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PROPOSEDAMENDEDSouth DakotaMEDIUM IMPACT

Clarification on Non-Compete Agreements for Jointly Owned Businesses

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PROPOSED LEGISLATIONThis bill has been introduced but has NOT been signed into law. Legislative proposals may be amended, passed, or fail to advance. This is not current law.

This proposed bill would ensure that non-compete agreements are valid in the context of jointly owned business entities. Before this change, it was unclear whether such agreements were enforceable when multiple parties own a business together. This clarification affects anyone involved in a jointly owned business who has signed or plans to sign a non-compete agreement. The exact effective date is not specified.

Published March 12, 2026
WHAT CHANGED
BEFORE

It was previously unclear whether non-compete agreements were valid in the context of jointly owned business entities.

AFTER

This proposed bill would ensure that non-compete agreements are valid in the context of jointly owned business entities. Before this change, it was unclear whether such agreements were enforceable when multiple parties own a business together. This clarification affects anyone involved in a jointly owned business who has signed or plans to sign a non-compete agreement. The exact effective date is not specified.

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