Can I require employees to sign non-compete agreements in Idaho? What are the requirements?

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Non-compete agreements for employees in Idaho

In Idaho, non-compete agreements are enforceable if they are reasonable in duration, geographical area, type of employment or line of business, and do not impose a greater restraint than is reasonably necessary to protect the employer’s legitimate business interests [44-2701][44-2704].

Requirements for non-compete agreements

To be enforceable, non-compete agreements in Idaho must meet the following requirements [44-2701][44-2704]:

• The agreement must be in writing.
• The agreement must protect the employer’s legitimate business interests.
• The agreement must prohibit the key employee or key independent contractor from engaging in employment or a line of business that is in direct competition with the employer’s business after termination of employment.
• The agreement must be reasonable in duration, geographical area, and type of employment or line of business.
• The agreement must not impose a greater restraint than is reasonably necessary to protect the employer’s legitimate business interests.

Professional Service Agreements

Professional service corporations in Idaho are required to enter into service agreements only with licensees duly licensed by the state of Idaho [IDST 41-3415(1)]. Each service agreement must require the participant licensees to furnish to subscribers of the service corporation the professional services which are, under the subscriber’s contract, to be furnished by participant licensees [IDST 41-3415(2)].

Computer Information Agreements

In an action based on a computer information agreement that contains a choice of laws provision that would result in application of the uniform computer information transactions act to such computer information agreement, such choice of laws provision is voidable by the party against whom enforcement is sought, and the agreement will be governed by the laws of the state of Idaho if either party is a resident of this state or has its principal place of business located in this state [IDST 29-116(1)].

Service Agreements and Subscriber’s Contracts

Service agreements and subscriber’s contracts entered into or issued by a service corporation on a service basis shall provide for health care services of a substantial and broad character to be rendered to subscribers on a service basis by participant licensees or participant hospitals, as the case may be and, as to participant licensees, within the scope of health care services which may otherwise lawfully be provided by the respective categories of participant licensees under the laws of Idaho [IDST 41-3418(1)].

Fairness in Contracting Act

The Fairness in Contracting Act in Idaho prohibits contractors or subcontractors from directly or indirectly receiving a wage subsidy, bid supplement or rebate on behalf of its employees, or providing the same to its employees, the source of which is wages, dues or assessments collected by or on behalf of any labor organization(s), whether or not labeled as dues or assessments [IDST 44-2012(2)].

Conclusion

In Idaho, non-compete agreements for employees are enforceable if they meet the requirements mentioned above. It is important to ensure that the agreement is reasonable and necessary to protect the employer’s legitimate business interests. Professional service corporations are required to enter into service agreements only with licensees duly licensed by the state of Idaho. Computer information agreements may be governed by the laws of the state of Idaho if either party is a resident of this state or has its principal place of business located in this state. Service agreements and subscriber’s contracts must provide for health care services of a substantial and broad character to be rendered to subscribers on a service basis. The Fairness in Contracting Act prohibits contractors or subcontractors from directly or indirectly receiving a wage subsidy, bid supplement or rebate on behalf of its employees, or providing the same to its employees, the source of which is wages, dues or assessments collected by or on behalf of any labor organization(s), whether or not labeled as dues or assessments.

Jurisdiction

Idaho

• Labor