Non-Compete Laws in South Dakota
Enforceable with limits
South Dakota restricts non-competes for a broad range of healthcare professionals, including physicians, physician assistants, chiropractors, dentists, and optometrists, among others. For other workers, enforceability depends on reasonableness under common law.
Key details
| Enforceability | Enforceable with limits |
|---|---|
| Banned industries | Physicians, physician assistants, chiropractors, dentists, optometrists, and many other healthcare professionals are protected. |
| Blue pencil doctrine | Varies |
| Key statute | S.D. Codified Laws §§53-9-8 et seq. |
What this means for you
If you work in healthcare in South Dakota, your non-compete may be restricted or void.
Non-compete laws in South Dakota: what you need to know
South Dakota restricts non-competes for a broad range of healthcare professionals, including physicians, physician assistants, chiropractors, dentists, and optometrists, among others. This extensive list of protected professions makes South Dakota one of the states with the broadest healthcare-specific non-compete protections.
For workers outside the protected healthcare professions, South Dakota relies on common law standards to evaluate non-compete enforceability. Agreements must be reasonable and protect a legitimate business interest. South Dakota courts have generally been willing to enforce reasonable non-competes in non-healthcare industries.
South Dakota is notable for allowing non-competes of up to two years, which is longer than the statutory maximum in some other states. Courts evaluate the duration as part of the overall reasonableness analysis, and agreements at or below two years are more likely to be deemed reasonable.
Workers in South Dakota should evaluate their non-compete against the traditional reasonableness standards. If you are a healthcare professional on the protected list, your non-compete is likely void. For other workers, the key factors are whether the agreement is narrowly tailored, reasonable in duration and geographic scope, and protects a genuine business interest.
South Dakota's broad list of protected healthcare professions is one of the most extensive in the country. Workers in any of the covered healthcare fields should be aware that their non-compete is likely void or significantly restricted. The specific list of protected professions is defined in the statute, and workers should verify whether their specific role is covered.
For non-healthcare workers in South Dakota, the common law framework applies. Courts evaluate non-competes for reasonableness, with a focus on whether the restriction is proportional to the employer's legitimate interest. South Dakota's allowance of non-competes up to two years is longer than some states, but agreements at or near that limit will face closer scrutiny.
For non-healthcare workers in South Dakota, the two-year maximum duration means that career disruption from a non-compete, while significant, has a defined end point. Workers should plan career transitions with this timeline in mind. If your non-compete restricts you for two years, understanding when the clock starts (typically from the date of separation, not the date of signing) and planning your next steps accordingly can help minimize the impact on your career and finances.
More South Dakota workplace laws
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Frequently asked questions about non-compete laws in South Dakota
The list is broad and includes physicians, physician assistants, chiropractors, dentists, optometrists, and many other licensed healthcare professionals. Check the statute for the complete list.
No. South Dakota does not use an income threshold. Enforceability depends on common law reasonableness standards.
Non-competes of up to two years may be enforceable in South Dakota. Agreements exceeding two years are more likely to be challenged as unreasonable.
South Dakota courts have some discretion to evaluate non-competes, and practices vary. Consult an attorney for guidance on your specific agreement.
Yes. For workers outside the protected healthcare professions, non-competes are evaluated under common law reasonableness standards and may be enforceable if they meet those standards.