Idaho non-compete law

Pay figure in the law

None found in the statutes we read

Separate rules for professions

None found in the statutes we read

Statutes and official texts quoted

Idaho Code § 44-2701; Idaho Code § 44-2702(1); Idaho Code § 44-2704(5); Idaho Code § 44-2704(1)-(2); Idaho Code § 44-2703; Idaho Code § 44-2702(2); Idaho Code § 44-2704(2); Idaho Code § 44-2704(3); Idaho Code § 44-2704(4)

Is a non-compete allowed?

Idaho permits a key employee or key independent contractor to agree to a non-compete that is reasonable in duration, area, and type of work and no greater than reasonably necessary.

“A key employee or key independent contractor may enter into a written agreement or covenant that protects the employer’s legitimate business interests and prohibits 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,”
Idaho Code § 44-2701

Who is covered

'Key employees' are those who gained a high level of inside knowledge, influence, or public persona and so can harm the employer's legitimate business interests.

“have gained a high level of inside knowledge, influence, credibility, notoriety, fame, reputation or public persona as a representative or spokesperson of the employer and, as a result, have the ability to harm or threaten an employer’s legitimate business interests.”
Idaho Code § 44-2702(1)

An employee among the highest-paid 5% of the employer's workers is rebuttably presumed to be a key employee.

“It shall be a rebuttable presumption that an employee or independent contractor who is among the highest paid five percent (5%) of the employer’s employees or independent contractors is a "key employee" or a "key independent contractor."”
Idaho Code § 44-2704(5)

What the employer must protect

Legitimate business interests include goodwill, technologies, intellectual property, business plans and methods, customers and customer lists, vendors, financial and marketing information, and trade secrets.

“"Legitimate business interests" shall include, but not be limited to, an employer's goodwill, technologies, intellectual property, business plans, business processes and methods of operation, customers, customer lists, customer contacts and referral sources, vendors and vendor contacts, financial and marketing information, and trade secrets as that term is defined by chapter 8, title 48, Idaho Code.”
Idaho Code § 44-2702(2)

Limits on length and area

A post-employment restriction may not exceed 18 months unless consideration beyond employment is given; 18 months or less is rebuttably presumed reasonable.

“Under no circumstances shall a provision of such agreement or covenant, as set forth herein, establish a postemployment restriction of direct competition that exceeds a period of eighteen (18) months from the time of the key employee’s or key independent contractor’s termination unless consideration, in addition to employment or continued employment, is given to a key employee or key independent contractor.”
Idaho Code § 44-2704(1)-(2)

A covenant lasting eighteen months or less after employment is presumed reasonable as to duration; the presumption can be rebutted.

“It shall be a rebuttable presumption that an agreement or covenant with a postemployment term of eighteen (18) months or less is reasonable as to duration.”
Idaho Code § 44-2704(2)

A covenant limited to the areas where the key employee or contractor provided services or had a significant presence or influence is presumed reasonable as to area; the presumption can be rebutted.

“It shall be a rebuttable presumption that an agreement or covenant is reasonable as to geographic area if it is restricted to the geographic areas in which the key employee or key independent contractor provided services or had a significant presence or influence.”
Idaho Code § 44-2704(3)

A covenant limited to the type of work or line of business the key employee or contractor did for the employer is presumed reasonable as to scope; the presumption can be rebutted.

“It shall be a rebuttable presumption that an agreement or covenant is reasonable as to type of employment or line of business if it is limited to the type of employment or line of business conducted by the key employee or key independent contractor, as defined in section 44-2702, Idaho Code, while working for the employer.”
Idaho Code § 44-2704(4)

If it is challenged

If a covenant is unreasonable, the court must limit or modify it and enforce it as modified.

“To the extent any such agreement or covenant is found to be unreasonable in any respect, a court shall limit or modify the agreement or covenant as it shall determine necessary to reflect the intent of the parties and render it reasonable in light of the circumstances in which it was made and specifically enforce the agreement or covenant as limited or modified.”
Idaho Code § 44-2703

Federal rules

On September 5, 2025, the FTC moved to dismiss its appeals in Ryan, LLC v. FTC and Properties of the Villages v. FTC and to accede to vacatur of the Non-Compete Clause Rule. FTC press release, Sept. 5, 2025

The FTC's final rule removes the Non-Compete Rule (16 CFR part 910) from the Code of Federal Regulations. 91 Fed. Reg. (Feb. 12, 2026), FR Doc. 2026-02866

Before you sign, or before you assume you are bound

1. Find every restrictive clause: non-compete, non-solicitation, no-hire and confidentiality are separate promises with separate rules.
2. Note how long each lasts and what area or customers it covers.
3. Check which state’s law the agreement picks and where disputes must be heard.
4. Compare your pay and your job with the Idaho rules above.

Check your state with the non-compete checker.

Common questions

Are non-competes enforceable in Idaho?

Idaho permits a key employee or key independent contractor to agree to a non-compete that is reasonable in duration, area, and type of work and no greater than reasonably necessary. (Idaho Code § 44-2701).