The form should also state all other pertinent details, such as any geographical limitations, whether the signing party can purchase a release, and what they can expect in the way of consideration for signing.
- Statutes: § 53-9-11, § 53-9-12
- Legally Enforceable? Yes, if they comply with South Dakota law (How. Vent. LLC v. Lively, CIV. 10-4072-KES (2010)).
- Requirements (§ 53-9-11, § 53-9-12): An agreement that restricts an employee from soliciting an employer’s customers may not be longer than two (2) years. The two-year limitation also applies to captive insurance agents operating as independent contractors.
- Exceptions (§ 53-9-11.1): Healthcare workers are not permitted to sign any agreement that would prevent them from establishing a provider-patient relationship.
Related Forms (2)
South Dakota Non-Compete Agreement – Prevents an employee from entering into competition with their former employer for a specified duration and area.
Download: PDF, Word (.docx), OpenDocument
South Dakota Non-Disclosure Agreement – A contract that specifies that an employee may not disclose confidential information to unauthorized parties.
Download: PDF, Word (.docx), OpenDocument