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Can I require employees to sign non-compete agreements in New Mexico? What are the requirements?

Non-Compete Agreements in New Mexico

In New Mexico, non-compete agreements are generally enforceable, but there are certain requirements that employers must follow. According to [5], the New Mexico Court of Appeals has considered the validity of non-compete agreements in employment contracts and has found that they are legally valid. However, employers must ensure that the non-compete agreements meet certain requirements.

Requirements for Non-Compete Agreements in New Mexico

According to [5], non-compete agreements in New Mexico must meet the following requirements:

  • The agreement must be supported by consideration, such as a job offer or a promotion.
  • The agreement must be reasonable in scope, duration, and geographic area.
  • The agreement must protect a legitimate business interest, such as trade secrets or customer relationships.

Low-Wage Employees

It is important to note that in New Mexico, employers cannot require low-wage employees to sign non-compete agreements. According to [3], a bill was passed in New Mexico that prohibits employers from requiring low-wage employees to sign non-compete agreements. Low-wage workers are defined as those who earn less than a certain amount per hour.

Conclusion

In summary, non-compete agreements are generally enforceable in New Mexico, but employers must ensure that they meet certain requirements. Additionally, employers cannot require low-wage employees to sign non-compete agreements.

Source(s):
Jurisdiction

New Mexico