Guide to Idaho Labor Laws
Idaho is subject to both federal and state labor laws. The federal government enacts a wide array of labor laws affecting all 50 states. In addition to these federal labor laws, Idaho has its own laws. Idaho has taken a primarily hands-off approach to labor laws, preferring to let the federal government set the ground rules.
A few labor laws may be unique to Idaho, but for the most part, Idaho adopts federal labor laws as its own laws. For example, minimum wage and overtime laws in Idaho are the same as in federal law. Other issues are not addressed by Idaho law such as the Family Medical Leave Act (FMLA) . Idaho’s public sector employees are entitled to FMLA leave, but private sector employees are not.
Employees in Idaho are entitled to workers’ compensation if they are injured in a work-related event. There are no specific safety laws, but some federal workplace safety laws apply in Idaho just as in other states. Idaho does not have a state OSHA program. Like most states, Idaho allows employees to seek unemployment benefits after periods of unemployment.
Overall, Idaho has a limited number of special laws that only apply to Idaho companies. Most Idaho employers will need to look to federal law to determine their obligations with respect to employment laws.
Idaho Minimum Wage Law
Just like in most states across the United States, there is the Idaho Minimum Wage Law which governs the worker’s rights in a workplace. The Idaho Fair Wage Act of 2006 increased the state minimum wage to $5.15 per hour, and the Idaho Wage Board increased the rate further on May 14, 2007 to $5.85 per hour (the federal minimum wage was raised in 2007 to $5.85 to match that of Idaho). In 2008, the Idaho wage board again increased the minimum wage to $6.55 per hour and to $7.25 per hour in 2009. All employers of persons under the age of 20, can employ those persons at a minimum wage of $4.25 per hour for the first 90 consecutive calendar days of employment. The employees must be paid the higher minimum wage for all hours worked. There is no allowance for meal credits or lodging credits. Employers are not required to pay overtime to employees who are exempt. Exemptions from both the federal and state minimum wage requirements include: executive work, administrative work, professional work, outside sales work, and computer professional work.
At-Will Employment in Idaho
Idaho, like many other states, follows the employment at will doctrine, which means that unless an employer and an employee have agreed otherwise through contract negotiations, the employee can be terminated at any time without cause (or reason) and the employer is free to terminate the employee for good reason, no reason, or even an unfair reason, so long as the employer’s decision does not violate the law. Idaho is an "employment at will" State. In Idaho, it is presumed a contract for employment may be terminated at any time, by either party, with or without cause. At-will employment means that Idaho may terminate the relationship at any time, for any reason (except those reasons prohibited by law), or for no reason. In Idaho, unless an employee has entered into a contract with the employer or is covered under a collective bargaining agreement, an employee has no legal recourse for wrongful termination due to employment at will. An employment at will relationship may be implied if the employee has not signed an employment contract or is not covered by a collective bargaining agreement. Employment at will may also be expressly set forth in an employee handbook.
Exceptions to employment at will at common law:
- The implied contract exception – An employer’s policy may imply that an employee has job security and cannot be terminated except for specified reasons. See, e.g., Ehinger v. Clarion Corp. of Cal., 93 Idaho 851, 853, 476 P.2d 503, 505 (1970);
- The implied covenant of good faith and fair dealing exception – This exception provides for an action at tort when "the employer’s conduct constitutes a fraudulent scheme or device to prevent the employee from recovering on the employee’s claims for damages." Bala v. Schreiber, 128 Idaho 837, 870 P.2d 821 (1994);
- The exception for illegal acts – An employee should not be terminated in violation of the law.
- The public policy exception – Idaho recognizes a limited public policy exception to the employment-at-will doctrine. See, e.g., Perry v. Nalder 129 Idaho 111, 113-14, 922 P.2d 396, 398-99 (1996) (determining that "a cause of action for wrongful termination pursuant to the tort of outrage does not recognize a new public policy exception").
However, neither the Idaho Supreme Court nor the Idaho legislature has adopted a public policy exception to the employment-at-will doctrine. Instead, the courts have limitedly recognized this exception as being applicable only in the wrongful termination in violation of a specific, well-established public policy exception.
Idaho Overtime Pay Laws
In Idaho, employers are required to pay employees for overtime work according to the number of hours worked. Idaho has only one state specific law, that is similar to the federal fair labor standards act though not as expansive. Idaho Code § 44-1502 applies to "any employment in which eight or more persons are employed by the same employer at any time in a calendar week." In Idaho like most states, time and one-half the regular rate is paid for all time actually worked in excess of forty (40) hours in the workweek to individuals not exempt from overtime pay requirements. 29 CFR 780.301 and Idaho Code § 44-1502(1). The workweek is defined under the Idaho law as "a recurring period of 168 consecutive hours, or seven consecutive 24 hour days as designated by the employer." Idaho Code § 44-1502(6).
Where is the exemption? The basic exemption from the above requirements is any employee who is not covered but exempt by the federal fair labor standards act. Idaho Code § 44-1502(3). Idaho follows the same exemptions as the federally regulated guidelines. A few of the latter exemptions regularly used are Executive, administrative, outside salesmen, computer professionals, and certain professional, administrative and highly compensated positions. Under Idaho law, employees may also be required to be paid time and one half for work over 40 hours per week if agreed upon by the employer and employee. Idaho Code § 44-1502(5). Further, the overtime section does not apply to salespersons, parts persons, service advisers, or mechanics who are within the provisions of the Motor Carriers Act, those employed by the U.S. government, those engaged in seasonal or recreational establishments, organized camps, or educational institutions. Idaho Code § 44-1502(4).
How does this law differ from Federal Law? Idaho Code § 44-1502 is not as broad as the federal FLSA. In Idaho the following do not have to be counted in the overtime work hour rate calculation: • Vacation, illness, holidays for salaried employees, periods when no work is performed because of the employer plant shutdown or for other reasons; • Idle time due to remedial or preventive work, repairs or maintenance of machinery or equipment; • Suspension or layoff for compliance with collective bargaining agreements; • Time spent by an employee in preliminary or postliminary activities that are isolated from the workday; and • Other time, not specifically mentioned that the employee is paid for but not productive, such as coffee breaks, time used to clean up and restroom use, that is excluded from hours worked under the federal regulations. Ibid. (citing 29 CFR parts 785.16, 785.19, 785.22, 785.23, 785.24, 785.13); Idaho Code § 44-1502(7).
Employees who are covered under the Idaho law may bring civil action against the employer for damages, including compensatory damages and equitable relief for violations of the act. Idaho Code § 44-1502(8).
Idaho Child Labor Law
A minor may work in Idaho subject to the following restrictions:
Age 14 or 15. May not work more than six consecutive days without a day off in between. May not work more than 40 hours in a week. May not work more than eight hours in any one day of employment. May work between 5:00 a.m. and 9:00 p.m., except in the summer from June 1 through August 31, when minor employees under fifteen (15) years of age may work until 9:15 p.m.
Age 16 or 17. May not work more than six consecutive days without a day off in between. May work in excess of 40 hours in a week. May work in excess of eight hours in any one day of employment. May work as early as 5:00 a.m. and as late as 10:15 p.m., except in the summer from June 1 through August 31, when employees under eighteen (18) years of age may work until 10:45 p.m.
May not employ any minor who has not yet attained the age of sixteen (16) in occupations or places as specified in Idaho Code, Section 44-1504(1)-(7).
May not employ any minor in occupations involving the following conditions:
May not employ any minor in occupations involving the following conditions:
(1) Minors under sixteen (16) years of age shall not be employed, permitted, or suffered to engage in, or in connection with, any commercial driving activity. For the purposes of this section, the term "commercial driving activity" means all of the following:
(a) The operation of a motor vehicle on public roadways;
(b) The operation of an assistant driver in a commercial motor vehicle, as defined in 49 CFR 390.5, except for a driver who is sixteen (16) or seventeen (17) years of age who is required to hold a valid license, while in the immediate presence of a qualified driver, as defined in the federal motor carrier safety regulations, with a valid commercial driver’s license;
(c) The transportation of persons or property for compensation;
(d) The operation of a motor vehicle engaged in transporting explosives, flammable liquids, or hazardous materials, the transportation of which is required to be placarded in accordance with the federal hazardous materials regulations.
(2) Minors sixteen (16) years of age and older may not be employed, permitted, or suffered to drive a covered tractor on public roadways unless the driver is authorized by the department of motor vehicles to drive a covered tractor. A covered tractor includes, but is not limited to, a tractor while hauling an implement of husbandry, livestock, or poultry, or carrying a farm product as defined in section 28-2-105, Idaho Code.
(3) For the purpose of this section, the term "compensation" does not include remuneration paid to a minor employed by a member of the minor’s family while engaged in agricultural employment, as defined in section 44-1502(1), Idaho Code.
Safety and Health Laws in Idaho
Idaho businesses are subject to both federal and state safety and health standards, although Idaho has a two-year "grace period" before adoption of new federal Occupational Safety & Health Administration (OSHA) standards. A number of Idaho initiatives aimed at improving workplace safety and health complement OSHA regulations and are designed to guide Idaho businesses in minimizing the risk of workplace injuries or unsafe conditions.
The Idaho Division of Occupational Safety and Health (IDOL) is responsible for administration and enforcement of occupational safety and health laws in Idaho . IDOL conducts inspections of workplaces in Idaho to ensure compliance with OSHA standards as well as Idaho’s own occupational safety and health law. IDOL provides consultation services to employers both before and after an inspection as part of its efforts to help Idaho businesses maintain safe and healthy workplaces.
IDOL also runs several injury-prevention programs, including the Voluntary Protection Program (VPP), which recognizes Idaho employers and employees who have developed and maintained effective safety and health management systems. VPP-eligible organizations are designated at three levels: VPP Star, VPP Merit, and VPP Demonstration. By the end of 2017, 28 companies in Idaho have received a VPP designation.
Protection Against Discrimination and Harassment
While most developers, employers, and HR professionals in Idaho know that they are subject to federal anti-discrimination laws such as the American with Disabilities Act (ADA), Title VII of the Civil Rights Act of 1964, the Fair Labor Standards Act (FLSA) and the National Labor Relations Act (NLRA), they may not know about additional protections against workplace discrimination and harassment under Idaho state law.
Like many other states, Idaho has a statutory scheme that prohibits employment discrimination and harassment based on: 1) race, color, religion, national origin, sex, age, and physical or mental disability by employers of 5 or more employees; and 2) race, color, religion, national origin, sex, age, and physical or mental disability by all public accommodations. These protections apply to, among other areas, hiring and firing, pay, job assignments, promotions, layoff, training, fringe benefits, use of employer facilities, and other terms and conditions of employment. Although Idaho law does not use the term "sexual orientation," it protects against discrimination on the basis of sex. This means that Idaho courts would likely interpret "sex" discrimination to include discrimination based on sexual orientation. In addition to these anti-discrimination laws, Idaho law also prohibits an employer from retaliating against an employee for complaining of discrimination or discrimination-related retaliation.
Generally, an employee cannot file a lawsuit based on state anti-discrimination laws unless he or she first files a complaint with the Idaho Human Rights Commission (IHRC) and receives a right to sue letter from the IHRC.
Enforcement of Idaho anti-discrimination laws is handled by the Idaho Commission for Human Rights (ICHR). The ICHR has narrow duties and insufficient resources to provide adequate response times. Employers in Idaho frequently receive complaints immediately after a lawsuit is filed without a right to sue letter. Like the EEOC, the ICHR actively investigates employer practices to look for "patterns of discrimination." The ICHR uses the same standards as the EEOC when pursuing its investigations, including using statistical evidence. When brought to a hearing, these cases are heard before the Human Rights Court, which has exclusive jurisdiction over civil actions alleging violations of Idaho’s antidiscrimination laws.
Idaho Leave Laws
Idaho law requires employers to allow employees to take some time off work under various circumstances, such as when the employee or a family member is sick or injured. Some of this leave is paid leave. Some is unpaid. Some leave is taken intermittently while other leave stretches over a longer period.
An employee is entitled to take up to 12 weeks of unpaid leave each year for childbirth and adoption, an employee’s serious health-restraint, care of a child or parent with a serious health-restraint, or taking care of certain family military affairs. Idaho’s leave laws are not as generous as the federal Family Medical Leave Act. FMLA mandates qualified employers to provide eligible employees 12 weeks of unpaid leave in a year for childbirth and adoption, an employee’s serious health-restraint, care of a child or parent with a serious health-restraint, or certain family military affairs. Idaho law requires leave only for pregnancy; FMLA leave is wider in scope and applies to a greater number of employees.
Idaho law requires employers to give workers time off to vote and time off to serve jury duty and respond to certain subpoenas. The types of leave are defined and regulated by statute.
Idaho Termination and Unemployment Benefits
Idaho is an "at-will" employment state. This means that unless an employment agreement specifies otherwise, employment can be terminated at any time by the employer or the employee for any reason, or for no reason at all. However, there are several exceptions.
Employers must be careful not to terminate any employee in violation of Federal anti-discrimination laws. "Adverse actions" which seem to discriminate against (or retaliate against) a protected class may lead to liability against the company. Protected classes include women, minorities, persons over age 40, and persons with disabilities. Federal protection against "retaliation" applies to a participant in a lawsuit, but it also protects other employees who have filed EEOC complaints or otherwise participated in the investigation of a complaint of discrimination. The Company cannot deliberately terminate an employee because he or she engaged in protected activity. However, if the participating employee fails to adequately perform essential functions of the job, his or her protected activity will not protect him or her from discipline or termination. Unemployment benefits will not be awarded if the claimant is discharged for misconduct. Misconduct generally means that the employee intentionally did work badly or intentionally failed to do work properly. If the misconduct is serious enough to result in discharge, the claimant will probably not be eligible for benefits. For example, offenses of dishonesty such as theft, falsification of records, willful destruction of property, etc. , also disqualify a claimant for unemployment benefits.
Employees have 10 days from the date of termination to file for unemployment benefits. There are four steps to the unemployment compensation process: filing a claim; determination of monetary eligibility; determination of benefit eligibility and duration; and appeal. An in-person interview is required before monetary eligibility and benefit awards can be given. Once eligibility is established, an initial monetary determination is made. The amount of benefits is not considered in the decision of eligibility for compensation. However, if an award of compensation results from an initial determination, the Department will review the determination and reconsider it sua sponte (on its own initiative). The reconsideration process includes inviting the parties to submit evidence to support their respective positions. The term "monetary eligibility" refers only to the amount of payment the individual has earned.
If the claimant is not satisfied with the referee’s decision after the hearing, he or she can further appeal the decision to the Industrial Commission, which is the next step in the process. The claimant can represent himself or herself or have the appeal handled by an attorney. If a hearing is held and the Commission issues a decision, the next step in the process is an appeal to the Idaho Supreme Court. These proceedings are subject to strict timelines.
While Idaho is an "at-will" employment state, Idaho law requires employers to provide written notice to employees at the time of termination, advising the employee of the reason for the termination. The notice must be signed by the employee or by a witness, and the employer must retain notice for three years. However, this notice requirement has never been the subject of change in the statute by the Idaho Legislature. The statute simply states that written notice is "desirable."