Idaho Termination Laws

October 26th 2024

Navigating the complexities of employment termination is crucial for both employers and employees. Idaho termination laws are designed to protect employees and ensure employers comply with federal and state laws. This article provides essential insights into the legal considerations and protections surrounding termination in Idaho.

This Guide Covers

Legal Considerations for Termination in Idaho
At-Will Employment in Idaho
Lawful Termination in Idaho
Legal Protections During Termination in Idaho
Terminated Employee Benefits in Idaho
Layoffs in Idaho
Resignations in Idaho
Legal Cases Related to Wrongful Termination in Idaho

Legal Considerations for Termination in Idaho

When terminating an employee in Idaho, employers should be mindful of several legal considerations to ensure compliance and minimize the risk of wrongful termination claims. Considerations for termination include:

  • Discrimination Laws: Employers must avoid terminating employees based on race, color, religion, sex, national origin, age, or disability. Both federal and state laws prohibit termination based on discrimination.
  • Retaliation Protections: Employers cannot retaliate against employees for engaging in protected activities, such as reporting illegal conduct, participating in investigations, or exercising their rights under employment laws.
  • Employment Contracts: If there is an employment contract or collective bargaining agreement, the terms of the contract may limit an employer’s ability to terminate an employee. Employers should review any agreements to ensure compliance with their terms.
  • Reduction in Force or Layoffs: Layoffs occur when employers terminate employees due to business reasons unrelated to individual performance. Even under at-will employment, employers must adhere to the law governing layoffs, which is the federal Worker Adjustment and Retraining Notification (WARN) Act.
  • Final Paycheck Requirements: Idaho law requires employers to provide the final paycheck to terminated employees on the next scheduled payday or within ten days after termination.

At-Will Employment in Idaho

What is At-Will Employment?

At-will employment means that employers can fire an employee at any time, for any reason, or no reason at all, without prior notice, as long as it is not illegal. Similarly, employees can also resign from their jobs at any time for any reason.

Idaho follows this type of employment. The at-will document offers flexibility for both employers and employees, but it also requires careful consideration of the exceptions in place to ensure fairness in the workplace.

What are the Exceptions to At-Will Employment in Idaho?

In Idaho, while at-will employment is the default, there are several exceptions where employment may not be terminated at will to ensure that employees are not fired for illegal and unethical reasons. Exceptions include:

  • Discrimination: Employers cannot terminate employees based on race, color, religion, sex, national origin, age, or disability. This is in line with federal and state anti-discrimination laws.
  • Retaliation: Employees cannot be fired for engaging in protected activities such as reporting illegal conduct, filing a complaint with a government agency, or participating in investigations or legal proceedings related to employment rights.
  • Contractual Agreements: If there is an employment contract that specifies conditions under which termination can occur, the terms of that agreement take precedence over at-will employment.
  • Public Policy: Employers cannot terminate employees for reasons that violate public policy. For example, firing someone for taking leave to serve on a jury or for exercising rights protected by law is generally prohibited.

Employment Under Contract in Idaho

In Idaho, employment under contract involves a formal agreement between an employer and an employee that outlines the terms and conditions of their employment. These contracts can be for a specific term, such as one year or an indefinite period. An employment contract should outline job duties, compensation, benefits, and termination conditions.

Although Idaho generally follows at-will employment principles, meaning either party can terminate the employment relationship at any time, a contract can override this default if the contract includes a termination clause. This may involve providing notice or fulfilling other contractual obligations. If the employee is terminated for reasons not covered by the contract, the employee may have grounds for a legal claim.

Lawful Termination in Idaho

Legal Grounds for Termination in Idaho

In Idaho, while employment is generally “at-will,” meaning either party can terminate the employment relationship at any time, there are legal grounds for termination:

  • Performance-Based Reasons: Employers can terminate employees based on performance issues or failure to meet job expectations, provided these reasons are not discriminatory or retaliatory.
  • Misconduct: Termination for misconduct, including theft or other inappropriate behavior is generally permissible. Employers should ensure that such terminations are well-documented and consistent with company policies.
  • Business Needs: Terminations due to business needs, such as downsizing, restructuring, or financial difficulties, are valid as long as they are not discriminatory or retaliatory. Employers should follow any applicable procedures for layoffs.
  • Violation of Company Policies: Employees who violate company policies or procedures may be terminated. Employers need to ensure that these policies are clear, consistently enforced, and communicated to all employees.
  • End of Employment Contract: If an employee is on a fixed-term contract, termination at the end of the contract term is generally permissible. Termination before the end of the contract period may require adherence to terms or payment of damages.

Employers should ensure that terminations are conducted in a manner that complies with these legal grounds and avoid any practices that could lead to wrongful termination claims.

Read our comprehensive guide to firing employees in Idaho for further information.

How Do I File a Wrongful Termination Claim in Idaho?

Filing a wrongful termination claim in Idaho involves several steps. Employees are encouraged to collect all relevant documents related to their employment and termination, including their employment contract, performance reviews, emails, and any correspondence related to their dismissal. It is also essential for employees to check their employment handbook or employer’s policies to understand any procedures for filing complaints or disputes. Some employers may require employees to follow internal grievance procedures before pursuing any legal action.

Employees who believe they have been wrongfully terminated can file a complaint with the Idaho Human Rights Commission (IHRC) or the Equal Employment Opportunity Commission (EEOC).

Legal Protections During Termination in Idaho

In Idaho, employees have several legal protections during termination under both federal and state laws. These protections aim to prevent wrongful termination and ensure fair treatment.

  • Title VII of the Civil Rights Act of 1964: Title VII of the Civil Rights Act of 1964 prohibits discrimination based on race, color, religion, sex, or national origin in employment. It ensures that employees are not terminated or treated unfairly because of these protected characteristics.
  • Age Discrimination in Employment Act (ADEA): The Age Discrimination in Employment Act (ADEA) protects employees aged 40 and older from discrimination based on age. It is illegal for employers to terminate employees because of their age.
  • Americans with Disabilities Act (ADA): The Americans with Disabilities Act (ADA) prohibits discrimination against qualified individuals with disabilities in all aspects of employment, including termination. Employers cannot terminate an employee solely due to their disability.
  • Family and Medical Leave Act (FMLA): The Family and Medical and Leave Act (FMLA) entitles eligible employees to take unpaid leave for certain family and medical reasons without risking their job. This includes leave for a serious health condition or to care for a family member with a serious health condition. Terminating an employee for taking FMLA leave or for reasons related to their use of FMLA leave is illegal.
  • Whistleblower Protection: Idaho Code § 6-2104 protects public sector employees from retaliation for reporting illegal activities or unsafe practices within the workplace. If an employee is terminated as a result of whistleblowing, it is considered unlawful retaliation.
  • Idaho Human Rights Act: The Idaho Human Rights Act prohibits employment discrimination based on race, color, religion, sex, national origin, age, disability, or retaliation for filing a discrimination complaint. Similar to federal laws, this act ensures that employees in Idaho are protected from discriminatory termination practices.
  • Employment Security Law: Idaho Code § 72-1366 governs unemployment insurance and provides benefits to eligible individuals who lose their jobs through no fault of their own. It does not directly regulate termination practices but affects employees who are terminated and seek unemployment benefits. Eligibility for benefits may be influenced by the reason for termination.
  • Idaho Final Paycheck Requirements: Idaho Code § 45-606 requires that terminated employees receive their final paycheck on the next scheduled payday. Failure to comply with the final paycheck requirements can result in legal penalties for the employer.

Terminated Employee Benefits in Idaho

When an employee is terminated in Idaho, they may be entitled to certain benefits and protections:

  • Unemployment Insurance Benefits: Terminated employees may be eligible for unemployment benefits if they are unemployed through no fault of their own. Eligibility is determined by the Idaho Department of Labor. The application process for unemployment benefits involves providing details about the termination and previous employment.
  • Final Paycheck: Idaho law requires employers to provide the final paycheck to terminated employees on the next scheduled payday or within ten business days. The final paycheck should include all earned wages, including any accrued but unused vacation time if the employer’s policy or employment contract provides for it.
  • COBRA And Health Insurance: If the employer has provided health insurance, the terminated employee may be eligible for continued coverage under the Consolidated Omnibus Budget Reconciliation Act (COBRA) if the employer has 20 or more employees. COBRA allows employees to continue their health insurance for a limited period (usually up to 18 months) at their own expense.

Layoffs in Idaho

Layoffs occur when a company needs to reduce its workforce for reasons such as economic downturns, business restructuring, job redundancy, or closing of business units or the entire company. Employers in Idaho are required to follow the federal Worker Adjustment and Retraining Notification (WARN) Act, which requires employers with 100 or more full-time employees to provide advance notice if a plant closing or mass layoff occurs.

Employers in Idaho must comply with the following notice requirements:

  • Plant Closings: Employers must provide at least 60 days advance notice if they are closing a facility that employs 50 or more employees.
  • Mass Layoffs: Employers must give at least 60 days advance notice if a layoff will result in the loss of 500 or more employees or 50 to 499 employees if they make up at least 33% of the workforce.

Resignations in Idaho

Resignations occur when an employee decides to leave their job, either voluntarily or involuntarily.

Voluntary Resignations

Voluntary resignation occurs when an employee chooses to leave their job on their own accord, rather than being terminated or laid off. Employees typically provide advance notice to their employer, which is often outlined in company policy or an employment contract. A common practice notice period is two weeks, but it can vary depending on the organization or role

Employers in Idaho are required to provide the final paycheck on the next scheduled payday or within ten business days.

Involuntary Resignations

Involuntary resignation, often referred to as constructive discharge, happens when an employee is forced to resign due to circumstances created by the employer, making it untenable for the employee to continue working. Circumstances include a significant reduction in pay or benefits, major alterations to the employee’s role or responsibilities without consent, unsafe working conditions, harassment, or discrimination.

Employees who resign due to constructive dismissal may file wrongful termination claims. They need to prove that the resignation was forced by the employer’s actions and that those actions were a breach of contract or illegal.

Legal Cases Related to Wrongful Termination in Idaho

1. Cosmetic Manufacturing Company Settles $30,000 for Wrongful Discharge Over Racial Discrimination

In the case of EEOC v. Northwest Cosmetic Labs LLC, a black British intern, born in Zimbabwe, was hired remotely for a full-time paid internship in Northwest Cosmetic Labs, a cosmetic manufacturing and formulation company. Despite not interviewing in person due to her being in England at the time, she was selected for the role and relocated to Idaho Falls. Upon her arrival, she encountered discriminatory comments and unequal treatment compared to her white colleagues, and she was given little direction from her supervisors and was rarely given tasks compared to her peers. After raising these concerns with management, she was terminated shortly after.

The EEOC sued Northwest Cosmetic Labs, alleging violations of Title VII of the Civil Rights Act of 1964 due to race, color, and national origin discrimination and retaliation. The case was settled for $30,000 and the company agreed to implement several corrective measures, including adopting a non-discrimination policy, conducting anti-discrimination training, and submitting semi-annual reports to the EEOC.

Key lessons learned from this case:
  • Employers must ensure that all employees are treated fairly, regardless of race or national origin, and that discriminatory biases do not influence employment decisions.
  • Employers must address discrimination complaints promptly to prevent escalation and legal consequences.
  • Retaliation against employees who assert their rights or report discriminatory behavior is illegal. The case demonstrates that firing employees who raise valid concerns about discrimination can lead to legal consequences.
  • Employers should establish and enforce comprehensive anti-discrimination policies and conduct regular training to help prevent discriminatory practices and ensure compliance with federal and state laws.

2. Idaho Transportation Department Pays $750,000 to Settle Retaliatory Termination Lawsuit

In the case of Lowe v. Idaho Transportation Department (ITD), Pam Lowe was the first female Director of Transportation at the Idaho Transportation Board who was fired due to her resistance to political pressure and alleged gender discrimination. She argued that her firing was a retaliatory response to her attempts to cut a multimillion-dollar contract with politically connected firms.

Despite the ITD’s belief that the termination was justified and within their legal rights, they opted to settle the case to avoid the escalating costs and risks of continued litigation. The settlement includes $562,500 directly to Lowe and $187,500 for Lowe’s attorneys. The lawsuit settlement includes a positive job recommendation for Lowe, and a “non-disparagement” clause, preventing both parties from publicly criticizing each other.

Key lessons learned from this case:
  • Employers should be cautious of actions perceived as retaliatory, especially when influenced by external pressures. Retaliatory terminations can lead to significant legal and financial consequences.
  • The case demonstrates that settling disputes early can be more cost-effective than prolonged litigation, which can accrue significant legal fees and potential damages.
  • The case shows that including non-disparagement clauses in settlements can help manage public relations and prevent further conflicts.

Learn more about Idaho Labor Laws through our detailed guide.

Important Cautionary Note

This content is provided for informational purposes only. While we make every effort to ensure the accuracy of the information presented, we cannot guarantee that it is free of errors or omissions. Users are advised to independently verify any critical information and should not solely rely on the content provided.