South Dakota Non-Solicitation Agreement

A South Dakota non-solicitation agreement is a contract between an employer and an employee that restricts the employee from soliciting the employer's customers or workers within a specified area for up to two years after termination of employment. The contract is intended to protect the employer's business from its competitors.

Updated March 07, 2025

Is It Legally Enforceable in South Dakota?

Yes — as long as it does not extend beyond a term of two years and is limited in geographic scope.^[1]

Non-solicitation agreements can restrict employees or partners from:

Carrying on a similar business within the municipality or area specified.^[2]^[3]
Soliciting existing customers within a specified area.^[4]

What to Include

What should you include in a non-solicitation agreement.

In order to be enforceable in a South Dakota court of law, a non-solicit covenant should specify limitations on the following:

1. Time Restraint

Under South Dakota statute, a non-solicitation agreement can only last for up to two years. The agreement should state when the terms will start being enforced and when they will lapse.

2. Geographical Restraint

The agreement should also specify the area or location where the terms will be enforced. Typically, this restriction is based on the city, county, or region where the employer is located.