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ID H0486
Bill
Status
4/3/2025
Primary Sponsor
Todd Achilles
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AI Summary
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Covenants not to compete in employment and independent contractor agreements are declared void and unenforceable in Idaho, repealing the existing Chapter 27, Title 44 framework
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Exceptions allow enforceable non-competes during the sale of a business, upon dissolution of a partnership/LLC/corporation, or for employees earning $250,000 or more annually
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Nondisclosure agreements protecting trade secrets and non-solicitation agreements restricting customer solicitation are explicitly excluded from the definition of "covenant not to compete"
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Employers cannot require Idaho-based employees to adjudicate disputes outside Idaho or waive Idaho law protections; violating provisions are voidable by the employee
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Prevailing employees or independent contractors may recover attorney's fees, and the law takes effect July 1, 2025 under an emergency declaration
Legislative Description
Repeals and adds to existing law to provide that covenants not to compete shall be void and unenforceable except in certain situations.
COVENANTS NOT TO COMPETE
Last Action
Reported Printed; Filed in the Office of the Chief Clerk
4/3/2025