What Nondisclosure And Confidentiality Agreements Mean For Your Business

Nondisclosure agreements, also known as confidentiality agreements or NDAs, are a valuable tool for businesses. They protect your intellectual property rights and competitive edge. They reassure your clients and also protect your business if an employee or ex-employee divulges confidential information. Clarity of contract permeates every agreement in a business and helps to limit costs and avoid litigation.

Limited competition agreements are under increasing scrutiny, especially when employment is conditional on signing one. It is critical that your employment contracts and confidentiality clauses be carefully written to comply with the law and withstand legal challenges. The experienced business law attorneys of Epstein & Weil LLC have written and reviewed employment contracts for businesses and employees in New York, including vetting of job prospects who are governed by an existing NDA or noncompliance.

As an employer, you understand that your employees are critical to your success because they are intimately familiar with your business and products. Our firm helps your business create dependable nondisclosure agreements that protect your interests.

The primary purpose of nondisclosure agreements is the protection of trade secrets. This can range from proprietary technologies and manufacturing processes to client lists and sensitive financial information. The NDA is a contract with the employee (or a key vendor or trade partner) to keep that information secret during employment and, perhaps more importantly, after the employment relationship or business transaction ends. If the agreement is breached, the employer can pursue injunctive relief or sue for damages.

Nondisclosure agreements, like other restrictive covenants, can go too far. If the language is overly broad or vague, a court may deem it unenforceable. The lawyers of Epstein & Weil LLC stay abreast of changes in the law and decisions in the state and federal courts to advise clients on how to protect their trade secrets without crossing the line.

The widespread use of nondisclosure agreements and a highly mobile workforce means that many potential hires are governed by an NDA from their previous employer. This need not deter you from hiring an otherwise qualified candidate, but caution is essential. Our attorneys can review the prior NDA to identify any potential conflicts, advise on what may constitute “trade secrets,” and protect your company from claims of unfair competition or tortious interference with contract. Whether you are an employer or a potential employee, knowing your rights and the limitations of an existing or proposed NDA is critical. Your new employee should not be unduly muzzled or prevented from applying skills and knowledge they acquired in their previous position. We help clients navigate this difficult and rapidly changing area of the law.