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The Fair Labor Standards Act (FLSA) is a federal law administered by the Department of Labor. It provides a range of protections to employees, including a requirement to pay non-exempt workers at a rate no less than the federal minimum wage. Currently, federal minimum wage is $7.25 per hour, effective July 24, 2009.
Additionally, state and local governments may enforce a minimum wage within their respective areas of authority. Most state and local governments implement minimum wage rates that are more generous than the federal requirement. Employers must comply with whichever minimum wage requirement is highest.
In 2019, the New Mexico legislature passed an amendment to the New Mexico Minimum Wage Act, which enforces annual increases to the minimum wage between January 1, 2020, through January 1, 2023. The increases are as follows:
| Effective Date | Minimum Wage Rate |
|---|---|
| January 1, 2020 | $9.00 per hour |
| January 1, 2021 | $10.50 per hour |
| January 1, 2022 | $11.50 per hour |
| January 1, 2023 | $12.00 per hour |
Effective January 2021, the University’s Staff Salary Structure was updated with a starting rate for staff employees of $10.50 per hour. Additional modifications were made to all salary bands within the Staff Salary Structure in order to align with industry best practice. Employees falling below their grade minimums received salary increases, in compliance with University Administrative Policy 3500: Wage and Salary Administration, Section 2. Notifications were sent to HR Agents for distribution to affected employees in December 2020.
In response to the 2022 Minimum Wage rate, the University plans to increase the minimum pay rate for Grade 5 from $10.50 per hour to $11.50 per hour. Additional increases will occur to other grade minimums to reducecompression between grades. All employees paid below the revised minimum salary rates for their respective salary grade will be brought up to the new minimum, no later than January 1, 2022, in accordance with University Administrative Policy 3500: Wage and Salary Administration, Section 2.
Some adjustments will also occur to salary ranges in order to align with industry-leading practices for salary structure design and administration, including reductions in salary range spreads. No salary increases will occur as a result of these changes. Additionally, there are no anticipated changes to job classifications or assigned grade levels.
The Division of Human Resources will continue to carefully assess the overarching impact of the multi-year minimum wage increases. Meanwhile, department leaders are encouraged to evaluate the impact to their specific organizations now. Here are some important considerations:
For help evaluating these questions, reach out to your HR Consultant and/or the HR Compensation team for support.
No. When the staff salary structure is adjusted, there is no impact on individual salaries for employees whose current pay rates are within the revised ranges. However, in cases where staff employee salaries fall below the minimum of the adjusted range, salaries are adjusted up to the new minimum of the respective grades, in accordance with UAP 3500: Wage and Salary Administration.
No. There are no anticipated changes to job classification titles, descriptions, or grade levels as a result of the 2022 Staff Salary Structure adjustments. HR Compensation will continue to monitor the grade levels assigned to classifications to ensure they align with market rates and to enable the University to offer competitive pay for work performed.
The information on this webpage pertains predominantly to staff employees. Contact the Office of Faculty Affairs and Services at 505-277-4528 for information regarding faculty. Contact UNM Student Employment at 505-277-3511 for information regarding student employees.
The University strives to ensure that salaries are administered in line with industry-leading practices. With this goal in mind, the University aims to reduce salary ranges in order to mitigate the following risks associated with wide salary ranges:
By implementing minor reductions to the range spread, the University can minimize these risks and ensure all employees are paid competitively.
There will be no changes to salaries for individuals paid at or above the maximum of their respective salary grade. Staff employees will remain eligible for all available compensation mechanisms. This includes the annual Mass Salary Update, dependent on compensation guidelines stipulated annually by University leadership. HR Compensation will partner with department leaders to ensure highly-paid employees are appropriately classified and job classifications are aligned with the appropriate grade level.
Currently, federal contractors are required to pay workers $10.95 per hour. On April 27, 2021, President Biden signed an executive order, which stipulates that workers funded by federal contracts must be paid an hourly minimum wage of $15.00. This order will take effect in early 2022 and applies solely to employees whose positions are funded through federal contracts. All other positions must be paid in accordance with the University’s Staff Salary Structure.
Regardless of how different positions are funded, it is also important for managers to carefully consider the employee’s job-related qualifications when determining an appropriate pay level, as well as equity between similarly-situated peers.
As a state employer, the University must comply with state minimum wage requirements, rather than city requirements.
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