This bill proposes the repeal of Chapter 27, Title 44 of the Idaho Code, which previously governed agreements and covenants protecting legitimate business interests. In its place, a new Chapter 27 is introduced, which defines terms related to covenants not to compete and establishes that such covenants are generally void and unenforceable, with specific exceptions. These exceptions include covenants agreed upon during the sale of a business, in anticipation of business dissolution, or for employees earning $250,000 or more annually.

Additionally, the bill outlines provisions regarding choice of law and venue, ensuring that employees residing and working in Idaho cannot be compelled to adjudicate claims outside the state or be deprived of Idaho's legal protections. It also allows for the award of attorney's fees to employees or independent contractors who successfully enforce their rights under this chapter. The bill declares an emergency, making it effective from July 1, 2025.