S.D. Codified Laws § 53-9-11.2

Current through the 2024 Legislative Session

Section 53-9-11.2 - Employment contract-Practitioner competition limitation upon termination-Voidability-Applicability

Notwithstanding § 53-9-11, a provision of a contract, entered into on or after July 1, 2023, is voidable if it restricts a practitioner, as defined in § 53-9-11.1, from practicing or otherwise providing professional services in accordance with the applicable scope of practice, after the conclusion of the practitioner's employment or after the dissolution of a partnership or other form of professional relationship.

This section does not apply to any contractual provision that:

(1) Is effective upon the sale of a practice or interest in a practice; or

(2) Restricts a practitioner from soliciting current patients or clients of the former employer, partnership, or other professional relationship, provided the solicitation complies with the geographic and temporal limitations as referenced in § 53-9-11.

The term, soliciting, as used in this section, means a targeted affirmative act, directed toward any patient or client of the practitioner's former employer, partnership, or other professional relationship, for the purpose of convincing the patient or client to transfer the patient or client's care or business to the practitioner or to the practitioner's new employer, partner, or professional relationship.

SDCL 53-9-11.2

SL 2023, ch 160, §3.

Added by S.L. 2023, ch. 160,s. 3, eff. 7/1/2023.