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

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.