These clauses can hit your paycheck fast: one may try to keep you from taking a new job at all, while the other usually targets who you can contact after you leave. If a contract dispute lands in court, the difference can decide whether a judge issues an injunction, awards damages, or tosses the restriction as too broad.

A non-compete is a contract clause that limits someone from working for a competitor, starting a competing business, or doing similar work for a set time and in a set area. A non-solicitation clause is narrower. It usually does not ban the new job itself. Instead, it restricts contacting the former employer's customers, clients, vendors, or employees to pull business away. Both often show up in fights over trade secrets, confidential information, and customer lists.

Practically, read the exact wording before assuming you are blocked from earning a living. Check the time limit, geographic scope, and whether the clause bans competition broadly or only outreach to existing accounts. In South Dakota, restrictive covenants are viewed skeptically. Under South Dakota Codified Laws § 53-9-8 (2024), contracts restraining someone from a lawful profession are generally void unless a recognized exception applies, such as certain sale-of-business situations. If a dispute is already brewing, save the contract, emails, and customer-contact records early.