South DakotaSome post-job service limits in provider contracts may be voided
The law describes when contracts may be voidable if they restrict practitioners' or disability service providers' work after a job or professional relationship ends.
What it does
Certain contract terms may be voidable if they restrict a provider from serving people with developmental disabilities after leaving a job or contractual relationship. Sale-of-practice terms and limited restrictions on targeted client solicitation are excepted.
Certain contract terms may be voidable if they restrict a practitioner from providing professional services after leaving a job or professional relationship. Sale-of-practice terms and limited restrictions on targeted client solicitation are excepted.
Argument forProviders may have more freedom to keep serving people with developmental disabilities after leaving a job or contractual relationship.
Argument againstFormer employers may still restrict targeted efforts to move current clients, which could make it harder for providers to continue serving those clients.
More detail
Certain contract terms that restrict a community services provider's work may be voidable. It covers community services providers who seek employment or provide services to people with developmental disabilities. The rule does not apply to terms that take effect when a practice or part of one is sold. It also does not apply to restrictions on targeted efforts to persuade former clients to transfer their care or business, if those restrictions meet the stated geographic and time limits. The rule applies to contracts entered into on or after July 1, 2026.
Certain contract terms that restrict a practitioner's professional work may be voidable. It covers practitioners and services within their applicable scope of practice. The rule does not apply to terms that take effect when a practice or part of one is sold. It also does not apply to restrictions on targeted efforts to persuade former patients or clients to transfer their care or business, if those restrictions meet the stated geographic and time limits. The rule applies to contracts entered into on or after July 1, 2023.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Mar 9Signed by the Governor Larry Rhoden on 2026-03-09 S.J. 488Became Law
- Mar 3Delivered to the Governor on 2026-03-03 S.J. 441To Governor
- Mar 2Signed by the Speaker H.J. 478Major
- Feb 26Signed by the President S.J. 416Major
- Feb 25House of Representatives Do Pass , Passed, YEAS 64, NAYS 0 H.J. 446Passed House
- Feb 24Certified uncontested, placed on consent , Passed,
- Vote recorded Do Pass. Result: pass.Lower
- Feb 24Health and Human Services Do Pass , Passed, YEAS 12, NAYS 0Minor
- Feb 24Scheduled for hearing
- Feb 9Referred to House Health and Human Services H.J. 262Minor
- Feb 6First Reading House H.J. 247
- Feb 5Senate Do Pass , Passed, YEAS 32, NAYS 2 S.J. 200Passed Senate
- Vote recorded Do Pass. Result: pass.Upper
- Feb 4Health and Human Services Do Pass , Passed, YEAS 7, NAYS 0 S.J. 10Minor
- Vote recorded Do Pass. Result: pass.Upper
- Feb 4Scheduled for hearing
- Jan 29First read in Senate and referred to Senate Health and Human Services S.J. 139Introduced
Disability Rights