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Are Non-Competes Enforceable in New Mexico?

Last updated: 2026-10-07 · Verified against the statutes 2026-10-07

Enforceable if reasonable

Enforced if reasonable; clinician non-competes end at exit

New Mexico has no general non-compete statute; courts enforce reasonable restraints that do not violate public policy. For covered health care practitioners (physicians, dentists, podiatrists, CRNAs, nurse practitioners, nurse-midwives, psychologists, physician assistants and pharmacists), a non-compete restricting clinical services is unenforceable once the agreement or employment ends, and clauses applying another state's law or forum are void. Practitioners who own part of the practice are excluded.

Check a non-compete

Answer a few questions; the result cites the statute behind each point. Rules verified 2026-10-07. Saved only in your browser.

Thresholds are measured differently by state (salary, cash compensation, W-2 box 1).

Enforceable if reasonable

New Mexico enforces non-competes that protect a legitimate business interest and are reasonable in time, geography and scope.

Other New Mexico rules to check

  • If a court finds it too broad: No settled rule we could confirm.

General information, not legal advice. Enforceability also depends on the exact wording, the employer's legitimate interest and the facts; talk to an employment lawyer before relying on it.

New Mexico non-compete rules

Overbroad covenants
No settled rule we could confirm

Profession-specific rules

  • VoidA non-compete with a physician or osteopathic physician (non-owner) is unenforceable after the agreement or employment ends; patient and employee non-solicits of up to 1 year and certain cost repayments remain allowed. NMSA 24A-4-2 (SB 325, 2015)
  • VoidSame rule for dentists, podiatrists, CRNAs, certified nurse practitioners and nurse-midwives; psychologists, physician assistants and pharmacists were added for agreements executed or renewed on or after April 4, 2023. (effective April 4, 2023) SB 106 (2023, ch. 97)

Recent and pending changes

  • July 1, 2024: Health care practitioner statute recompiled from NMSA 24-1I to 24A-4 (no substantive change). NMSA 24A-4 (Justia)
  • April 4, 2023: SB 106 extends the rule to psychologists, physician assistants and pharmacists. SB 106 (2023) final

Federal law

There is no federal ban on employee non-competes. The FTC's 2024 Non-Compete Clause Rule (16 CFR Part 910), which would have voided most non-competes from September 4, 2024, never took effect: a Texas federal court set it aside nationwide on August 20, 2024 (Ryan LLC v. FTC). On September 5, 2025 the Commission voted 3-1 to drop its appeals and accept that ruling, and on February 12, 2026 it formally removed Part 910 from the Code of Federal Regulations. State law therefore decides whether a non-compete is enforceable.

Frequently asked questions

Are non-competes enforceable in New Mexico?

Enforced if reasonable; clinician non-competes end at exit. New Mexico has no general non-compete statute; courts enforce reasonable restraints that do not violate public policy. For covered health care practitioners (physicians, dentists, podiatrists, CRNAs, nurse practitioners, nurse-midwives, psychologists, physician assistants and pharmacists), a non-compete restricting clinical services is unenforceable once the agreement or employment ends, and clauses applying another state's law or forum are void. Practitioners who own part of the practice are excluded.

Did the FTC ban non-competes in New Mexico?

No. The FTC's 2024 rule never took effect — a federal court set it aside in August 2024, the FTC dropped its appeals in September 2025 and removed the rule from the Code of Federal Regulations in February 2026. State law controls, though the FTC still challenges some non-competes case by case.

Official Sources

Figures checked against these sources on 2026-10-07

Other states

Same category (Enforceable if reasonable): Alaska, Arizona, Connecticut, Delaware, Indiana, Iowa, Kansas, Kentucky

Protect information instead with a confidentiality agreement (NDA generator), or hiring in New Mexico? Use the offer letter generator.

Not legal advice. Enforceability depends on the agreement's wording and the facts; consult an employment attorney licensed in New Mexico.