New Mexico non-compete law

Pay figure in the law

None found in the statutes we read

Separate rules for professions

None found in the statutes we read

Statutes and official texts quoted

NMSA 1978, § 24A-4-2(A); NMSA 1978, § 24A-4-1(B); NMSA 1978, § 24A-4-5(A); NMSA 1978, § 24A-4-3(B)-(C); NMSA 1978, § 24A-4-3(A); NMSA 1978, § 24A-4-2(B); NMSA 1978, § 24A-4-4; NMSA 1978, § 24A-4-5(B)

Is a non-compete allowed?

For listed health care practitioners, a non-compete restricting clinical health care services in New Mexico is unenforceable once the agreement, its renewal, or the practitioner's employment ends.

“A non-compete provision in an agreement, which provision restricts the right of a health care practitioner to provide clinical health care services in this state, shall be unenforceable upon the termination of:”
NMSA 1978, § 24A-4-2(A)

Who is covered

The health care practitioner rule covers dentists, osteopathic physicians, physicians, podiatrists, certified registered nurse anesthetists, certified nurse practitioners, certified nurse-midwives, psychologists, physician assistants and pharmacists.

“(5) a certified registered nurse anesthetist; (6) a certified nurse practitioner; (7) a certified nurse-midwife; (8) a psychologist; (9) a physician assistant; and (10) a pharmacist.”
NMSA 1978, § 24A-4-1(B)

The health care practitioner rule does not apply to agreements between practitioners who are shareholders, owners, partners or directors of a health care practice.

“does not apply to agreements between health care practitioners who are shareholders, owners, partners or directors of a health care practice.”
NMSA 1978, § 24A-4-5(A)

Exceptions

The rule does not limit nondisclosure provisions on confidential information and trade secrets, or nonsolicitation provisions covering patients and employees for one year or less after employment ends.

“B. a nondisclosure provision relating to confidential information and trade secrets; C. a nonsolicitation provision with respect to patients and employees of the party seeking to enforce the agreement for a period of one year or less after the last date of employment; or”
NMSA 1978, § 24A-4-3(B)-(C)

The rule does not limit provisions requiring a practitioner who worked for an employer for less than three years to repay all or part of a loan, relocation expenses, a signing bonus, or recruiting, education and training expenses.

“a provision in an agreement requiring a health care practitioner who has worked for an employer for an initial period of less than three years to repay all or a portion of:”
NMSA 1978, § 24A-4-3(A)

If it is challenged

An agreement may set reasonable liquidated damages; an unreasonably large liquidated damages provision is void as a penalty.

“A provision in an agreement fixing unreasonably large liquidated damages is void as a penalty.”
NMSA 1978, § 24A-4-4

Which state’s law and court

In an agreement for clinical health care services in New Mexico, a provision making the agreement subject to another state's laws, or requiring litigation in another state, is void and unenforceable.

“A provision in an agreement for clinical health care services to be rendered in this state is void, unenforceable and against public policy if the provision: (1) makes the agreement subject to the laws of another state; or (2) requires any litigation arising out of the agreement to be conducted in another state.”
NMSA 1978, § 24A-4-2(B)

When the rules took effect

The health care practitioner rule generally applies to agreements, renewals or extensions executed on or after July 1, 2015 (later dates apply to the choice-of-law/forum rule and to psychologists, physician assistants and pharmacists).

“apply to agreements, or renewals or extensions of agreements, executed on or after July 1, 2015.”
NMSA 1978, § 24A-4-5(B)

Federal rules

On September 5, 2025, the FTC moved to dismiss its appeals in Ryan, LLC v. FTC and Properties of the Villages v. FTC and to accede to vacatur of the Non-Compete Clause Rule. FTC press release, Sept. 5, 2025

The FTC's final rule removes the Non-Compete Rule (16 CFR part 910) from the Code of Federal Regulations. 91 Fed. Reg. (Feb. 12, 2026), FR Doc. 2026-02866

Before you sign, or before you assume you are bound

1. Find every restrictive clause: non-compete, non-solicitation, no-hire and confidentiality are separate promises with separate rules.
2. Note how long each lasts and what area or customers it covers.
3. Check which state’s law the agreement picks and where disputes must be heard.
4. Compare your pay and your job with the New Mexico rules above.

Check your state with the non-compete checker.

Common questions

Are non-competes enforceable in New Mexico?

For listed health care practitioners, a non-compete restricting clinical health care services in New Mexico is unenforceable once the agreement, its renewal, or the practitioner's employment ends. (NMSA 1978, § 24A-4-2(A)).