Prohibit the enforcement of contracts limiting competition on certain matters of conscience.
Impact
If enacted, HB1211 would fundamentally alter the enforcement of non-compete clauses in South Dakota, particularly in scenarios involving vaccination requirements that clash with individual consciences. This could lead to a more lenient business environment for employees seeking alternative employment in similar fields, as they would have the ability to nullify non-compete clauses that are imposed under these circumstances. The proposed changes are designed to safeguard the rights of workers while ensuring that employers cannot enforce restrictive covenants that conflict with an employee's personal convictions.
Summary
House Bill 1211 aims to amend existing employment contract laws in South Dakota, specifically addressing restrictions on competition. The bill proposes that any contract provision preventing an employee from engaging in a similar business as their employer, due to religious or moral conscience associated with requiring a COVID-19 vaccination, can be declared voidable by the employee. This legislation is particularly significant as it seeks to empower employees who might feel coerced into complying with vaccination mandates against their personal beliefs.
Contention
The key points of contention in discussions surrounding HB1211 include the balance between employers' rights to protect their business interests and employees' rights to act according to their conscience. Supporters of the bill argue that employees should not be forced into compliance with vaccinations that violate their beliefs, especially as businesses navigate health and safety regulations amid the pandemic. Conversely, opponents may express concerns that this could lead to potential abuse of the legislation, where employees might exploit the bill to escape lawful employment restrictions, impacting employers' investment in training and workforce management.
Prohibiting the assignment of benefits under certain property and casualty insurance contracts and defining such assignment of benefits as an unfair method of competition and unfair or deceptive act or practice.