Allowed if reasonable

Non-compete law in Idaho

Idaho's noncompete statute (Idaho Code ch. 27, tit. 44) lets a 'key employee' or 'key independent contractor' agree in writing not to compete directly after termination if the covenant is reasonable in duration, area and line of business and no broader than needed to protect legitimate business interests. A post-employment restriction cannot exceed 18 months unless extra consideration beyond employment or continued employment is given; 18 months or less is presumed reasonable, and a worker among the employer's highest-paid 5% is presumed to be key. Courts must reform an unreasonable covenant and enforce it as reformed.

Last verified · confidence medium. Clauseworthy is not a law firm and does not give legal advice.

Employee non-competes
Only within the statute's conditions
Pay floor
A test with no single figure, adjusted not applicable (relative test)
How pay is measured
No dollar threshold. Rebuttable presumption that a worker among the highest-paid 5% of the employer's employees or independent contractors is a 'key employee' / 'key independent contractor'; the worker rebuts by showing no ability to adversely affect the employer's legitimate business interests (§ 44-2704(5)).
Duration
Post-employment restriction of direct competition may not exceed 18 months from termination unless consideration beyond employment or continued employment is given; 18 months or less is rebuttably presumed reasonable in duration (§ 44-2704(1)-(2)).
Consideration
Consideration in addition to employment or continued employment is required only for a restriction longer than 18 months (§ 44-2704(1)).

Exceptions and special rules

  • Chapter limits covenants of key employees and key independent contractors only; sale-of-business covenants are not mentioned.
  • Nothing in the chapter limits a party's ability to otherwise protect trade secrets or other proprietary or confidential information (§ 44-2704(1)).

Non-solicitation clauses

The chapter addresses only restrictions on 'direct competition'; non-solicitation covenants are not mentioned (not covered by a rebuttable presumption).

Remedies

If an agreement is unreasonable in any respect, the court must limit or modify it to reflect the parties' intent and render it reasonable, and specifically enforce it as modified (§ 44-2703). Rebuttable presumptions on geography (areas where the worker served or had significant presence or influence) and line of business (the type conducted by the worker) in § 44-2704(3)-(4).

Primary sources

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What the statute says for these facts

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The person who would sign

Several statutes treat contractors differently.

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