Non-compete agreements are designed to protect a company’s intellectual property, client relationships, and competitive edge.
The Federal Trade Commission’s (FTC) recent attempts to regulate them have created some confusion and pushback, so in this blog, we answer frequently asked questions like: Are non-competes enforceable in Idaho? How enforceable is a non-compete today? What are best practices for protecting your business in 2025?
Are Non-Competes Enforceable in Idaho? Validity and the FTC’s proposed Non-Compete Ban
Despite a shifting landscape around non-competes at the federal level, non-competes are still enforceable in Idaho, but only if they meet certain requirements.
In July 2024, the FTC’s ban on non-compete agreements, originally set to go into effect in September 2024, was blocked by a federal court. The U.S. District Court for the Northern District of Texas issued a nationwide injunction, ruling that the FTC likely overstepped its authority and relied on flawed data to justify the rule. This injunction halted the ban across the country, including Idaho.
Then, in March 2025, the FTC moved to stay its own appeal of the case for 120 days, citing a change in presidential administrations and internal reconsideration of the rule’s future. FTC Commissioner Andrew Ferguson publicly questioned whether defending the rule remained in the public’s best interest, signaling that the agency may ultimately drop or revise the proposal.
So, where does that leave employers?
As of May 2025, the FTC’s proposed rule is on hold and potentially on the chopping block. That means Idaho’s existing state laws still govern the enforceability of non-competes, and businesses can still use them to protect legitimate interests.
Idaho Non-Compete Law: Understanding the Basics
Idaho law allows non-compete agreements, but only if they are reasonable in scope and duration and protect a legitimate business interest of the company. These interests may include:
- Trade secrets and intellectual property
- Customer or client relationships
- Business strategies or confidential financial information
- Specialized training or knowledge gained through employment
The law is designed to strike a balance between protecting businesses without unreasonably preventing employees from earning a living. Non-compete agreements are scrutinized by courts, which are hesitant to enforce provisions deemed excessively broad in scope or duration, or those that primarily serve to suppress legitimate competition rather than protect a legitimate business interest. Such overly restrictive agreements are generally considered contrary to public policy, as they can hinder an individual’s ability to earn a living and limit consumer choice by reducing market competition. Courts typically require non-compete clauses to be narrowly tailored to protect specific, legitimate business interests, such as trade secrets, confidential information, or established customer relationships, and must be reasonable in terms of geographic scope and the duration of the restriction. If a non-compete agreement is found to be unreasonable, courts may choose not to enforce it or may modify it to make it enforceable.
Key Requirements for a Valid Non-Compete in Idaho
To be enforceable under Idaho law, a non-compete agreement must:
- Protect a legitimate business interest
- Be reasonable in geographic scope, typically limited to areas where the business operates or the employee worked.
- Be reasonable in duration, generally no more than 18 months unless exceptional circumstances justify more.
Not impose greater restraints than necessary to protect the employer’s interest.
How to Draft an Enforceable Non-Compete Agreement in Idaho
If you’re considering using non-competes, here’s how to strengthen them and increase the likelihood of enforceability:
1. Clearly Define the Scope
1. Clearly Define the Scope
The more specific your agreement, the better. Limit the geographical area to where your business operates and restrict the time period to what’s reasonably needed to protect your interests. While Idaho permits non-competes up to 18 months, durations of 6 to 12 months are more commonly upheld.
2. Tailor the Agreement to Specific Employees
Avoid one-size-fits-all agreements. Courts are more likely to enforce non-competes for employees who had access to proprietary information, such as executives, managers, or sales professionals, than for entry-level or administrative staff. Tailoring the agreement based on the employee’s role strengthens your position if the agreement is challenged.
3. Communicate the Agreement Clearly
Non-compete agreements are scrutinized by courts, which are hesitant to enforce provisions deemed excessively broad in scope or duration, or those that primarily serve to suppress legitimate competition rather than protect a legitimate business interest. Such overly restrictive agreements are generally considered contrary to public policy, as they can hinder an individual’s ability to earn a living and limit consumer choice by reducing market competition. Courts typically require non-compete clauses to be narrowly tailored to protect specific, legitimate business interests, such as trade secrets, confidential information, or established customer relationships, and must be reasonable in terms of geographic scope and the duration of the restriction. If a non-compete agreement is found to be unreasonable, courts may choose not to enforce it or may modify it to make it enforceable.
How to Enforce a Non-Compete Agreement in Idaho
Even with a well-drafted agreement, enforcing a non-compete can be complex. Here’s a step-by-step guide to ensuring your non-compete holds up:
1. Document Violations
Gather evidence that the former employee is violating the agreement by working for a competitor, soliciting your clients, or using confidential information. Documentation strengthens your claim and may encourage a swift resolution.
2. Send a Cease-and-Desist Letter
A formal letter from your attorney may help resolve the issue before it escalates. You may also choose to notify the employee’s new employer if appropriate.
3. Seek Injunctive Relief
If informal steps don’t work, you may file a lawsuit and seek a court order (injunction) to prevent further violation of the agreement. Courts are more likely to act quickly if the competitive activity is ongoing and likely to harm your business.
Final Thought: Consult a Business Attorney
Non-compete agreements remain a powerful tool for Idaho businesses, but they must be drafted and enforced with care. Uncertainty can create confusion and stall business; consulting with a business attorney can help keep your organization moving forward.
Whether you have questions about your current contracts or are ready to craft agreements that will stand up in court, our knowledgeable attorneys can help you protect your interests and ensure you’re not overstepping legal boundaries.