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State Law

New Mexico Statutes Ann-Chapter 24-Article 1I. Health Care Practitioner Agreements

06/04/2025 New Mexico Sections 24A-4-1 through 24A-4-5

Definitions; Enforceability of a non-compete provision, other provisions void; Enforceability of other provisions; Liquidated damages; Applicability

Restrictive Covenants

Section 24A-4-1. Definitions

As used in Chapter 24, Article 1I NMSA 1978:

A. “agreement” means a written contract to which a health care practitioner is a party; and

B. “health care practitioner” means:

(1) a dentist;

(2) an osteopathic physician;

(3) a physician;

(4) a podiatrist;

(5) a certified registered nurse anesthetist;

(6) a certified nurse practitioner; and

(7) a certified nurse-midwife.

Section 24A-4-2. Enforceability of a non-compete provision, other provisions void

A. 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.

B. 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.

Section 24A-4-3. Enforceability of other provisions

Nothing in this act shall be construed to limit the enforceability of:

A. 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:

(1) a loan;

(2) relocation expenses;

(3) a signing bonus or other remuneration to induce the health care practitioner to relocate or establish a health care practice in a specified geographic area; or

(4) recruiting, education and training expenses;

B. a nondisclosure provision relating to confidential information and trade secrets;

C. a non-solicitation 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

D. any other provision of an agreement that is not in violation of law, including a provision for liquidated damages.

Section 24A-4-4. Liquidated damages

A. An agreement may provide for liquidated damages in an amount that is reasonable at the time the agreement is executed and in light of anticipated harm and difficulty of proving the amount of loss resulting from breach of the agreement by any party.

B. A provision in an agreement fixing unreasonably large liquidated damages is void as a penalty.

Section 24A-4-5. Applicability

A. Chapter 24, Article 1I NMSA 1978 does not apply to agreements between health care practitioners who are shareholders, owners, partners or directors of a health care practice.

B. Except as provided by Subsection C of this section, the provisions of Chapter 24, Article 1I NMSA 1978 apply to agreements, or renewals or extensions of agreements, executed on or after July 1, 2015.

C. The provisions of Subsection B of Section 24-1I-2 NMSA 1978 apply to agreements, or renewals or extensions of agreements, executed on or after the effective date of this 2017 act.

See https://law.justia.com/codes/new-mexico/chapter-24a/article-4/