FOR AN ACT ENTITLED, An Act to reduce the term allowed for covenants not to compete.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That § 53-9-11 be amended to read as follows:
53-9-11. An employee may agree with an employer at the time of employment or at any time
during
his the employment not to engage directly or indirectly in the same business or profession
as that of
his the employer for any period not exceeding
two years one year from the date of
termination of the agreement and not to solicit existing customers of the employer within a
specified county, first or second class municipality, or other specified area for any period not
exceeding
two years one year from the date of termination of the agreement, if the employer
continues to carry on a like business therein.
Section 2. That § 53-9-12 be amended to read as follows:
53-9-12. Any independent contractor who is an insurance producer as defined in subdivision
58-1-2(16) and is a captive agent who is not an independent agent and who works exclusively
for a single insurance company or an affiliated group of insurance companies, even if the single
insurance company allows its captive agents to market the products of another insurance
company pursuant to contract, may agree with an insurer at the time of contracting or at any time
during the term of the contract:
(1) Not to engage directly or indirectly in the same business or profession as that of the
insurer for any period not exceeding two years one year from the date of termination
of the independent contractor's agreement with the insurer; and
(2) Not to solicit existing customers of the insurer within a specified county, first or
second class municipality, or other specified area for any period not exceeding
two
years one year from the date of termination of the agreement, if the insurer continues
to carry on a like business within the specified area.