Non-Solicitation Agreements in New Mexico: Enforceability
New Mexico's Common Law Approach
New Mexico does not have a specific statute governing non-solicitation agreements. Courts evaluate these clauses under common law, applying a reasonableness standard. New Mexico courts have addressed restrictive covenants in cases such as Bowen v. Carlsbad Insurance & Real Estate and Insure New Mexico v. McGonigle, establishing that non-solicitation clauses are enforceable when narrowly tailored.
Enforceability Factors
New Mexico courts examine non-solicitation clauses through several lenses:
- Protectable interest: The employer must demonstrate a legitimate business interest, such as established customer relationships, trade secrets, or proprietary information
- Reasonable scope: The restriction must be limited to customers with whom the employee had direct business dealings
- Reasonable duration: Courts favor restrictions of one to two years. New Mexico courts are generally skeptical of longer periods
- Not overly burdensome: The clause cannot prevent the employee from earning a living in their chosen profession
- Consideration: Employment is generally sufficient consideration for agreements signed at hiring. Mid-employment agreements may need additional consideration
New Mexico's Skepticism of Broad Restrictions
New Mexico courts have expressed skepticism toward overly broad restrictive covenants. The state's legal tradition favors employee mobility and disfavors restraints on trade. This means employers bear a significant burden to demonstrate that a non-solicitation clause is necessary and reasonable.
Red Flags
- Restrictions covering all of the employer's customers rather than just your clients
- Duration exceeding two years
- No distinction between active solicitation and passive acceptance of business
- Vague or undefined terms regarding what constitutes solicitation
- No additional consideration for agreements signed after the start of employment
When to Consult a Lawyer
Consider reaching out to a New Mexico employment attorney if your non-solicitation agreement seems broader than your actual client responsibilities, if you are leaving for a competitor and need to understand your restrictions, or if a former employer is pursuing enforcement.
This article is for informational purposes only and does not constitute legal advice. Consult a licensed attorney for guidance specific to your situation.