An Act to prohibit certain restrictive employment contracts.
Be it enacted by the Legislature of the State of South Dakota:
Section 1. That 53-9-11 be AMENDED:
53-9-11. Except as otherwise provided in 53-9-11.1 and section 4 of this Act, an employee may agree with an employer at the time of employment or at any time during employment not to engage directly or indirectly in the same business or profession as that of the employer for any period not exceeding two years from the date of termination of the agreement and not to solicit existing customers of the employer within a specified county, first- or second-class municipality, or other specified area for any period not exceeding two years from the date of termination of the agreement, if the employer continues to carry on a like business therein.
Section 2. That 53-9-11.1 be AMENDED:
53-9-11.1. A contract that creates or establishes the terms of employment, a partnership, or any other form of professional relationship, with a health care provider, as defined in section 3 of this Act, may not restrict the right of the health care provider to:
(1) Practice or provide services for which the provider is licensed, in any geographic area and for any period of time, after the termination of the employment, partnership, or other form of professional relationship;
(2) Treat, advise, consult with, or establish a provider-patient relationship with any current patient of the employer, or with a patient affiliated with a partnership or other form of professional relationship; or
(3) Solicit or seek to establish a provider-patient relationship with any current patient of the employer, or with a patient affiliated with a partnership or other form of professional relationship.
The prohibition of this section does not apply to a contract in connection with the sale and purchase of a practice.
For
purposes of this section, a health care provider means:
(1) A
physician licensed in accordance with chapter 36-4;
(2) A
physician assistant licensed in accordance with chapter 36-4A;
(3) A
certified nurse practitioner licensed in accordance with chapter
36-9A;
(4) A
certified nurse midwife licensed in accordance with chapter 36-9A;
(5) A
certified registered nurse anesthetist authorized to practice in
accordance with 36-9-3.1;
(6) A
registered nurse authorized to practice in accordance with 36-9-3;
and
(7) A
licensed practical nurse authorized to practice in accordance with
36-9-4.
Section 3. That chapter 53-9 be amended with a NEW SECTION:
For purposes of 53-9-11.1, a health care provider means:
(1) A physician licensed in accordance with chapter 36-4;
(2) A physician assistant licensed in accordance with chapter 36-4A;
(3) A respiratory care practitioner licensed in accordance with chapter 36-4C;
(4) A certified nurse practitioner licensed in accordance with chapter 36-9A;
(5) A certified nurse midwife licensed in accordance with chapter 36-9A;
(6) A certified registered nurse anesthetist authorized to practice in accordance with 36-9-3.1;
(7) A registered nurse authorized to practice in accordance with 36-9-3;
(8) A licensed practical nurse authorized to practice in accordance with 36-9-4;
(9) A physical therapist licensed in accordance with chapter 36-10;
(10) A psychologist licensed in accordance with chapter 36-27A;
(11) An athletic trainer licensed in accordance with chapter 36-29;
(12) An occupational therapist licensed in accordance with chapter 36-31;
(13) A professional counselor licensed in accordance with chapter 36-32;
(14) A professional counselor--mental health licensed in accordance with chapter 36-32;
(15) A marriage and family therapist licensed in accordance with chapter 36-33;
(16) An addiction and prevention professional licensed or certified in accordance with chapter 36-34; and
(17) A speech language pathologist licensed in accordance with chapter 36-37.
Section 4. That chapter 53-9 be amended with a NEW SECTION:
A contract that creates or establishes the terms of employment, a partnership, or any other form of professional relationship, with a social worker licensed in accordance with chapter 36-26, may not restrict the right of the social worker to:
(1) Practice or provide services for which the social worker is licensed, in any geographic area and for any period of time, after the termination of the employment, partnership, or other form of professional relationship; or
(2) Treat, advise, consult with, or establish a relationship with any current client of the employer, or solicit or seek to establish a relationship with a client affiliated with a partnership or other form of professional relationship.
The prohibition of this section does not apply to a contract in connection with the sale and purchase of a practice.