§ 1. Governing Statutory & Common Law Authority
The enforceability of non-competition agreements in Idaho is governed by Idaho Code § 44-2701 et seq. (Idaho Competition Act). Idaho has a non-compete statute (Idaho Competition Act) that governs enforceability. Key employees earning above $101,585/year (2026) are subject to enforceable non-competes.
Recent legislative developments: 2024 amendments updated thresholds and clarified scope.
§ 2. Compensation Threshold Requirements
Idaho imposes a statutory compensation threshold for non-compete enforcement. Under current law, non-compete covenants are presumptively void for employees earning below the statutory minimum. Idaho defines 'key employee' as the highest-paid 5% of the employer's workforce. The $101,585 figure is an approximate equivalent; the actual threshold varies by employer. The threshold is $101,585/year — but whether your total compensation qualifies depends on how your state counts bonuses, commissions, and equity.
§ 3. Temporal Limitations on Post-Employment Restrictions
Idaho limits enforceable non-compete duration to 18 months from separation. 18-month statutory maximum. Agreements exceeding this cap may be subject to judicial modification or voided entirely.
§ 4. Judicial Modification (Reformation Doctrine)
Idaho follows the reformation doctrine, granting courts broad authority to rewrite overbroad non-compete terms. This is the most employer-favorable approach — even a poorly drafted agreement may be reshaped into an enforceable restriction.
§ 5. Consideration & Contract Formation
Statute requires the agreement to be part of or supplemental to an employment agreement. Whether this is legally sufficient — especially for agreements presented mid-employment rather than at hiring — is frequently contested.
§ 6. Effect of Involuntary Termination
Statute does not specifically address, but courts consider circumstances. Courts may apply heightened scrutiny when the employer initiated the termination, particularly for termination without cause or mass layoffs.
Practitioner Notes
One of the few states with a specific non-compete statute that includes a salary threshold.