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Non-Compete Laws in South Dakota

South Dakota lets an employee agree, at hiring or during employment, not to compete for up to two years after the agreement ends; non-competes with licensed health care practitioners made on or after July 1, 2023 are voidable.

Last checked . General information, not legal advice.

South Dakota at a glance

Status
Allowed by statute, up to 2 years
Up to two years, and only where the employer continues to carry on a like business.
Enforceable against employees
Yes, within statutory limits
Health care practitioners (since July 1, 2023) and community services providers (since July 1, 2026) can void non-competes.
Salary threshold
No salary threshold
The statute sets no minimum salary.
Advance notice required
No
The agreement can be made at hiring or at any time during employment.

Sources

Last checked

The rules in South Dakota

Are employee non-compete agreements banned, restricted or enforceable in South Dakota?

Status in South Dakota: Allowed by statute, up to 2 years. Up to two years, and only where the employer continues to carry on a like business.

Can an employer enforce a non-compete against an employee in South Dakota?

Yes, within statutory limits. Enforceable against employees in South Dakota: yes, within statutory limits. Health care practitioners (since July 1, 2023) and community services providers (since July 1, 2026) can void non-competes.

Is there a minimum salary for a non-compete to be enforceable in South Dakota?

Salary threshold in South Dakota: No salary threshold. The statute sets no minimum salary.

Does South Dakota require employers to give advance notice of a non-compete?

No. Advance notice required in South Dakota: no. The agreement can be made at hiring or at any time during employment.

Where do the South Dakota non-compete laws come from?

The rules above come from SDCL 53-9-8, SDCL 53-9-11 and SDCL 53-9-11.2. Each source is linked on this page. We last checked them in October 2026.

Good to know

A 2026 amendment extends the voidability rule to community services providers for developmental disabilities, for contracts made on or after July 1, 2026.

What this means in practice

Read the restriction closely before signing. Note how long it lasts, the area it covers, which activities it bars and which state's law the contract says applies. A choice-of-law clause does not always control, because some states refuse to apply another state's law to their own residents or workers.

Salary thresholds are often adjusted every year for inflation. If a state uses a threshold, check the figure for the year the agreement was signed or is being enforced, and how the statute defines earnings.

A non-compete is different from a non-solicitation or confidentiality agreement. Many states that limit non-competes still allow narrower clauses that protect trade secrets or customer lists. An employment lawyer can explain how the rules apply to a specific agreement.

General information, not legal advice. Laws change, and cities can add their own rules, so check the current statute before you rely on it.