Upcoming Legislative Changes Impacting Employers in Idaho in 2025

At Idaho Employment Lawyers, we know that staying informed about Idaho employment law news is critical for businesses. In our most recent episode of Ground Rules: Employment Law Over Your Coffee Break, we spoke with Idaho Legislative District 17 Representative and soon-to-be law school graduate, Megan Egbert, about the latest legal developments that could impact employers.

Although we are likely only at about the midpoint in the legislative session, what has happened already provides insight into those areas the legislature is likely to act. Here’s what you need to know; 

DEI Initiatives Under Scrutiny

Diversity, Equity, and Inclusion (DEI) programs continue to be a focus in the Idaho Legislature. Lawmakers are reviewing past and present DEI spending in public institutions, and there is growing concern over whether similar scrutiny could extend to private businesses. Employers should monitor both state and federal developments to ensure compliance with any new regulations.

Increased Oversight of Unemployment & Workers’ Compensation

There is a growing legislative push to prevent fraud in unemployment benefits and workers’ compensation claims. New proposals could give state agencies more authority to verify income and claim validity through tax records and other means. Employers should prepare for potential stricter reporting requirements and ensure proper documentation in cases involving unemployment or workplace injuries.

Moral & Religious Objections in Healthcare

A new bill could expand the rights of healthcare workers who refuse to participate in medical procedures based on moral or religious beliefs. While this proposed legislation primarily affects healthcare providers, it raises broader questions about employer policies on accommodations and job duty requirements. Employers should ensure their job descriptions clearly define essential job functions to navigate potential objections effectively.

The Future of Non-Compete Agreements

Non-compete agreements continue to be a hot topic at both state and federal levels. While Idaho has traditionally allowed non-competes, the Federal Trade Commission (FTC) has proposed a nationwide ban, signaling potential shifts in enforcement. The Idaho Legislature has not taken up this issue in the current session. Employers should start reviewing their agreements and consider whether transitioning to non-solicitation and confidentiality agreements might be a better long-term strategy.

Whistleblower Protections: No Changes—Yet

The Idaho Protection of Public Employees Act (our state’s whistleblower statute) remains unchanged for now. However, the legislative session is still in progress, so employers should stay informed on any last-minute amendments that could impact public sector workplaces.

Stay Informed & Proactive

With legislative changes on the horizon, employers should remain vigilant and adaptable while paying attention to employment law news in Idaho. Reviewing policies, updating handbooks and agreements, and staying on top of evolving changes will be crucial in the months ahead.

If you have questions about how these updates impact your workplace, contact Idaho Employment Lawyers. Our team is here to help you navigate these changes and keep your business compliant.