This bill repeals Chapter 27 of Title 44 of the Idaho Code, which previously addressed agreements and covenants protecting legitimate business interests, and introduces a new Chapter 27 that establishes clear regulations regarding covenants not to compete. Under the new provisions, covenants not to compete are generally deemed void and unenforceable, with specific exceptions outlined for situations such as the sale of a business, the dissolution of a business, or for high-earning employees making $250,000 or more annually. The bill also defines key terms related to employment and independent contracting, ensuring clarity in the application of these regulations.

Additionally, the bill includes provisions that protect employees residing and working in Idaho from being required to adjudicate disputes outside the state or to waive protections under Idaho law. Any contract provisions that violate these stipulations are rendered voidable by the employee. Furthermore, the bill allows for the awarding of attorney's fees to employees or independent contractors who successfully enforce their rights under this chapter. The act is set to take effect on July 1, 2025, due to an emergency declaration.