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Bill

Bill

SB 153

prohibit certain restrictions in employment contracts for community services providers.

2026 Regular Session Introduced by Tamara Grove and 2 co-sponsors

SB 153 bars non-compete and non-solicitation clauses in employment contracts for South Dakota community services workers to increase job mobility.

Scheduled for hearing
#community-basedproviders #contracts #laborandemployment
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WeVote Research Nonpartisan
Bill Summary · SB 153

Legislative bill overview

SB 153 prohibits certain restrictive covenants in employment contracts for community services providers in South Dakota. The bill targets non-compete clauses, non-solicitation agreements, and similar restrictions that limit worker mobility in the community services sector. This legislation aims to increase worker flexibility and reduce barriers to employment in healthcare and social services.

Why is this important

Community services providers (home health aides, personal care assistants, counselors) often earn modest wages while facing employment restrictions that prevent them from working for competing agencies. These restrictions can trap workers in lower-paying positions and limit access to better opportunities. The bill addresses a workforce retention challenge in an essential sector facing chronic staffing shortages.

Potential points of contention

  • Business perspective: Employers argue restrictive covenants protect investments in worker training and client relationships; removing them may increase turnover costs and client care disruptions
  • Definition scope: The bill's specific definitions of "community services providers" and which restrictions are prohibited may be too broad (affecting legitimate intellectual property protections) or too narrow (leaving gaps)
  • Unintended consequences: Removing restrictions could enable aggressive poaching of trained workers by competitors, potentially harming smaller agencies serving vulnerable populations

Compiled from official sources — confirm details with the bill’s official record.

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