4. A new section of Chapter 10, Article 7 NMSA 1978 is enacted to read:
"[NEW MATERIAL] STATE EMPLOYEE REMOTE WORK POLICY.--
A. Notwithstanding any statute or rule to the contrary, state agencies shall implement a remote work program to enhance recruitment and retention of a diverse workforce from rural areas of New Mexico. Additional benefits of a successful remote work program include:
(1) stable and reliable job opportunities for rural New Mexico residents and enhanced workforce retention and talent recruitment; and
(2) increased diversity, equity, inclusion and accessibility with the state as an employer.
B. The remote work location is an approved designated duty station other than the official employer work site in New Mexico.
C. Position eligibility for both hybrid and full-time remote work shall be based on applicable job functions, nature of the work performed, operational needs and a strategic analysis of the employer's needs.
D. Employees in remote work positions shall be current full-time residents of New Mexico.
E. Evaluation of remote work employees shall be based on identification and completion of applicable job functions. While remote working, an employee is expected to maintain the same hours of work and productivity, performance, communication and responsiveness standards as when working at the regular work site.
F. To the extent any provision of this section conflicts with a current collective bargaining agreement negotiated pursuant to the Public Employee Bargaining Act, the provisions of this section shall not apply.
G. As used in this section, "state employee" means an employee as defined in Section 10-9-3 NMSA 1978; provided that the coverage of service exemptions set forth in Section 10-9-4 NMSA 1978 shall apply."
SECTION 5. Section 10-9-13 NMSA 1978 (being Laws 1961, Chapter 240, Section 9, as amended) is amended to read:
"10-9-13. RULES--ADOPTION--COVERAGE.--Rules promulgated by the board shall be effective when filed as required by law. The rules shall provide, among other things, for:
A. a classification plan for all positions in the service;
B. a pay plan for all positions in the service;
C. competitive entrance and promotion tests to determine the qualifications, fitness and ability of applicants to perform the duties of the position for which they apply. Such rules shall also provide for the awarding to those applicants having a passing grade of two preference points for each year of residency in New Mexico not to exceed a total of ten preference points;
D. exemption from competitive entrance tests for those professional persons applying for classified positions in the service who possess recognized registration or certification by another state agency;
E. a period of probation of one year during which a probationer may be discharged or demoted or returned to the eligible list without benefit of hearing;
F. the establishment of employment lists for the certification of the highest standing candidates to the prospective employers and procedure to be followed in hiring from the lists;
G. hours of work, [holiday and] including allowance for part-time and alternative work schedules, holiday schedules, competitive leave accrual rates and paid parental leave;
H. dismissal or demotion procedure for employees in the service, including presentation of written notice stating specific reasons and time for the employees to reply thereto, in writing, and appeals to the board;
I. the rejection of applicants who fail to meet reasonable requirements as to age, physical condition, training, experience or moral conduct; [and]
J. employment of any apparently qualified applicant for a period of not more than ninety days when an emergency condition exists and there are no applicants available on an appropriate employment list as provided in Subsection F of this section. The applicant, if employed, shall be paid at the same rate as a comparable position covered by the Personnel Act; and
K. a plan to designate positions eligible for full-time remote work or part-time, or hybrid, remote work for an approved work site other than a designated state work site to bring job opportunities to rural areas of the state and expand employee recruitment opportunities as part of a strategic analysis of the employer's needs."
SECTION 6. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2025.
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