Two new Idaho laws may affect businesses’ relationships with independent contractors and their management of public-facing restrooms. Employers should review existing policies and practices to determine whether updates are needed.
Independent Contractor Benefits
Effective July 1, 2026, Idaho’s new Portable Benefit Plan Act establishes a voluntary framework that allows businesses to contribute to portable benefit accounts for independent contractors without those contributions being treated as evidence of an employment relationship. The law is intended to expand benefit options for contractors while preserving independent contractor status. Although the new law provides additional flexibility for businesses, it does not eliminate misclassification risks. Employers with questions about contributing to portable benefit plans for independent contractors, evaluating independent contractor classifications, or assessing potential misclassification risks can contact one of the attorneys listed below.
Public Restroom Use
Effective July 1, 2026, Idaho’s new public restroom law makes it a crime for individuals to knowingly and willfully enter certain restrooms or changing rooms designated for use by the opposite biological sex in places of public accommodation. In June, a federal court issued a preliminary injunction partially limiting enforcement of the law. While the law does not impose new obligations on businesses, employers should keep in mind that they must continue to comply with federal law, including Title VII’s prohibitions on discrimination and harassment based on sex and gender identity. Employers with questions about navigating Idaho’s new law, including policies regarding restroom use, signage, or responding to employee or customer concerns, can contact one of the attorneys listed below.
Wage Notice Reminder
Although Idaho did not enact significant wage-and-hour changes this year, employers should remember that Idaho law requires employees to be informed of their rate of pay and regular payday at hire and generally requires advance notice of wage reductions. Idaho’s minimum wage remains $7.25 per hour. Employers should periodically review employee handbooks, employment agreements, and payroll practices to ensure they remain aligned with legal requirements.