Occupation limits
New Mexico Non-Compete Law (2026): Enforceable with carve-outs
New Mexico voids noncompete provisions in agreements with licensed health care practitioners once the contract, a renewal, or the employment itself ends, and the list of covered clinicians now runs from physicians and dentists through CRNAs, nurse practitioners, nurse-midwives, PAs, psychologists and pharmacists. The same article kills any attempt to route disputes to another state's law or courts. Workers outside health care get no statutory protection and are judged under the ordinary reasonableness standard.
The rule
How New Mexico treats non-compete agreements
The ownership exception in § 24A-4-5 is what most summaries skip, and it matters because partnership-track physicians can be bound by the very covenant an employed colleague could ignore. The statute also leaves room for reasonable liquidated damages, so a clinician's exit can still carry a price tag even where a practice restriction cannot.
If you are an employer
Treat clinician noncompetes as void unless the practitioner is an owner, partner, shareholder or director of the practice, and drop any out-of-state law or venue clause from those contracts because it is void by statute.
If you are a worker
Licensed clinicians in New Mexico generally cannot be held to a noncompete, though that protection falls away if you hold an ownership or director role in the practice.
| Classification | Clinician noncompete ban with an ownership exception; reasonableness for other workers |
|---|---|
| Pay threshold | None. Coverage turns on licensure, not pay. |
| Maximum term | No statutory limit outside the health care article; duration is a reasonableness question for other employees. |
| Notice or consideration | No disclosure or waiting period is imposed by statute. |
| Primary statute | N.M. Stat. Ann. §§ 24A-4-1 to 24A-4-5 (formerly §§ 24-1I-1 to 24-1I-5, recompiled effective July 1, 2024) |
Detail
What has changed, and what is still moving
Legislation 2024–2026
The substantive rules were set in 2015 and broadened in 2017 and 2023. The only 2024 change was structural: Laws 2024, ch. 39 moved the Health Care Practitioner Agreements article out of Chapter 24 and into the new Health Care Code at Chapter 24A, Article 4, effective July 1, 2024. Nothing was enacted in 2025 or 2026.
Bills to watch
No significant restrictive bills pending in the 2026 session.
Leading cases
Bowen v. Carlsbad Insurance & Real Estate, Inc., 104 N.M. 514 (1986), remains the reference point for ordinary employees, requiring reasonableness in time, territory and scope and a genuine protectable interest. New Mexico appellate courts have produced little published noncompete law since the health care statute took over the most litigated category.
If you have one in hand
What can make a non-compete unenforceable in New Mexico
- Your occupation is carved out. Clinician noncompete ban with an ownership exception; reasonableness for other workers
- The scope is wider than the interest behind it. A restriction that reaches beyond the customers, trade secrets or goodwill the employer can actually point to is the most common reason a covenant fails in New Mexico.
Whether any of these applies turns on the wording of your own agreement, your role and the case law your court follows. This page maps the statutory landscape; it does not replace advice on a specific contract.
FAQ
New Mexico non-compete questions
Are non-compete agreements enforceable in New Mexico?
New Mexico voids noncompete provisions in agreements with licensed health care practitioners once the contract, a renewal, or the employment itself ends, and the list of covered clinicians now runs from physicians and dentists through CRNAs, nurse practitioners, nurse-midwives, PAs, psychologists and pharmacists. The same article kills any attempt to route disputes to another state's law or courts. Workers outside health care get no statutory protection and are judged under the ordinary reasonableness standard.
How long can a non-compete last in New Mexico?
No statutory limit outside the health care article; duration is a reasonableness question for other employees.
Is there a minimum salary for non-competes in New Mexico?
No. New Mexico sets no income floor, so pay alone does not decide whether a covenant binds you. The test is whether the restriction goes further than the employer's legitimate interest requires in time, geography and scope of work.
What notice or consideration does New Mexico require?
No disclosure or waiting period is imposed by statute.
Sources
How this entry was checked
- Primary source. N.M. Stat. Ann. §§ 24A-4-1 to 24A-4-5 (formerly §§ 24-1I-1 to 24-1I-5, recompiled effective July 1, 2024) — the statutory text itself.
- Secondary sources consulted. N.M. Stat. Ann. ch. 24A art. 4, Justia New Mexico Statutes, FindLaw, Managed Care Legal Database, Seyfarth Shaw.
Check it against a third party
None of these is ours. If a figure here matters to a decision, verify it:
- Federal Trade Commission — non-compete hub
- Economic Innovation Group — State Noncompete Law Tracker
- Fair Competition Law (Beck Reed Riden) — 50-state legislation tracker
- GAO-23-103785 — Noncompete Agreements (May 2023)
This page is general legal information published by Jurizmo and is not legal advice, does not create an attorney-client relationship, and may not reflect amendments enacted after the review date above. Consult a licensed attorney in the relevant state before acting on any agreement.