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At-Will Employment
Idaho is an at-will-employment state. In Idaho, this means that unless an employee is hired under a contract
that includes a specific duration of employment and/or limits the reasons why the employee may be
discharged, the employer may discharge the employee for any reason or no reason as long as it is not an
unlawful reason. Venable v. Internet Auto Rent & Sales, Inc., 329 P.3d 356, 360 (Idaho 2014)
. Idaho has a
narrow exception to at-will-employment where the employer’s motivation for the termination contravenes public
policy.
Id. The Idaho Supreme Court has said that “[t]he public policy exception has been held to protect
employees who refuse to commit unlawful acts, who perform important public obligations[,] or who exercise
certain legal rights or privileges.”
Sorensen v. Comm Tek, Inc., 118 Idaho 664, 668 (1990). The claimed public
policy exception must be generally rooted in “case law or statutory language.” Edmondson v. Shearer Lumber
Prod., 75 P.3d 733, 738 (Idaho 2004). The public policy exception has been applied in instances such as
protecting participating in union activities (Watson v. Idaho Falls Consol. Hosps., Inc., 111 Idaho 44 (1986)),
reports of electrical building code violations (Ray v. Nampa Sch. Dist. No. 131, 120 Idaho 117), compliance
with a court-issued subpoena (Hummer v. Evans, 129 Idaho 274), and serving on a jury (Sorensen v. Comm
Tek, Inc., 118 Idaho 664). However, the public policy exception does not extend to terminations based on the
free speech of an employee who is employed by a private-sector employer. Edmondson, 75 P.3d at 739.
Employers in Idaho must also abide by Idaho Code Title 67 Chapter 59, which mirrors Title VII of the Civil
Rights Act of 1964.
Non-Compete Agreements
Idaho law regulates the use of non-compete agreements in employment contracts.
Idaho Code § 44-
2701 provides that, to be enforceable, a non-compete agreement 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;
• Be reasonable in:
̶ duration;
̶ geographical area; and
̶ the type of employment or line of business restricted;
• Not impose a greater restraint than is reasonably necessary to protect the employer’s legitimate
business interests; and
• Only restrict “key employees” or “key independent contractors,” as defined under
Idaho Code § 44-
2702(1).
There is a rebuttable presumption that an employee or independent contractor who is among the highest-paid
5 percent of the employer’s employees or independent contractors is a “key employee” or a “key independent
contractor.” If the “key employee” or “key independent contractor” is not among the highest compensated
workers, it is the employer’s burden to establish the existence of a “key employee” or “key independent
contractor” under Idaho Code § 44-2702(1)
.
Right-to-Work Laws
Right-to-work in Idaho means any type of union membership requirement as a condition for employment is
prohibited. Idaho Code § 44-2003. Idaho Code § 44-2004
states that no wages may be deducted for union
fees unless the employee provides a signed, written authorization. The statute further states that employer
deductions for political activities are always prohibited, but employees may personally pay contributions for
political activities to labor organizations unless that payment is illegal.
Idaho Code § 44-2004.
Immigration Verification
Employers in Idaho should refer to federal employment eligibility verification rules, but Idaho does not require
private employers to use the E-Verify system.