Noncompete bill passes Senate but may stall in House

Sharon Fisher//March 9, 2018//

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A bill that would repeal a controversial noncompete provision in Idaho code has passed the Senate, but it is unclear whether it will be heard in the House.

photo of senator jim guthrie — Sen. Jim Guthrie

The bill, S1287, was sponsored by Sen. Jim Guthrie, R-Inkom, vice chair of the Senate Commerce and Human Resources Committee. It had been amended to remove just one of the two sections of text added in 2016, which brought Idaho national attention for its laws restricting when people could leave a job to join a competitor. It passed the Senate on a 29-5 margin on March 5 and was transmitted to the House and referred to the House Business committee.

“I’m not sure if it will get a hearing or not,” Guthrie said. “I’m still having productive conversations with [business committee] Chairman [Vito] Barbieri and remain hopeful.” The Legislature is scheduled to adjourn before the end of the month.

Guthrie brought the bill because of his concern about the national attention Idaho received after the 2016 bill passed, he said. He wasn’t sure whether the law had actually been used against any employees, but indicated it could have had a chilling effect on employees. “It cast Idaho in a bad light as being unfair,” he said. “It put a perception that we weren’t business-friendly and conducive to entrepreneurs and people being able to advance their careers. Perception becomes reality, and then you have a problem.”