21.545.14 96th Legislative Session 645
HOUSE JUDICIARY ENGROSSED
Introduced by: Representative Deutsch
An Act to prohibit employment contracts restricting competitive health care practices.
Be it enacted by the Legislature of the State of South Dakota:
Section 1. That § 53-9-11 be AMENDED.
53-9-11. Employment contract--Limitation on competition.
as otherwise provided in § 53-9-13, an employee
may agree with an employer at the time of employment or at any time
not to engage directly or indirectly in the same business or
profession as that of
for any period not exceeding two years from the date of termination
of the agreement and not to solicit existing customers of the
employer within a specified county, first-
municipality, or other specified area for any period not exceeding
two years from the date of termination of the agreement, if the
employer continues to carry on a like business therein.
Section 2. That a NEW SECTION be added:
53-9-13. Health care provider--Contract to restrict practice--Prohibition--Exception.
A contract that creates or establishes the terms of employment, a partnership, or any other form of professional relationship, with a health care provider, is void and unenforceable if the contract restricts the right of the healthcare provider to:
(1) Practice or provide services for which the provider is licensed, in any geographic area and for any period of time, after the termination of the employment, partnership, or other form of professional relationship;
(2) Treat, advise, consult with, or establish a provider-patient relationship with any current patient of the employer, or with a patient affiliated with a partnership or other form of professional relationship; or
(3) Solicit or seek to establish a provider-patient relationship with any current patient of the employer, or with a patient affiliated with a partnership or other form of professional relationship.
The prohibition of this section does not apply to a contract in connection with the sale and purchase of a practice.
For purposes of this section, a health care provider means:
(1) A physician licensed in accordance with chapter 36-4;
(2) A physician assistant licensed in accordance with chapter 36-4A;
(3) A certified nurse practitioner licensed in accordance with chapter 36-9A;
(4) A certified nurse midwife licensed in accordance with chapter 36-9A;
(5) A certified registered nurse anesthetist authorized to practice in accordance with § 36-9-3.1;
(6) A registered nurse authorized to practice in accordance with § 36-9-3; and
(7) A licensed practical nurse authorized to practice in accordance with § 36-9-4.
Catchlines are not law. (§ 2-16-13.1) Underscores indicate new language.
indicate deleted language.