Bill > H0486

This bill fundamentally changes Idaho's laws regarding covenants not to compete (non-compete agreements), which are contractual provisions that restrict an employee from working for a competitor or in a similar business after leaving their current job. The bill establishes that most non-compete agreements are void and unenforceable, with three specific exceptions: (1) when a business is sold and the seller agrees not to compete in the same geographic area for a reasonable time, (2) when business partners agree not to compete upon dissolution of their business, and (3) for employees earning $250,000 or more annually. The bill also includes important protections for employees, such as preventing employers from requiring employees who primarily work in Idaho to adjudicate disputes outside the state or use non-Idaho law, and allows employees to void such provisions. Additionally, the bill defines key terms like "covenant not to compete" and "independent contractor" and provides that courts may award attorney's fees to employees who successfully challenge improper non-compete agreements. The legislation will take effect on July 1, 2025, and aims to provide greater workforce mobility and protect employees from overly restrictive employment agreements while still allowing some limited protections for businesses in specific circumstances.

https://legislature.idaho.gov/sessioninfo/2025/legislation/H0486/