From Lexology, A. Dean Bennett reports on a new Idaho statute that strengthens the ability of a business to enforce a non-compete agreement against both employees and independent contractors. Dean writes:
Idaho businesses will have an easier time enforcing non-compete agreements that restrict key employees and independent contractors from engaging in post-employment competition, thanks to a bill passed by the Idaho legislature this week. HB 487 provides that if a court finds that a key employee or key independent contractor breaches a non-compete agreement, a rebuttable presumption of irreparable harm is established. The burden of overcoming that presumption shifts to the former employee to show that he or she has no ability to adversely affect the employer’s legitimate business interests. The bill was sent on Tuesday to Governor Otter, who is expected to sign it into law.
Read the full story at Idaho’s Non-Compete Law Set to Enhance Employer Enforcement
Of particular interest is the inclusion of independent contractors in this bill. Independent contractors are supposed to be independent businesses. It makes it harder to demonstrate that an independent contractor is an independent business if the non-compete agreement limits the independent contractor’s other customers. While the new law may aid enforcement of non-compete agreements, it may undermine the classification of workers as independent contractors.
