Overview of Hiring Laws in Idaho

Idaho employment laws largely align with federal standards while maintaining a straightforward regulatory environment combined with state-level anti-discrimination protections. The state’s Idaho Department of Labor, Idaho Human Rights Commission (IHRC), and the Equal Employment Opportunity Commission (EEOC) oversee most employment standards, including wage and hour rules, anti-discrimination protections, new hire reporting, and workplace safety.

One of the most notable aspects of Idaho employment law is pending legislation (H0485) that would dramatically transform the state’s minimum wage landscape. If enacted, the bill would increase Idaho’s minimum wage from $7.25 per hour to $12.00 effective July 1, 2025, with further increases to $15.00 in 2026 and $17.00 in 2027, followed by annual CPI adjustments. This would represent Idaho’s first independent minimum wage increase in 16 years (since 2009).

These rules reflect Idaho’s traditional alignment with federal standards combined with significant pending changes that could reshape the state’s wage landscape.

Idaho Hiring Laws

Anti-Discrimination and Equal Opportunity Laws

The Idaho Human Rights Act (IHRA), codified in Idaho Code Title 67, Chapter 59, prohibits discrimination in employment based on race, color, religion, sex (including pregnancy, childbirth, and related medical conditions), national origin, disability, and age (40 and older). Additionally, the IHRA explicitly prohibits harassment and retaliation.

• State-level coverage for smaller employers: The IHRA applies to employers with 5 or more employees—lower than federal Title VII’s 15-employee threshold. This means Idaho provides state-level anti-discrimination protections to employees in businesses with 5-14 employees who would not be covered by federal law. Why the 5-employee threshold? Idaho determined that discrimination can occur in smaller workplaces and that workers deserve state protection regardless of employer size.
• Important distinction—No explicit sexual orientation/gender identity protections in state law: Idaho state law does not explicitly include sexual orientation or gender identity as protected classes. However, some local ordinances (such as Boise City Code Chapter 6-02) provide these protections within their jurisdictions. Additionally, the federal Supreme Court decision in Bostock v. Clayton County (June 2020) extended Title VII sex-based discrimination protections to include sexual orientation and gender identity for employers with 15+ employees.
• Retaliation protections: The IHRA explicitly prohibits retaliation against employees for filing discrimination complaints, assisting with complaints, participating in investigations, or opposing discriminatory practices.
• Equal pay: Idaho’s Wage Act applies to all employers regardless of size, requiring equal pay for comparable work based on skill, effort, and responsibility, regardless of gender.

Employers are required to maintain written policies addressing non-discrimination and equal employment opportunity. Employers must provide reasonable accommodations for individuals with disabilities unless it causes significant difficulty or expense.

Pay Equity and Minimum Wage

• Current minimum wage: Idaho’s minimum wage is $7.25 per hour, matching the federal minimum wage. The state has maintained this rate since July 24, 2009—16 years with no increase. However, this landscape is poised for dramatic change.
• Pending legislation—H0485: Idaho Legislature Bill 0485, introduced in the 2025 session, proposes a dramatic transformation of Idaho’s minimum wage structure. If enacted with an effective date of July 1, 2025:
  • Minimum wage increases to $12.00 per hour (July 1, 2025); $15.00 per hour (July 1, 2026); $17.00 per hour (July 1, 2027), with annual CPI-U adjustments thereafter
  • Tipped minimum wage increases to $6.00 per hour (2025); $7.00 per hour (2026); $8.00 per hour (2027), with CPI-U adjustments thereafter
  • The bill eliminates the separate training wage for workers under 20 during their first 90 days of employment
  • Beginning July 1, 2028, minimum wage will be automatically adjusted annually based on changes in the Consumer Price Index for All Urban Consumers (CPI-U), with adjustments rounded to the nearest five cents
• Tipped employees (current law): The minimum cash wage for tipped employees is $3.35 per hour. Employers may take a tip credit of up to $3.90 per hour if tips, combined with the base wage, reach at least $7.25 per hour. If H0485 passes, this structure would change significantly with the tipped minimum wage increasing to $6.00 in 2025.
• Youth/Training wages (current law):
  • Training wage (workers under 20): $4.25 per hour for their first 90 consecutive calendar days of employment. If H0485 passes, this separate rate would be eliminated as of July 1, 2025.
  • Student minimum wage: Idaho does not have a separate student minimum wage; all workers receive the standard minimum wage.
  • Workers with disabilities: Employers may pay subminimum wages to workers with disabilities upon obtaining certification from the U.S. Department of Labor.
• Overtime: Idaho follows federal Fair Labor Standards Act standards—overtime is due at 1.5 times the regular rate for hours worked over 40 per week.
• Exempt employee salary threshold: As of January 1, 2025, the federal salary threshold for exempt employees is $58,656 per year (adjusted from $43,888), effective every three years thereafter.

Idaho follows federal equal pay requirements. Employers should retain records demonstrating the basis for any wage differences between employees performing substantially equal work.

Background Checks and Criminal History Rules

Idaho does not have a statewide ban-the-box law for private employers. Employers may inquire about an applicant’s criminal history at any point during the hiring process. However, expunged or sealed records require special handling—if an applicant’s criminal record has been expunged or sealed, the applicant may truthfully state that the conviction did not occur.

When using third-party background screening services, the Fair Credit Reporting Act (FCRA) applies. Employers must obtain written consent before running a background check and provide adverse action notices if denying employment.

I-9 and Employment Eligibility Requirements

Like all U.S. states, Idaho employers are required to verify the identity and employment eligibility of new hires using Form I-9. The employee must complete Section 1 by their first day of employment. Employers must complete Section 2 within three business days of hire. Forms must be retained for three years after hire or one year after termination, whichever is later.

E-Verify: Unlike some states, Idaho does not require private employers to use the federal E-Verify system, though employers may voluntarily use it for employment eligibility verification.

State-Specific Hiring Rules

Idaho enforces additional hiring-related requirements that employers should be aware of:

Penalties for Non-Compliance in Idaho

Idaho takes non-compliance seriously. Employers who fail to follow state and federal hiring laws can face significant financial and legal consequences.

• Wage and Hour Violations: Employers who violate minimum wage, overtime, and wage payment laws are subject to civil penalties enforced by the U.S. Department of Labor and state authorities. Penalties for wage and hour violations can range up to $750, though if wages owed are paid before the Department of Labor files a state lien, the maximum penalty cannot exceed $500.
• Discrimination Violations: If the Idaho Human Rights Commission or EEOC finds that an employer violated anti-discrimination laws, it may order remedies including reinstatement with back pay, compensatory damages, front pay, and attorney fees. Idaho law does not cap compensatory damages for discrimination claims.
• Filing timeline: Employees must file discrimination complaints with the Idaho Human Rights Commission within 12 months of the alleged discriminatory act to preserve state-level claims. However, federal EEOC claims must be filed within 300 days. The agencies have a work-sharing agreement, allowing cases to be cross-filed.
• Employee Lawsuits: Employees can file complaints with the Idaho Human Rights Commission or the EEOC, or pursue civil lawsuits for discrimination or retaliation. Following dismissal by the IHRC, employees have 90 days to file a lawsuit in civil court.
• FCRA Violations: Improper background check procedures can result in fines of $1,000+ per applicant, with significantly higher exposure in class-action lawsuits.
• Form I-9 Violations: USCIS fines can range from $281 to $2,789 per form for paperwork errors, and $678 to $27,894 per violation for knowingly hiring unauthorized workers (as of 2025).

Notice and Documentation HR Professionals Need to Know

HR professionals must maintain the following key documents to stay compliant:

• Completed Form I-9s for All New Hires- Federal law requires all employers to verify an employee’s identity and eligibility to work in the U.S. via Form I-9. These forms must be completed within three business days of hire and stored securely for the required retention period: either three years after the hire date or one year after termination, whichever is later. For additional guidance on I-9 compliance, consult the USCIS I-9 Handbook.
• New Hire Reporting to Idaho Department of Labor- All new hires and rehires must be reported to the Idaho Department of Labor New Hire Reporting Portal within 20 days of their hire date. Reports should include the employee’s name, address, Social Security number, date of birth, date of hire, and the employer’s FEIN. Online reporting through the secure Employer Portal is the preferred method. Call 208-332-8941 for assistance or email newhire@labor.idaho.gov (do not email new hire data as it’s not secure).
• Background Check Documentation- Employers must retain written consent forms, background check reports, and copies of any adverse action notices provided to applicants. These records should be kept for at least one year and demonstrate compliance with FCRA requirements.
• Written Policies on Non-Discrimination and Equal Opportunity- Employers are required to maintain written policies outlining their commitment to equal employment opportunity and non-discrimination. These policies should be included in employee handbooks and posted in visible areas of the workplace to ensure accessibility for all staff, as required by the Idaho Human Rights Act.
• Child Labor Work Permits- Employers must keep files of all work permits for children under 16 employed. Permits must be obtained from the school in which the minor is enrolled.
• Retention of Job Applications and Interview Notes- Idaho employers are advised to retain job applications, interview notes, and hiring records for a minimum of two years. This documentation can be critical if hiring decisions are later questioned or challenged in discrimination complaints.
• Wage and Hour Records- Employers must maintain accurate records of hours worked, wages paid, and deductions for each employee. Records should be kept for at least three years and made available during audits or investigations by the Idaho Department of Labor.
• Posters and Workplace Notices- Certain notices must be displayed prominently in the workplace, including those covering minimum wage, discrimination, workers’ compensation, unemployment insurance, occupational safety, and employee rights. HR should routinely verify that all state and federal posters are up-to-date and clearly visible to employees.