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.

Last verified · confidence medium. Clauseworthy is not a law firm and does not give legal advice.

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

Checker

What the statute says for these facts

Four facts. The answer leads with what the statute does at that pay, then names any change already enacted, then quotes the details with their citations.

The person who would sign

Several statutes treat contractors differently.

Other states on file