STATE EMPLOYEE SALARY & RETENTION CHANGES

HB0098

HOUSE BILL 98

57th legislature - STATE OF NEW MEXICO - second session, 2026

INTRODUCED BY

Patricia Roybal Caballero
and
Pamelya Herndon

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, 2027 and on July 1 of each successive
year, the minimum salary rate shall be adjusted by multiplying
the minimum salary as of July 1, 2026 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, 2026; 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. State employees shall be eligible for annual
leave accrued at rates that are competitive with public sector
employers.

B. Effective July 1, 2027, every state employee
shall accrue annual leave at the rate of at least:

(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. Effective July 1, 2027, state employees shall be
eligible for paid parental leave of at least twelve work weeks
of fully paid parental leave to eligible state 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 state 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. State agencies shall implement a remote work
program to enhance recruitment and retention of a diverse
workforce from rural areas of New Mexico that shall provide:

(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 work at a remote work location shall be based on
applicable job functions, the nature of the work performed,
operational needs and a strategic analysis of the employer's
needs.

D. State employees working at remote work locations
shall be full-time residents of New Mexico.

E. Evaluation of state employees working at remote
work locations shall be based on identification and completion
of applicable job functions. While working at a remote work
location, a state 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,
including allowance for part-time
and alternative work schedules
, holiday [
and
]
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, 2026.

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