Allowed if reasonable
Non-compete law in New Mexico
New Mexico has no general noncompete statute that we found, so employee covenants are governed by judge-made reasonableness. The Legislature has, however, made noncompete provisions unenforceable for ten categories of health care practitioners (dentists, osteopathic physicians, physicians, podiatrists, CRNAs, nurse practitioners, nurse-midwives, psychologists, physician assistants and pharmacists) once the agreement, a renewal, or the practitioner's employment with the enforcing party ends. Those provisions, formerly NMSA 24-1I-1 to -5, were recompiled as §§ 24A-4-1 to -5 on July 1, 2024.
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- Employee non-competes
- Not banned; conditions apply
- Pay floor
- None in the statute
- Duration
- No general statutory cap; common-law reasonableness (not sourced to an official opinion here).
Exceptions and special rules
- Health care practitioner provisions do not apply to agreements between practitioners who are shareholders, owners, partners or directors of a health care practice (NMSA 24A-4-5(A)).
- Even for health care practitioners the statute does not limit enforcement of: repayment of loans, relocation expenses, signing bonuses or recruiting/education/training expenses if the practitioner worked for the employer under three years; nondisclosure provisions on confidential information and trade secrets; patient and employee non-solicitation for one year or less after last employment; liquidated damages that are reasonable (NMSA 24A-4-3, -4).
- Health care practitioner: dentist, osteopathic physician, physician, podiatrist, certified registered nurse anesthetist, certified nurse practitioner, certified nurse-midwife, psychologist, physician assistant, pharmacist. A non-compete provision restricting the practitioner's right to provide clinical health care services in New Mexico is unenforceable upon termination of the agreement, a renewal or extension, or the practitioner's employment with the party seeking enforcement. A provision for clinical services in New Mexico that subjects the agreement to another state's law or requires out-of-state litigation is void and against public policy. Applies to agreements, renewals or extensions executed on/after July 1, 2015 (out-of-state law/forum rule: on/after April 6, 2017; psychologists, physician assistants and pharmacists: on/after April 4, 2023). (NMSA 1978, §§ 24A-4-1, -2, -5 (formerly §§ 24-1I-1, -2, -5))
Non-solicitation clauses
For health care practitioners, patient and employee non-solicitation for one year or less remains enforceable (NMSA 24A-4-3(C)). Otherwise no statute; common law.
Contracts naming another state's law
Health care practitioners only: out-of-state governing-law and out-of-state-litigation provisions in agreements for clinical services rendered in New Mexico are void (NMSA 24A-4-2(B)).
Remedies
Liquidated damages must be reasonable when the agreement is signed; unreasonably large liquidated damages are void as a penalty (NMSA 24A-4-4). No other general statutory remedies found.
Which agreements it covers
See occupationRules for signing-date cutoffs (2015-07-01; 2017-04-06; 2023-04-04). Health care practitioners; later dates for out-of-state law/forum (2017-04-06) and for psychologists, physician assistants and pharmacists (2023-04-04).
Recent changes
- 2026-10-14. Official compilation (which already includes a 2026 amendment effective May 20, 2026 elsewhere in chapter 24A) shows no 2025 or 2026 amendment to Article 4 (Health Care Practitioner Agreements). Secondary sources report a 2025 bill (HB 366, veterinarians) died. Source
- 2024-07-01. Laws 2024, ch. 39, § 132 recompiled former NMSA 24-1I-1 to -5 as 24A-4-1 to -5 (Health Care Code); text unchanged except cross-references. Source
- 2023-04-04. Laws 2023, ch. 97 added psychologists, physician assistants and pharmacists to the covered practitioners (agreements on/after this date). Source