Understanding Non-Compete Agreements in South Dakota Non-compete agreements, also known as restrictive covenants, are a common feature of employment contracts across the United States. These agreements aim to prevent former employees from working for a competitor or starting a competing business for a specified period within a defined geographical area after leaving their current employer. While some states have taken a highly skeptical or even outright prohibitory stance on non-competes, South Dakota generally takes a more balanced, employer-friendly approach, allowing enforcement so long as the agreement is "reasonable." For both employees contemplating signing such an agreement and employers seeking to protect their legitimate business interests, understanding the nuances of South Dakota law is crucial. SD Codified Laws (SDCL) § 53-9-11 is the foundational statute governing these agreements in the state. It essentially allows contracts that restrict a perso...