N.M. Admin. Code § 1.7.1.13
Any settlement agreement reached by an agency and an employee to resolve a matter between them, that incorporates provisions covered by these rules, must conform to the provisions of these rules, unless otherwise approved by the SPO director. If a potential offer of settlement relates to a personnel action covered by these rules, including, but not limited to, disciplinary appeals or grievance arbitrations, an agency must secure approval from the SPO director prior to extending the offer. If in the judgment of the SPO director, the offer of settlement is in the best interest of the state, the SPO director may authorize the agency to extend the offer of settlement to the employee. If such settlement also involves payment of monies by an agency, joint approval of the cabinet secretary of the department of finance and administration signifying budget availability and the SPO director is required.
N.M. Admin. Code § 1.7.1.13