Bill > HB1180

This bill proposes adding a new section to South Dakota law that clarifies the enforceability of non-compete agreements within jointly owned business entities. Specifically, it allows parties involved in the formation or transfer of ownership in a business entity to include provisions in their governing documents or purchase agreements that restrict an owner, after selling their interest, from engaging in a similar business. This restriction can be for a period of up to three years and must be limited to the geographic area where the business operates, provided it's outlined in the agreement. This aims to provide clarity and legal backing for such agreements when ownership changes hands.

Business and Industry, Justice

https://sdlegislature.gov/#/Session/Bill/27031