Legislation dealing with non-compete clauses dies in committee
By Jackelyn Severin
Legislation dealing with non-compete clauses between employers and their employees died in the House Commerce Committee. House Bill 1004 reduces non-compete clauses from 2 years to 1 year.
In South Dakota if an employee breaks a contract with a non-compete clause they are barred from working in that industry for up to two years. Representative Frank Kloucek is a democrat from Scotland, South Dakota. Kloucek says House Bill 1004 promotes fair and open competition in the workplace. He says non-compete clauses prevent economic development and they prevent workers from moving to companies that offer higher salaries and better benefits. Kloucek says because of this many people have to move out-of-state.
“They’re trying to upgrade their lives, their families and bring that money back home to South Dakota and live here. And we’re saying two years before you can even consider doing that,” says Kloucek.
Opponents of the legislation say non-compete clauses protect business owners.
The House Commerce and Energy committee killed the legislation by a vote of 11 to 2.
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