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BLOG: New Idaho Legislation on employee non-compete agreements (access required)

by IBR Contributor
Published: March 20,2008
Time posted: 1:00 am

The Idaho Legislature passed a bill this week that affects non-compete agreements between employers and their employees and will become effective if signed by the governor.

Non-compete agreements are intended to prohibit individuals from competing with an employer after employment has ended. However, non-compete agreements are not always enforced by our courts. Historically, Idaho courts have refused to enforce non-compete agreements that go too far in restricting individuals from finding gainful employment with a new employer.

The legislation creates new rules for non-compete agreements. Now, certain types of restrictions that are commonly found in non-compete agreements will be presumptively valid. In addition, in many situations, the law will prohibit non-compete agreements that restrict competition for longer than 18 months.

This new law will have a significant impact on individuals and businesses who enter into non-compete agreements. It will also affect businesses that would like to hire someone who has signed a non-compete agreement with a prior employer.

***

Nicole C. Snyder is an attorney with Holland & Hart and suggested this blog on the legislation so that the business community would be aware of it. We are asking her to write more for a column on the subject in an upcoming regular print edition of the IBR.

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