Non-compete laws · SD
South Dakota physician non-compete law
As of October 21, 2026, South Dakota law generally makes non-compete agreements void or unenforceable for physicians, with exceptions.
Generally banned for physiciansChecked 2026-10-21
Contract provisions entered on or after July 1, 2023 that restrict a listed practitioner, including physicians, from practicing after employment or a partnership ends are voidable. Exceptions: sale of a practice or interest, and patient non-solicitation within the general two-year, defined-area limits. (SDCL § 53-9-11.2)
Limits in the law
- Permitted patient/client non-solicitation provisions must comply with the geographic and temporal limits of SDCL 53-9-11 (up to 2 years; specified county, first- or second-class municipality, or other specified area)
- 'Soliciting' means a targeted affirmative act directed at a former employer's patient or client to convince them to transfer care or business
Who it covers
28 categories of licensed 'practitioners' in SDCL 53-9-11.1, including physicians, physician assistants, CNPs and CNMs, CRNAs, RNs, LPNs, dentists, optometrists, podiatrists, chiropractors, pharmacists, psychologists, PTs, OTs, paramedics/EMTs and others. Since 2026-07-01 also community services providers serving people with developmental disabilities.
Exceptions
- Provision effective upon the sale of a practice or interest in a practice
- Restriction on soliciting current patients or clients of the former employer/partnership, if within SDCL 53-9-11 geographic and temporal limits
- Separately, SDCL 53-9-10.1 (2026 HB 1180, eff. 2026-07-01) lets business-entity owners agree, in governing documents or ownership-transfer contracts, not to compete for up to 3 years after transferring their interest
Effective date
The current rule took effect 2023-07-01.
Notes
The statute uses 'voidable'. A 2021 law first barred physician and nurse noncompetes; the 2023 law replaced it and expanded coverage to 28 professions. 2026 laws added community services providers (SB 153) and an owner-transfer provision (HB 1180, SDCL 53-9-10.1) whose interaction with practitioner-owners is not addressed.
Sources
- SDCL § 53-9-11.2 (statute)
- SDCL § 53-9-11.1 (practitioner definition) (statute)
- 2023 HB 1185, enrolled (SL 2023, ch 160) (session-law)
- 2026 SB 153, enrolled (SL 2026, ch 196) (session-law)
Questions to ask about your contract
- Is the radius measured from your practice site or from every location the employer owns?
- Does the restriction apply if the employer terminates you without cause?
- Is there a buyout, and how is the amount calculated?
- What does your state's law say about physician non-competes?
Not legal advice. This page summarizes the law as written. Whether a particular agreement is enforceable depends on its wording, when it was signed and court decisions. Ask an attorney licensed in South Dakota.