Generally speaking, in New Mexico, a covenant not to compete means that the employee will agree not to work for any of their employer's competitors when leaving the company. Such agreements are also known by the term "non-compete clauses". An employee who signs a covenant not to compete can receive compensation for the agreement, or in some cases the agreement is a condition for their being hired.

When are Covenants not to Compete Unenforceable?

Whether or not a judge will conclude that the covenant is enforceable can be challenging to know beforehand. While employer's interest are important, the courts of New Mexico also put a high level of importance on a person's ability to pursue their desired employment opportunities. Consequently, a court will generally only uphold non-compete clauses which under the circumstances are considered to be reasonable. A court will normally hold non-compete clauses to be unreasonable if they involve unusually long periods of time or if they cover a geographic region surrounding Carlsbad that is excessively large.

Covenants must also be limited to restricting dealings with those competitors that are reasonably related to the employer?s industry. Finally, there must be a valid business interest which motivates the employer's mandating a covenant not to compete.

Do I Need an Attorney when Dealing with a Covenant not to Compete?

Since covenants could restrict your rights, you may wish to hire a Carlsbad, New Mexico lawyer to review any agreements. They will be able to negotiate further changes to the covenant, and can draft an entirely new one that is acceptable to all parties if needed. Attorneys can provide valuable counseling to employers who are contemplating suing an employer who breached a covenant not to compete. They can also assist employees who have signed an agreement limiting their employment options.