What Employers Need to Know About Confidentiality Agreements

 Posted on March 10, 2021 in Business Law

Non-disclosure agreements (NDAs) are legally enforceable contracts that establish a confidential relationship between two parties. NDAs or confidentiality agreements are a valuable tool for employers in every industry. Business owners may use NDAs to protect important information from being misused by potential investors, employees, consultants, or other parties. If a party violates the terms of a confidentiality agreement, the non-breaching party may be able to take legal action and pursue restitution.

How Can a Non-Disclosure Agreement Protect My Business?

In the course of business, business owners often disclose sensitive information to others. Employees are often privy to confidential information about clients, products and services, trade secrets, business strategies, and more. Through a non-disclosure agreement, you can require employees to keep this information confidential. NDAs are often required as a condition of employment or they may be part of a severance package. A confidentiality agreement may also be part of a settlement agreement. NDAs are often subject to misunderstandings, but these contracts are important legal instruments that have a wide range of uses. However, NDAs must meet certain criteria to be enforceable, so it is important to work with a skilled attorney when drafting non-disclosure agreements.

What Are Some Possible Legal Remedies for Breach of a Non-Disclosure Agreement?

Breach of contract occurs when a party violates the terms of the NDA. An employee may share confidential information verbally, show secret documents or computer files to others, publish sensitive information online, purposely share business strategies with competitors, or even use confidential information to start a competing business against you.

If an employee or other party breaches the terms of your non-disclosure agreement, it is important to know your rights. You may be entitled to various legal remedies for the breach. The employee or the company that has conspired with the employee may be forced to pay monetary damages. You may also be able to get an injunction that prevents the employee from further sharing confidential information or from ever using the information he or she gained from your business. Additionally, you may be able to sue for violation of intellectual property law or copyright infringement. 

Contact a Greenwich, CT Breach of Contract Lawyer

Non-disclosure agreements are legally binding documents. As a business owner, if one of your employees violates the terms of an NDA or confidentiality agreement, you may be entitled to monetary damages or other remedies. Speak with a skilled Metro New York employment law attorney from Ivey, Barnum & O’Mara, LLC to learn more. Call our office today at 203-661-6000 to arrange a free, confidential consultation.

Source:

https://www.investopedia.com/terms/n/nda.asp