A New Mexico non-compete agreement is a written contract in which a worker promises not to compete with a company during the job and for a set time afterward. For health care practitioners, the state's statute makes a non-compete provision unenforceable once the employment ends.[1.2] You can also start from the general non-compete agreement template.
Last Updated: October 2026. This guide is reviewed and updated regularly to reflect current New Mexico law. If you notice an error or outdated information, please contact us.
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The free New Mexico non-compete agreement template is a three-page form between an Agent, who is an employee or independent contractor, and a Company. It suits an employer in Albuquerque or anywhere else in New Mexico, because it names New Mexico law and asks for a New Mexico county. These are its parts:
The form says it is not a contract of employment. It has no confidentiality clause. If you need one, ask an attorney how to add it. For contractors, FormsPal also has an independent contractor non-compete agreement template and an independent contractor agreement.
New Mexico regulates non-compete agreements with health care practitioners in NMSA 1978, 24A-4-1(A) to 24A-4-5(A). The statute says which written contracts it covers. It also sets rules for when a restriction ends, which state's law applies, what a practitioner may have to repay, and liquidated damages.[1.1]
| Topic | What the statute says |
|---|---|
| When a restriction ends | A restriction on clinical health care services is unenforceable once the agreement, a renewal or extension, or the practitioner's employment with the enforcing party ends.[1.2] |
| Another state | A provision that applies another state's law or requires litigation in another state is void.[1.2] |
| Repayment | The statute does not limit repayment terms for a practitioner who worked for an initial period of less than three years.[1.3] |
| Liquidated damages | A reasonable amount is allowed. An unreasonably large amount is void as a penalty.[1.4] |
| Owners and partners | The statute does not apply to agreements between practitioners who are owners, partners or directors of a practice.[1.5] |
The statute defines an agreement as a written contract to which a health care practitioner is a party.[1.1] It does not apply to agreements between health care practitioners who are shareholders, owners, partners or directors of a health care practice.[1.5] This page does not state a rule for other kinds of workers. Ask a New Mexico attorney about any other situation. Owners who need an agreement among themselves can start from the New Mexico LLC operating agreement template.
The statute deals with a provision that restricts the right of a health care practitioner to provide clinical health care services in New Mexico. That provision is unenforceable upon the termination of the agreement, a renewal or extension of it, or the practitioner's employment with the party seeking to enforce it. Here are the statute's words:
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: (1) the agreement; (2) a renewal or extension of the agreement; or (3) a health care practitioner's employment with a party seeking to enforce the agreement.
A provision in an agreement for clinical health care services to be rendered in New Mexico is void, unenforceable and against public policy if it makes the agreement subject to the laws of another state. The same is true if it requires any litigation arising out of the agreement to be conducted in another state.[1.2]
The statute does not limit the enforceability of a provision that requires a health care practitioner to repay money after working for an employer for an initial period of less than three years. The money can be:[1.3]
An agreement may also provide for liquidated damages, which is a sum the agreement sets in advance for a breach. The amount must be reasonable when the agreement is executed (signed) and in light of the anticipated harm and the difficulty of proving the loss from a breach by any party. A provision fixing unreasonably large liquidated damages is void as a penalty.[1.4]
These tips come from common practice, not from the statute. They help the agreement say clearly what both sides agreed. Read every section before you write anything in, then fill in each blank that applies.
The short answers below come from the verified text of NMSA 1978, 24A-4 and from the template itself. They cover what voids a provision, when a health care non-compete stops being enforceable, and what the non-solicitation clause says. For a specific situation, contact a New Mexico attorney.
For a health care practitioner in New Mexico, a provision is void, unenforceable and against public policy if it makes the agreement subject to the laws of another state or requires litigation in another state.[1.2] A provision fixing unreasonably large liquidated damages is void as a penalty.[1.4]
For health care practitioners, a non-compete provision on clinical health care services in New Mexico is unenforceable once the agreement, a renewal or extension of it, or the practitioner's employment with the party enforcing it ends.[1.2] The statute does not limit repayment terms for the first three years of work.[1.3] It also allows liquidated damages in a reasonable amount.[1.4]
Under the New Mexico statute, a health care non-compete can fail in three ways:
The first two points come from section 24A-4-2(A)[1.2] and the third from section 24A-4-4(A).[1.4]
The statute does not limit a repayment provision if the practitioner worked for the employer for an initial period of less than three years. It can cover a loan, relocation expenses, a signing bonus or other pay meant to induce the practitioner to relocate, or recruiting, education and training expenses.[1.3]
During the Term, and without the Company's express written consent, the Agent will not disturb, hire, entice away or persuade any employee, contractor, customer or vendor of the Company to change or end their relationship with the Company.
General information, not legal or tax advice.
The New Mexico rules on this page come from the statute listed below. It covers written agreements with health care practitioners, when a restriction ends, repayment terms and liquidated damages. Check the current text before you rely on it.
