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What employees should know about non-disclosure agreements

Every business, regardless of whether they are small or large, depend on innovation in order to compete in the marketplace. This competitive edge is commonly secured by being unique and letting their employees cultivate great ideas so that the business can benefit.

However, competitiveness also depends on keeping quality employees around, as well as the intellectual property that is developed while in the business’ employ. This is especially important if confidential information is used in the development of new products. Because of this, it is expected that employees sign non-disclosure agreements. 

Like their name, non disclosure agreements (NDA’s) are essentially contracts where an employee pledges not to disclose any proprietary information to unauthorized parties while an employee of the business, as well as after the employee leaves. Also, like any other contract, there is some type of benefit (usually money) that is given in exchange for an employee’s promise not to disclose confidential information.

But just because an employee is presented with an NDA doesn’t mean that he or she should always sign it. There are limits to how long an NDA may be enforceable, such as what types of information may be disclosed, how long it may be in effect, and what legal remedies may be sought in the event of a breach. Because of this, it is prudent to have an experienced employment law attorney review an NDA before you sign it.

If you have any other questions about non-disclosure agreements, a skilled employment law attorney can help.

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