Policy Issuance No. 19, Overtime January 16, 2006 Page 2 3. Overtime: time worked in excess of 40 hours in one work week (i.e.

: overtime begins with the 41st hour worked within one week). A normal work week is 40 hours. 4. Compensatory Time: Time off the job with pay granted to a nonexempt employee in lieu of cash compensation for overtime work, which must be granted at the rate of one and one-half (1 ½) hours for each overtime hour worked. The Department may grant compensatory time to exempt employees at a rate of one to one for overtime hours worked. 5. Workweek: A workweek consists of seven (7) consecutive 24 hour periods or 168 consecutive hours. The work week for NMDOL begins on Saturday and ends on Friday. II. Authorization for Overtime A. All supervisors and managers must make every effort to avoid the use of overtime. B. Overtime will normally be scheduled in advance of the required work. All overtime must be requested by the employee’s immediate supervisor. Requests for such authorization must be in writing, form (ES-011 Rev. 2/93) and include justification, which outlines the need for the overtime work, the cost to the Department and the requested method payment of compensation (cash payments or comp time). Requests must be submitted through supervisory channels with final approval by the Division Director prior to the date of requested overtime. C. In the event overtime work must be performed in a situation which arises that does not allow sufficient time to request the proper prior authorization through channels, the following provisions apply: 1. All reasonable methods of contacting the Division Director or the Deputy Director must be exhausted. 2. In the event of the unavailability of approving authority, the Bureau Chief may approve overtime work. 3. A follow-up request for approval should be submitted on a timely basis to ensure that the overtime reported is in the same pay period as it is performed. 4. The follow-up request should include a statement that a reasonable attempt was made to contact the Division Director.

Policy Issuance No. 19, Overtime January 16, 2006 Page 3 5. This type of overtime must be limited to emergency situations. D. Form ES-011 (Rev. 2/93), Request and Record of Overtime, must be submitted to the Division Director in order to request authorization and appropriate compensation. E. The approved overtime form reflecting total hours worked must be submitted for payment with the Biweekly Time and Attendance Report to the Financial Management Bureau, Payroll/Benefits Office. F. Overtime shall be recorded and computed in thirty (30) minute increments. G. All supervisors and managers must maintain accurate records of overtime for their employees. III. Overtime Scheduling A. Supervisors Shall: 1. Ensure that no non-exempt employee works overtime without proper authorization. All supervisors have an obligation to stop the work of non-exempt employees under their supervision, which may lead to unauthorized overtime. 2. Supervisors must ensure that non-exempt employees are completely relieved from duty during the employee’s lunch period. No non-exempt employee will be allowed to eat lunch at his/her workstation unless the supervisor can assure an uninterrupted lunch period. 3. If employees work beyond their normally scheduled workday without prior authorization, they must inform their supervisor immediately of the excess hours worked. Non-exempt employees who engage in unauthorized overtime work after being told to refrain from doing so may be subject to progressive discipline. B. Selection Process 1. If overtime is required that is not within an employee’s regular job description, the supervisor must offer overtime to other employees under his/her supervision who are more experienced and or qualified to perform the duties.

Policy Issuance No. 19, Overtime January 16, 2006 Page 4 2. If more than one qualified employee volunteers to work overtime, the supervisor shall assign overtime based on agency seniority. 3. If no volunteers are available, the supervisor will designate employees qualified to perform the overtime work based on reverse agency seniority. Mandatory overtime shall be rotated in a fair and equitable manner. IV. NON-EXEMPT EMPLOYEES A. Overtime Compensation 1. Non-exempt employees will be compensated at a rate of one and one-half (1½) times their basic hourly rate for each hour or portion thereof overtime worked. 2. NMDOL will compensate FLSA non-exempt employees through cash payment unless the employee agrees, in writing, in advance, to compensatory time off. 3. If an employee is informed that only compensatory time is available for overtime work, the employee may refuse the overtime assignment without penalty. 4. Compensatory time off shall be at a rate not less than one and one half (1½) hours for each hour of employment for which overtime compensation is required. 5. Agreement in writing to accept compensatory time off in lieu of cash payment may be agreed upon for a period of time not to exceed one year. 6. Any non-exempt employee who has accrued more than 240 hours (160 hours of actual time worked) of compensatory time off, must be paid in cash payment for any additional overtime worked. The rate of pay at the time of payment for accrued compensatory time off shall be the current rate earned by the employee at the time of payment. 7. The date(s) to be taken as compensatory time shall be scheduled after discussion between the supervisor and the employee. Supervisory approval for the use of compensatory time will be granted in a fair and equitable manner.

Policy Issuance No. 19, Overtime January 16, 2006 Page 5 B. Unused Compensatory Time 1. A non-exempt employee who has accrued authorized compensatory time off shall, upon termination of employment, be paid for the unused compensatory time at the final regular rate received by the employee. 2. A non-exempt employee shall not be allowed to accrue more than 240 hours (160 hours of actual time worked) of compensatory time during a twelve-month period. V. EXEMPT EMPLOYEES Employees who are exempt from the overtime compensation requirements of the FLSA fall under one of four (4) general categories. 1. Executive Exemption • • • • Minimum hourly rate of $11.38 per hour. Primary duty is management of a customarily recognized department or a unit within a department. Customarily and regularly directs the work (supervises) two or more employees. Has authority to hire or fire other employees or whose suggestions and recommendations as to the hiring, firing, advancement, promotion, or other changes in status are given particular weight.

2. Administrative Exemption • • • Minimum hourly rate of $11.38 per hour. Primary duty of performance of office or non-manual work directly related to the management or general business operation of the employer. Primary duty includes the exercise of discretion and independent judgment with respect to matters of significance.

3. The Computer Employee Exemption • • Minimum rate of $455 per week or $27.63 per hour. Primary duty of application of systems analysis techniques and procedures, including consulting with users, to determine hardware, software, or system functional applications. Or Design, development, documentation, analysis, creation, testing, or modification of computer systems or programs, including

Policy Issuance No. 19, Overtime January 16, 2006 Page 6 prototypes, based in and related to user or system design specifications. Or • Design documentation, testing, creation, or modification of computer programs related to machine operating systems. Or • A combination of the above where the performance of which requires the same level of skills. 4. The Professional Employee Exemption • • Minimum of $11.38 per hour. Primary duty of performance of work requiring knowledge of an advanced type in a field of science or learning customarily acquired by a prolonged course of specialized intellectual instruction, i.e. attorneys.

An employee may be considered FLSA Exempt based on a combination of the above options. B. Overtime Compensation 1. FLSA Exempt employees may be compensated with compensatory time on a straight time basis for work over forty (40) hours per week. 2. FLSA Exempt employees who are covered by the AFSCME contract may only accrue up to eighty (80) hours of compensatory time. The supervisor must either schedule compensatory time off to avoid going over the eighty hours, pay in cash one hour for each hour worked in overtime or not schedule the employee for overtime. 3. The date(s) to be taken as compensatory time shall be scheduled after discussion between the supervisor and the employee. Supervisory approval for the use of compensatory time will be granted in a fair and equitable manner. VI. Procedures 1. The Human Resource Bureau will evaluate each employee’s duties to determine their status under the FLSA. 2. The Human Resources Bureau will document all overtime designation decisions, inform employees, and maintain the documentation in the employee’s personnel file.

Policy Issuance No. 19, Overtime January 16, 2006 Page 7 3. Division Directors will be responsible through managers and supervisors to authorize: a. b. c. d. The need for overtime. Designation of employees to work overtime. Prevent unauthorized overtime. Maintain fairness and equity in the use of overtime.

4. The Department will count as time worked: a. All time spent driving a vehicle or office business outside the employees normal work hours. b. All time spent as a passenger in a vehicle outside an employee’s normal work hours if the travel itinerary and time schedule is approved by authorized supervisor. c. Paid holiday leave and annual leave. 5. The Department will not count as time worked: a. Time normally required to travel from home or temporary residence to work and return. b. Meal periods and time after normal duty hours not spent at work. c. Leave without pay including suspension, and/or absence without leave. d. Sick leave, personal leave day, administrative leave (except voting time), military leave, educational leave, and compensatory time off. 6. Employees who wish to appeal their overtime status must do so in writing through the Human Resources Bureau to the State Personnel Director. The written appeal must include the reason(s) why the employee believes he/she is improperly identified for overtime coverage. The appeal must include a current PAQ (Job Description) and any other relevant information. The Labor Secretary reserves the right to waive portions or all of this policy as long as there is no conflict with the FLSA, State Personnel Board Rules, or the Collective Bargaining Agreement. Effective Date This policy becomes effective this date and supercedes all previous issuances.