Idaho Labor Laws: 2025 Guide

Idaho is well known for its growing economy and business-friendly environment, which makes it a great place to expand your business. However, having a full idea of Idaho labor laws is equally important for business success.

Labor laws in Idaho cover everything extensively to protect employee rights and even independent contractors to some extent. 

You must be well-read in everything, from hiring and payroll to employee rights, State of Idaho benefits, and termination. As an employer or a business owner looking to establish your business in this state, ensure you stay informed to avoid issues and penalties.

This blog guides you through the nitty gritty of Idaho employment laws. You will learn all about the tools to align your practices with state regulations and help create a supportive workplace that benefits employees and your goals.

Overview of Idaho Labor Laws

Idaho's low-cost, business-friendly environment supports fast organizational growth. However, to succeed in Idaho’s marketplace, it’s crucial to understand Idaho employee rights and ensure compliance with its labor laws.

Broad and globalized HR policies can be massively helpful in handling remote teams. But, it’s important to adjust them to fit Idaho’s specific labor regulations. 

This ensures compliance and helps create a positive workplace where employees feel valued.

Combining global perspectives with local practices can build employee trust and set your business up for success in Idaho’s innovation-driven market. All you need to do is stay compliant with Idaho’s straightforward labor laws, which ensure a thriving business while fostering a positive workplace culture.

Key Idaho State Employment Laws

With businesses aiming for globalization on a large scale, it is always wise to stay a step ahead. Make sure you have a well-rounded idea of Idaho labor laws. 

This ensures your employees receive fair treatment, safety, and benefits. 

Standard working hours

According to Idaho labor laws, a full-time work week consists of 40 hours total (8 hours per day). Employees exceeding this work time must be paid overtime to adhere to the Idaho overtime pay laws.

Minimum wage and overtime requirements

The federal Idaho minimum wage is 7.25 USD per hour, with exceptions for certain groups like youth employees, who can earn 4.25 USD per hour during their first 90 days​. 

According to Idaho overtime laws, non-exempt employees are entitled to 1.5 times their hourly wage for work exceeding 40 hours per week as fair compensation for extra effort​. 

However, as per the Idaho overtime exemption laws, employees in the executive or administrative sectors on a payroll who are paid a minimum of 455 USD weekly will not be granted overtime payment. 

Failing to comply with wage and hour regulations surrounding the minimum wage in Idaho

can lead to fines of up to 750 USD. Keeping accurate records is essential to avoid these issues​.

Employee Classification and Contracts

Like most countries, Idaho labor laws also demand correct employee classification for compliance. These are the following employee classifications:

As per the State of Idaho employment laws, an employment contract has to legally have the following information to avoid misclassification of employees and independent contract workers. They must clearly define:

• Job responsibilities.
• Compensation structure (hourly, salaried, or per-project for contractors).
• Terms for termination.
• Non-compete or confidentiality agreements, where applicable.

Payroll and Tax Obligations in Idaho 

The Idaho labor law will need to be compliant with federal and state-specific tax obligations as well. These are the payroll and tax laws you are obligated to adhere to if you want to set up a business in Idaho:

Make sure you adhere to these obligations to avoid hefty fines. Another great way to manage smooth international payroll operations is by hiring an Employer of Record (EOR).   ​

Employer contribution summary table

As per the Idaho labor laws, you have to pay taxes on time and report for compliance properly.

Benefits and Insurance Requirements

The laws surrounding state employment in Idaho enforce these mandatory benefits and insurance requirements. As an employer, you have to make sure that your employees receive the following: 

• Workers’ Compensation Insurance: Employers must carry workers' compensation insurance to cover any job-related injury. This insurance covers all medical expenses and lost wages for the injured employee in concern.‍
• Unemployment Insurance (SUTA): Employers must contribute to Idaho’s unemployment program. These rates are entirely based on the state’s unemployment and Idaho employee wages. ‍
• Optional benefits: Here’s a list of some of the optional benefits that are not mandated as Idaho employment benefits, but employers are most welcome to offer them to their employees:
• ‍Health Insurance: Under the Affordable Care Act, companies with more than 50 employees are required to provide health insurance. The coverage must meet specific standards mandated by federal law.
• ‍Paid Sick Leave: There isn’t any statewide strict Idaho sick leave law that mandates paid sick leave in Idaho. Employers can voluntarily offer this benefit as per their will.‍
• Family and Medical Leave (FMLA): According to the Family Medical Leave Act, Idaho (FMLA, Idaho), employers with over 50 employees have to provide a maximum of 12 weeks of unpaid leave to eligible employees. This leave covers medical and family care situations.‍
• Disability Insurance: The Idaho labor laws do not mandate employers to provide disability insurance, but many offer it. This insurance typically covers employees with short-term or long-term disability.

Workers’ compensation and liability

The Idaho labor laws make it mandatory for employers to provide compensation to employees in case the need arises. It offers the following:

• Workers' compensation: This is mandated by the Idaho Workers’ Compensation Law and all employers in Idaho must adhere to it. It applies to both full-time and part-time employees. It covers medical aid, wage replacement, and even disability benefits.‍
• Employer liability: As per the (I.C. § 72-439(1)), an employer is not liable to compensate any employee unless they have caught an occupational disease or disability that was the result of the employer's employment. However, to avoid fines, you must follow safety protocols.

Workplace Breaks and Rest Periods

Unlike many states in the U.S., there aren’t any strict Idaho work break laws that mandate meal or rest breaks for adult workers. Employers are free to set their policies for work breaks. 

However, make sure that you communicate everything before onboarding an employee.

Anti-Discrimination and Equal Opportunity Laws

The Idaho State Labor Board prohibits discrimination under the Workforce Innovation and Opportunity Act (WIOA) and other federal and state laws. Discrimination is strictly prohibited based on gender, age, race, religion, color, disability, nationality, or political beliefs.

For WIOA Title I beneficiaries, it is illegal to discriminate based on citizenship status or participation in a WIOA-funded program or activity. These protections are under Section 188 of WIOA, 29 CFR Part 38 in Idaho labor laws.

Leave Policies in Idaho

The Idaho labor laws need you to adhere to the following leave benefits:

Required Leave

• Family and Medical Leave (FMLA, Idaho): Up to 12 weeks of unpaid leave for qualifying medical or family needs. There is no Idaho-paid family leave. This only applies to employers with 50+ employees. Idaho maternity leave laws are included here too.

• Military Leave: The Idaho labor laws permit up to 12 weeks for active duty-related requirements or 26 weeks for caregiving related to service member injuries.

• Jury Duty Leave: Employees must be allowed time off for jury service, though pay is not required.

Optional Leave

• Sick Leave: No requirement for private employers; state employees may accrue leave.

• Bereavement Leave: Not mandated by the Idaho labor laws but, you can offer it voluntarily to your employees.

• Voting Leave: No legal requirement for voting time off.

• ‍Vacation and Holiday Leave: This is not required by Idaho law, but employers commonly observe federal holidays.

Employee Termination and Severance Policies

First, let’s answer a common question, “Is Idaho an at-will employment state?” 

Yes. Employment is usually “at-will” here, which means either party has the right to terminate the employment relationship willingly at any given time. 

However, employers must adhere to several legal grounds for Idaho labor laws termination to avoid unnecessary lawsuits. 

Terminated employees may also qualify for certain unemployment benefits and protections under the Idaho labor laws, especially if they are fired from their jobs for no fault of their own. The Idaho Department of Labor assesses eligibility based on the details about their work history and termination provided by the applicants.

Severance pay practices

The Idaho final paycheck law mandates employees to provide terminated employees their final paycheck by the next scheduled payday or in ten business days. This must include all of the following: 

• Earned wages and any accrued
• Unused vacation pay if mentioned in the employment contract or policy.

The severance pay must include 55% of the employee’s salary-based apportionment fund. For companies with over 20 employees, terminated workers insured through Health Insurance Continuation (COBRA) are eligible to continue their health insurance. This program allows employees to maintain coverage for up to 18 months at their own expense.

Following the rules for final pay check for terminated employees in Idaho is also important.

Workplace Safety and Health Obligations

Idaho's workplace safety and health regulations are overseen by OSHA (Occupational Safety and Health Administration). Employers are required to maintain a safe and hazard-free work environment in compliance with OSHA standards:

• Hazard identification: Idaho labor laws make it compulsory to conduct regular workplace inspections. This helps identify and remove potential risks.

• Safety training: Provide employees with extensive training specific to their roles, especially if they work in high-risk jobs. This includes emergency response, awareness of workplace risks, and equipment handling.

• Reporting requirements: As per Idaho labor laws, you must report serious injuries, illnesses, or fatalities to OSHA within stipulated timeframes.

• Safety equipment: Make sure personal protective equipment (PPE) like helmets, goggles, or gloves is easily available, as required by OSHA.

• Recordkeeping: Maintain records of workplace injuries and illnesses on OSHA's Form 300 and display OSHA Form 300A annually for employees to review.

• ‍Compliance inspections: Allow OSHA inspections without delay and promptly address violations to avoid penalties.

How to Simplify Idaho Employment Compliance

Partner with an Employer of Record (EOR) like Skuad to make employing individuals in Idaho easier including Idaho new hire reporting or onboarding. 

It is, hands down, the easiest way to set up an Idaho HR without the added risks of trying to navigate the complex Idaho labor laws on your own.  

Let Skuad do the backend work like employment, payroll management, and compliance while you can handle things on the business front. With Skuad, globalizing your business will be so much easier. 

Benefits of using Skuad for Idaho employment

Setting up shop in Idaho is made simpler with Skuad's reliable solutions. They help:

• Ensure compliance: Skuad helps your business stay aligned with Idaho labor laws, taxes, and reporting obligations, ensuring you're always in compliance with per Idaho State Department of Labor.

• Efficient payroll: Skuad's team guarantees accurate payroll processing, covering tax deductions and timely filings.

• Manage State of Idaho employee benefits: Easily handle benefits like paid leave, healthcare, and retirement plans while complying with Idaho's labor regulations.

• Reduce costs: Skuad eliminates the need for an in-house HR and compliance team, saving time and money.

• Leverage global expertise: Skuad’s professionals ensure the smooth hiring and management of both local and international employees.

• Focus on growth: Let Skuad handle the complexities of employment management so you can focus on scaling and growing your business.

Hire, Pay, and Manage Employees Anywhere with Skuad

With Skuad as your EOR partner, you can forget the ordeal of navigating Idaho labor laws alone. Skuad's team of experts always comes updated with the latest labor laws, not just in Idaho but in any country you want to expand. 

Hire talent, accurately handle payroll, and manage compliance with local Idaho state employment laws effortlessly with Skuad. With their top-notch EOR service, you can focus on the business side instead. 

Try Skuad. Book a demo today!

FAQs

1. What are the new employment laws in Idaho?

According to recent updates regarding Idaho labor laws, non-exempt employees have to be paid 1.5 times their pay for working overtime (40 hours) in a week. The minimum wage has been updated to 7.25 USD per hour. Leave benefits have also been updated, stating that employers are obligated to grant unpaid leave to employees summoned for jury duty. 

2. Does Idaho require PTO payout upon termination?

Yes, employers are required to pay out accrued vacation time upon termination. This is only applicable if it is mentioned exclusively in the employment contract.

3. How many hours can a salaried employee work in Idaho?

The maximum number of working hours per the Idaho labor laws for Salaried employees is 40 hours weekly. If they exceed 40 hours, they are entitled to overtime pay.  

4. How much notice does an employer have to give for a schedule change in Idaho?

Idaho labor laws don’t mandate notice. However, employers are required to communicate changes as soon as possible.

5. Is mandatory overtime legal in Idaho?

Yes, mandatory overtime is legal, provided the employee is compensated for it.