New Mexico Non-Compete Agreement | Laws

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Updated June 02, 2022

A New Mexico non-compete agreement allows an employer to restrict an employee from working in the same or similar field to protect the business’s legitimate interests. A non-compete is required to specify the duration and geographical area where the employee is prohibited to work.

Legally Enforceable?

Yes, a non-compete is legally enforceable in New Mexico if the court deems them reasonable.

The primary purpose of a non-compete cannot be to simply “stifle competition.” An agreement must impose partial restraint of a specific trade no larger than reasonably required to protect the employer.

Source: Nichols v. Anderson (1939)

Health Practitioners (prohibited)

“Health practitioners,” as defined by the New Mexico statutes are prohibited from entering into a non-compete:

  • Dentists;
  • Osteopathic physicians;
  • Physicians;
  • Podiatrists;
  • Certified registered nurse anesthetists;
  • Certified nurse practitioner; and
  • Certified nurse-midwifes.

Source: § 24-1I-1 & § 24-1I-2

Termination Without Cause

If an employee is terminated without cause, the non-compete is not enforceable and would not be recognized by a New Mexico court.

Source: Danzer v. Professional Insurors (1984)

Continued Employment

An employee’s continued employment may be deemed as sufficient consideration for a non-compete. Even a New Mexico court have not clearly defined it as such, they have ruled in favor of post-employment non-compete agreements.

Source: Nichols v. Anderson (1939)

Maximum Term

3 years was deemed reasonable for restricting a profession for a county in New Mexico.

Source: Lovelace Clinic v. Murphy (1966)

Blue Penciling

New Mexico courts have not given a definitive ruling on where it stands in regard to amending, reforming, or modifying non-compete agreements.