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Can a home care agency make caregivers sign a non-compete in South Dakota?
Last verified October 17, 2026 · All South Dakota resources
Restricted. South Dakota allows an employee to agree not to compete in the same business, or solicit existing customers, within a specified area for no more than two years. There is no wage threshold. Non-competes are voidable for many licensed health practitioners, including RNs and LPNs, and from 2026-07-01 for workers who provide services to people with developmental disabilities. Unlicensed home care aides serving other clients are not named.
| Status | Restricted |
|---|---|
| Healthcare-specific rule | For contracts from 2023-07-01, restrictions on practitioners (including physicians, PAs, RNs, LPNs, EMTs, therapists, social workers, massage therapists and others listed in SDCL 53-9-11.1) practicing after employment ends are voidable. For contracts from 2026-07-01, the same applies to community services providers that serve people with developmental disabilities. Patient or client non-solicitation within the statutory limits is still allowed. |
| Client non-solicitation | An employee may agree not to solicit the employer's existing customers within a specified county, city or area for up to two years after the agreement ends. For listed practitioners and developmental disability service providers, a targeted patient or client non-solicitation within those limits remains enforceable. |
| Statute | SDCL §§ 53-9-8, 53-9-11, 53-9-11.1, 53-9-11.2 |
| Latest change | 2026-07-01 |
What about a client hiring your caregiver directly?
That is usually handled in the client service agreement, not the caregiver's contract: some agencies charge a placement or conversion fee if a client hires a caregiver directly. Whether that clause is enforceable is a contract question, so have a local employment lawyer review it.
What should you confirm?
Whether the 2026 developmental disability rule reaches individual direct support workers, not only provider organizations, depends on how 'community services provider' is read; confirm with counsel.
General information, not legal advice.
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