Idaho Non-compete Agreement Template

Some people’s work involves confidential info tied to business processes, company data, customers, and so on. Suppose a company in Idaho wants to protect this information. In that case, it can offer some of its employees—or all employees, depending on the scope of work—to sign a specific legal document: a Non-Compete Agreement (NCA sample).

Usually, two parties sign such an agreement: an employee and an entity representative (most commonly, the chief manager). The responsible entity representative is also referred to as the “Company,” while a worker, who can be not only an employee but also an independent contractor or a partner, is called the “Recipient.”

So, why should a company create the non-compete agreement template and ask the employees to sign that? The answer is simple: an NCA gives a company a chance to protect its business-related information. There are many ways to spill potentially confidential information. You may even do it by accident when communicating with competitors, clients, or other employees who have no access to particular data.

But if the worker commits to a legally binding obligation and then breaches the agreement, the company may start a prosecution (by firing or fining them). Sometimes, the confidentiality level is so high that the worker who has revealed a secret may be detained or even imprisoned.

Idaho Non-Compete Agreement Form

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Typically, non-compete agreements expire upon the worker’s contract termination date, but companies may extend the limitations for a specific term after the contract expires. Usually, it only concerns employees of particular economic spheres and segments.

Whether you are signing a non-compete agreement in Idaho or any other American state, the form should include the following details.

Information About the Parties

Each NCA must contain both parties’ printed names and signatures. Additional info on the agreement is optional.

Agreement Conditions

The involved company management has to think about all the conditions to set. They should describe which info is considered confidential and add all the needed points in the agreement.

Validity Period and Signing Date

You have to include a date on a Non-Compete Agreement. Also, there should be a separate section where the company defines the agreement’s termination date.

In the United States, rules related to non-compete agreements vary from state to state. In some states, you will not find any norms or laws regulating such documents at all. However, some jobs and positions require an NCA, while others do not. For instance, in some states, you cannot ask physicians or broadcasters to sign a Non-Compete Agreement.

Keep reading to find out what NCA norms apply to Idaho.

Idaho NCA Laws and Restrictions

If you need to sign an NCA or represent a company that prepares it, make sure you learn more about the laws regulating non-compete agreements in Idaho. For more details, you may refer to Title 44, Chapter 27 (Sections from 44-2701 to 44-2704) of the Idaho Statutes.

As stated in Section 44-2701, each NCA has to uphold the employer’s legal interests tied to business matters in Idaho. The document is only applicable to “key independent contractors” and “key employees.”

The agreement can restrict the worker’s employment in companies that are considered competitors after the contract termination (but not for longer than 18 months). Also, every NCA should be reasonable in:

  • Geographical area limitations
  • Duration (limitation period)
  • Work field

Section 44-2704 of the Idaho Statutes defines “key independent contractors” and “key employees” as people who comprise the 5% of the staff with the highest salaries.

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Published: Jun 21, 2022
Jennifer M. Settles
Jennifer M. Settles
Author & Attorney
With over 25 years of experience as a business and transactional attorney, Jennifer has mastered the craft of closing highly successful deals for her clients. Through her wide-ranging expertise in commercial contracts, real estate transactions, M&A and corporate law, Jennifer secures results that are second-to-none.