The bill amends South Dakota law to prohibit certain restrictive provisions in employment contracts for practitioners and community services providers. Specifically, it establishes that any contract entered into on or after July 1, 2023, that restricts a practitioner from providing professional services after their employment ends is voidable. Additionally, starting July 1, 2026, similar restrictions on community services providers, particularly those serving individuals with developmental disabilities, will also be voidable.

The bill clarifies that these restrictions do not apply to provisions effective upon the sale of a practice or those that limit solicitation of current patients or clients, as long as such solicitation adheres to geographic and temporal limitations. The term "soliciting" is defined to mean any targeted action aimed at convincing a patient or client to transfer their care or business to a new provider. This legislation aims to enhance the mobility of professionals in the community services sector while ensuring that patient care remains a priority.

Statutes affected:
Introduced, 01/28/2026: 53-9-11.2
Enrolled, 02/26/2026: 53-9-11.2