HB 1180·SD·house
ensure the validity of non-compete agreements in the context of jointly owned business entities.
Signed into LawFiled Jan 28, 2026
Sponsor: Kolbeck (Steve)
Latest Action
Signed by the Governor on 2026-03-12
Mar 12, 2026
Summary
The bill lets parties include non‑compete provisions in a business’s governing documents or in contracts when an ownership interest is bought, sold, or transferred. It bars the former owner from working in a similar business within the same area for up to three years after the transfer. This aims to protect the business’s interests after ownership changes.
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