Idaho Key Employee Notice
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FAQ
Non-compete agreements are legally binding restrictive contracts between an employer and an employee. These agreements typically prohibit an employee from directly or indirectly competing with the business for a specific length of time after employment has ended.
On July 9, 2021, President Biden signed an Executive Order that states, the Chair of the FTC Federal Trade Commission is encouraged to consider working with the rest of the Commission to exercise the FTC's statutory rulemaking authority under the Federal Trade Commission Act to curtail the unfair use of non-compete
If your Idaho employer fires you for discriminatory reasons, in violation of an employment contract, or in retaliation for exercising your rights, for example, you may have a legal claim against your employer for wrongful termination.
Assuming an employee meets the definition of a key employee, an Idaho court will enforce a non-compete obligation as long as it is reasonable in terms of duration, geographic scope, and scope of restricted activities.
Traditionally, Idaho courts have been remarkably hesitant to modify (i.e., "blue pencil") an unreasonable restrictive covenant to make it enforceable, opting instead to forego enforcing unreasonable covenants. See, e.g., Insurance Ctr., Inc.
General Statute and RegulationTo be enforceable, a non-compete agreement in Idaho must: Protect the employer's legitimate business interests. Only prohibit the employee or independent contractor, after termination, from engaging in employment or a line of business that directly competes with the employer's business.
Generally, when you are employed in Idaho, it is at will. This means an employer can terminate a worker at any time for any reason, as long as that reason does not infringe upon the worker's rights or an employment contract.
Idaho is a "work at will" state. This means there is no set length for an employment relationship and either the employer or the employee may end it at any time, with or without notice; with or without cause.
Idaho is an employment-at-will state, which means that without a written employee contract, employees can be terminated for any reason at any time, provided that the reason is not discriminatory and that the employer is not retaliating against the employee for a rightful action.
Idaho law states that if a non-compete is unreasonable in any respect, a court must modify the agreement to reflect the intent of the parties and render the agreement reasonable and enforceable. (This type of modifying is called blue-penciling.)
