New Mexico employment contract template

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How New Mexico employment contract Differ from Other States

  1. New Mexico follows a strict at-will employment doctrine, allowing either party to terminate employment at any time without cause.

  2. State statutes require unique compliance with the New Mexico Minimum Wage Act, which may differ from federal or other state mandates.

  3. New Mexico law has specific provisions on non-compete clauses, often limiting their enforceability compared to other states.

Frequently Asked Questions (FAQ)

  • Q: Is a written employment contract required in New Mexico?

    A: No, written contracts are not legally required, but having a written agreement is recommended for clarity and legal protection.

  • Q: Can an employer include a non-compete clause in a New Mexico employment contract?

    A: Yes, but non-compete clauses are generally disfavored and may be deemed unenforceable if overly broad or restrictive.

  • Q: Does the New Mexico employment contract need to specify vacation and sick leave?

    A: No, the law does not require these details, but best practices encourage including them to avoid future disputes.

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New Mexico Employment Contract

This Employment Contract (the "Agreement") is made and entered into as of [Date], by and between [Employer Legal Name], a [Employer Business Entity Type] with its principal place of business at [Employer Address] ("Employer"), and [Employee Full Legal Name], residing at [Employee Address] ("Employee").

1. Position

  • Option A: Employee shall be employed in the position of [Job Title].
  • Option B: The Employee's duties shall include, but not be limited to: [Detailed Job Description and Primary Duties].
  • Option C: The Employee will report to [Reporting Structure, e.g., "the CEO"].
  • Option D: The Employee's primary work location will be [Work Location(s)].

2. Employment Type

  • Option A: Full-Time Employment
  • Option B: Part-Time Employment
  • Option C: Seasonal Employment
  • Option D: Temporary Employment
  • Option E: Exempt Employee (under the Fair Labor Standards Act)
  • Option F: Non-Exempt Employee (under the Fair Labor Standards Act)

3. Term of Employment

  • Option A: At-Will Employment: The Employer and Employee acknowledge and agree that this is an "at-will" employment relationship. Either party may terminate the employment relationship at any time, with or without cause or notice, subject to applicable law. This at-will provision does not alter Employee's rights to earned but unpaid wages or legally protected leave.
  • Option B: Fixed-Term Employment
    • The term of employment shall commence on [Start Date] and shall continue until [End Date].
    • Renewal: This Agreement may be renewed upon mutual written agreement of both parties prior to the End Date.
    • Performance Review: The Employee's performance will be reviewed on [Date/Frequency of Performance Review].

4. Compensation and Benefits

  • Option A: Base Salary
    • The Employee's base salary shall be [Salary Amount] per [Pay Period: e.g., "year", "month", "week"], payable [Pay Schedule: e.g., "bi-weekly", "monthly"].
  • Option B: Hourly Wage
    • The Employee's hourly wage shall be [Hourly Wage Amount].
  • Option C: Overtime
    • The Employee shall be compensated for overtime hours worked in accordance with the Fair Labor Standards Act and New Mexico law. Overtime will be paid at a rate of one and one-half (1.5) times the Employee's regular hourly rate for all hours worked over 40 in a workweek.
  • Option D: Bonuses/Commissions/Incentives
    • The Employee may be eligible for bonuses, commissions, or other incentives as determined by the Employer in its sole discretion.
  • Option E: Payroll Deductions
    • Allowable payroll deductions will be made in accordance with applicable law.
  • Option F: Benefits
    • Health Insurance: The Employee will be eligible to participate in the Employer's health insurance plan, subject to the terms and conditions of the plan.
    • Dental Insurance: The Employee will be eligible to participate in the Employer's dental insurance plan, subject to the terms and conditions of the plan.
    • Vision Insurance: The Employee will be eligible to participate in the Employer's vision insurance plan, subject to the terms and conditions of the plan.
    • Life Insurance: The Employee will be eligible for life insurance coverage as described in the Employer's benefits summary.
    • Disability Insurance: The Employee will be eligible for short-term and/or long-term disability insurance coverage as described in the Employer's benefits summary.
    • Retirement Plan: The Employee will be eligible to participate in the Employer's [401(k) or other retirement plan], subject to the terms and conditions of the plan.
    • Sick Leave: The Employee will accrue sick leave in accordance with New Mexico law and the Employer's sick leave policy.
    • Vacation and Paid Time Off (PTO): The Employee will accrue vacation and PTO in accordance with the Employer's PTO policy.
    • Family or Medical Leave: The Employee will be eligible for family or medical leave in accordance with the Family and Medical Leave Act (FMLA) and any applicable New Mexico state laws.
    • Holidays: The Employee will be entitled to [Number] paid holidays per year, as designated by the Employer.
    • Employee Assistance Program (EAP): The Employee will be eligible to participate in the Employer's EAP.

5. Work Schedule

  • Option A: Daily Hours: The Employee's standard daily work schedule will be [Number] hours per day.
  • Option B: Weekly Hours: The Employee's standard workweek will be [Number] hours per week.
  • Option C: Meal and Rest Breaks: The Employee will be provided meal and rest breaks in accordance with New Mexico and federal law.
  • Option D: Location Flexibility: The Employee's work location will be [Specify: e.g., "primarily remote", "hybrid", "onsite"], subject to the Employer's policies.
  • Option E: Overtime and Schedule Changes: The Employer may require the Employee to work overtime or adjust their schedule as needed.

6. Code of Conduct and Work Standards

  • Option A: Workplace Behavior: The Employee shall conduct themselves in a professional and respectful manner at all times.
  • Option B: Dress Code: The Employee shall adhere to the Employer's dress code, as outlined in the Employee Handbook.
  • Option C: Use of Company Equipment: The Employee shall use company equipment responsibly and in accordance with the Employer's policies.
  • Option D: Prohibited Activities: The Employee shall not engage in any prohibited activities, as outlined in the Employee Handbook.
  • Option E: Compliance with Company Handbooks: The Employee shall comply with all policies and procedures outlined in the Employer's Employee Handbook.
  • Option F: Anti-Harassment and Non-Discrimination: The Employer is committed to providing a workplace free of harassment and discrimination. The Employee shall abide by all anti-harassment and non-discrimination policies.
  • Option G: Mandatory Training/Certifications: Employee will complete any mandatory training/certifications required by the Employer by [Date or Timeline].

7. Confidentiality and Intellectual Property (IP)

  • Option A: Confidentiality: The Employee agrees to maintain the confidentiality of the Employer's confidential information during and after employment.
  • Option B: Non-Disclosure: The Employee shall not disclose the Employer's confidential information to any third party without the Employer's prior written consent.
  • Option C: Ownership of Inventions/Work Product: All inventions, discoveries, and work product created by the Employee during the course of their employment shall be the sole and exclusive property of the Employer.
  • Option D: Return of Company Materials: Upon termination of employment, the Employee shall return all company materials, including documents, data, and equipment, to the Employer.

8. Restrictive Covenants

  • Option A: Non-Compete (Note: Carefully consider enforceability under New Mexico law, especially in healthcare): The Employee agrees not to engage in any business activities that are competitive with the Employer's business within [Geographic Area] for a period of [Duration] following termination of employment.
  • Option B: Non-Solicitation: The Employee agrees not to solicit the Employer's employees, customers, or clients for a period of [Duration] following termination of employment.
  • Option C: Non-Disparagement: The Employee agrees not to disparage the Employer, its products, or its services at any time.

9. Separation and Termination

  • Option A: Voluntary Resignation: The Employee shall provide the Employer with [Number] days' written notice of their intention to resign.
  • Option B: Termination for Cause: The Employer may terminate the Employee's employment for cause, as defined by applicable law.
  • Option C: Termination Without Cause: The Employer may terminate the Employee's employment without cause, subject to applicable law.
  • Option D: Severance: In the event of termination without cause, the Employee may be eligible for severance benefits, as determined by the Employer.
  • Option E: Final Pay: The Employee's final paycheck, including all earned but unpaid wages, will be provided in accordance with the New Mexico Wage Payment Act.

10. Dispute Resolution

  • Option A: Mediation: The parties agree to attempt to resolve any disputes arising out of or relating to this Agreement through mediation before resorting to litigation or arbitration.
  • Option B: Arbitration: Any dispute arising out of or relating to this Agreement shall be resolved by binding arbitration in accordance with the rules of the American Arbitration Association.
  • Option C: Governing Law and Jurisdiction: This Agreement shall be governed by and construed in accordance with the laws of the State of New Mexico. The exclusive jurisdiction and venue for any legal action arising out of or relating to this Agreement shall be in the state or federal courts located in [County], New Mexico.

11. Workplace Safety and Workers' Compensation

  • Option A: Compliance: The Employer shall comply with all applicable federal OSHA regulations and the New Mexico Occupational Health and Safety Act.
  • Option B: Health and Safety Standards: The Employee shall adhere to the Employer's workplace health and safety standards and training requirements.
  • Option C: Incident Reporting: The Employee shall report any workplace accidents or incidents to the Employer immediately.
  • Option D: Workers' Compensation: The Employer shall provide workers' compensation insurance coverage for the Employee in accordance with New Mexico law.

12. Anti-Discrimination and Equal Employment Opportunity

  • Option A: Non-Discrimination: The Employer is an equal opportunity employer and does not discriminate on the basis of age, race, color, national origin, sex, sexual orientation, gender identity, religion, disability, pregnancy, or any other protected category under federal or New Mexico law.
  • Option B: Anti-Harassment: The Employer prohibits harassment of any kind and will take appropriate action to address any incidents of harassment.
  • Option C: No Retaliation: The Employer prohibits retaliation against any employee who reports discrimination or harassment.

13. Company Policies

  • Option A: Training: The Employee may be required to participate in training programs as determined by the Employer.
  • Option B: Background Checks: The Employee's employment may be contingent upon the successful completion of a background check.
  • Option C: Drug Testing: The Employee may be subject to drug testing in accordance with the Employer's drug testing policy and applicable law.

14. Acknowledgments

  • Option A: Employee Handbook: The Employee acknowledges receipt of the Employer's Employee Handbook.
  • Option B: Wage Notice: The Employee acknowledges receipt of a wage notice as required by New Mexico law.
  • Option C: At-Will Disclaimer: If applicable, the Employee acknowledges that their employment is at-will, as described above.
  • Option D: Entire Agreement: This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior or contemporaneous communications and proposals, whether oral or written.
  • Option E: Amendment: This Agreement may be amended only by a written instrument signed by both parties.
  • Option F: Waiver: No waiver of any provision of this Agreement shall be effective unless in writing and signed by the party against whom the waiver is sought to be enforced.
  • Option G: Severability: If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.
  • Option H: Assignment: This Agreement may not be assigned by the Employee without the prior written consent of the Employer.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

[Employer Legal Name]

By: [Employer Representative Name]

Title: [Employer Representative Title]

[Employee Full Legal Name]

Signature: ____________________________

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