South Dakota Non-Compete Agreement Template
Reviewed by the Agiled editorial teamUpdated June 2026
Non-compete law is the most state-divergent area in employment contracting — four states ban these agreements outright, a dozen more impose salary floors or notice rules, and the rest apply judge-made reasonableness tests that differ in temperament. This page covers what South Dakota requires; the download is our standard non-compete template, to be scoped to South Dakota's rules below.
South Dakota non-compete rules at a glance
| Enforceability | Statutorily authorized (SDCL §53-9-11): up to 2 years within a specified area. |
|---|---|
| Protected workers / thresholds | Health-care practitioner limits added; others covered |
| Required formalities | Must fit the statutory template (2-year/specified-territory) |
| Overbroad agreements | Enforced per the statute; terms outside the template are vulnerable |
State laws change frequently and this summary is not legal advice. Verify current rules against the state statute or with a licensed attorney before relying on them.
How South Dakota handles non-compete agreements
South Dakota flips the default — the statute affirmatively permits two-year territorial non-competes — making it one of the few states where the legislature, not the courts, sets the outer boundary. The practical drafting rule for South Dakota: statutorily authorized (SDCL §53-9-11): up to 2 years within a specified area.. Before using this template, confirm the current statute — non-compete law has changed in more than a dozen states since 2020, and the FTC's federal ban attempt keeps the area moving.
South Dakota non-compete agreement FAQs
Are non-compete agreements enforceable in South Dakota?
Statutorily authorized (SDCL §53-9-11): up to 2 years within a specified area. Coverage limits matter here: health-care practitioner limits added; others covered.
What happens to an overbroad non-compete in South Dakota?
Enforced per the statute; terms outside the template are vulnerable Draft to the narrowest restriction that protects the actual business interest — the safety net (or lack of one) above is what you're betting on.
What formalities does a South Dakota non-compete require?
Must fit the statutory template (2-year/specified-territory) Procedural failures are now the most common way non-competes die — more common than substantive overbreadth in states with notice rules.
Does the FTC non-compete ban apply in South Dakota?
The FTC's 2024 rule banning most non-competes was set aside by a federal court before taking effect and remains in litigation, so it is not currently in force in South Dakota or any state. State law controls — which is why the state-specific rules above are the ones to draft around.
The full non-compete agreement guide
Clause-by-clause guidance, common mistakes, and the complete template text live on the main page: Non-Compete Agreement Template — full guide and download.