Non-compete laws · NM

New Mexico physician non-compete law

As of October 21, 2026, New Mexico law generally makes non-compete agreements void or unenforceable for physicians, with exceptions.

Generally banned for physiciansChecked 2026-10-21

Noncompete provisions restricting covered health care practitioners, including physicians, from providing clinical services are unenforceable once the agreement or employment ends. The law excludes agreements among practice owners, shareholders, partners or directors, and does not bar limited nonsolicitation, nondisclosure, repayment and reasonable liquidated-damages provisions. (N.M. Laws 2015, ch. 96 (SB 325), Health Care Practitioner Agreement Act, final)

Limits in the law

  • Nonsolicitation of patients and employees remains enforceable only for one year or less after the last date of employment
  • Liquidated damages must be reasonable when the agreement is executed; unreasonably large liquidated damages are void as a penalty
  • A provision making the agreement subject to another state's law, or requiring litigation in another state, is void for clinical services rendered in New Mexico (agreements executed on/after April 6, 2017)

Who it covers

Dentists, physicians, osteopathic physicians, podiatrists, certified registered nurse anesthetists, certified nurse practitioners, certified nurse-midwives, psychologists, physician assistants and pharmacists. Applies to agreements, renewals or extensions executed on/after July 1, 2015 (for psychologists, PAs and pharmacists, on/after the 2023 act's effective date).

Exceptions

  • Does not apply to agreements between health care practitioners who are shareholders, owners, partners or directors of a health care practice (NMSA 24-1I-5(A))
  • Repayment of loans, relocation expenses, signing bonuses or recruiting/education/training expenses by a practitioner who worked for the employer for an initial period of less than three years
  • Nondisclosure provisions on confidential information and trade secrets
  • Nonsolicitation of patients and employees for one year or less
  • Other lawful provisions, including reasonable liquidated damages

Effective date

The current rule took effect 2015-07-01.

Notes

Agreements among practice owners are excluded. The noncompete becomes unenforceable when the agreement or employment ends; the Act sets no mileage or month cap and has no sale-of-practice exception. Covered since July 1, 2015 for physicians; psychologists, PAs and pharmacists were added in 2023 (SB 106).

Sources

Questions to ask about your contract

  • Is the radius measured from your practice site or from every location the employer owns?
  • Does the restriction apply if the employer terminates you without cause?
  • Is there a buyout, and how is the amount calculated?
  • What does your state's law say about physician non-competes?
Check a contract against New Mexico lawAll states

Not legal advice. This page summarizes the law as written. Whether a particular agreement is enforceable depends on its wording, when it was signed and court decisions. Ask an attorney licensed in New Mexico.