A New Mexico non-solicitation agreement is a legal document that prevents an employee from engaging in business with their employer’s clients or staff for their own benefit. This type of contract can also be used to protect the buyer of a company by prohibiting the seller from soliciting prior customers and employees after selling their business. The terms of the agreement will include its duration, geographical limits, and a list or description of the customers and employees who the signee is prohibited from soliciting.
- Statutes: N/A
- Legally Enforceable? Yes, as long as the agreement’s limitations are reasonable.
- The terms of the contract must be limited to what can be found necessary to protect the owner’s legitimate business interests (Nichols v. Anderson, 92 P.2d 781, 783 (1939)).
- For employee/patient solicitation, the maximum contract term is one (1) year following the healthcare practitioner’s last date of employment (§ 24-1i-3(C)).
New Mexico Non-Compete Agreement – Limits an employee’s ability to compete against their employer’s business.
New Mexico Non-Disclosure Agreement – Used to legally prohibit employees from disclosing company information, practices, and trade secrets.