A lot of companies know they need to have non-disclosure agreements (NDAs) with their employees. So, they hand these agreements to their employees upon on-boarding, along with other hiring paperwork, then file them away in personnel files, and never look at them again until a problem arises.
While having a signed non-disclosure agreement checks off an important legal box, practically speaking it falls far short of educating employees about the importance of maintaining the confidentiality of the company’s proprietary information and trade secrets and the consequences of breaching their NDAs.
So, the truth behind the non-disclosure agreements is that employees must be able to understand them and know the consequences of violating such agreements. Therefore, in order to maximize the effectiveness of their NDAs, companies should do the following:
Bottom line is that if your employees do not know what the company considers confidential and are not afraid of the consequences of violating their non-disclosure agreements, they will not be deterred from violating their NDAs, whether intentionally or inadvertently.
Leiza litigates non-compete and trade secrets lawsuits on behalf of COMPANIES and EMPLOYEES in a variety of industries, and knows how such disputes typically play out for both parties. If you need assistance with a non-compete or a trade secret misappropriation situation, contact Leiza for a confidential consultation at LDolghih@GodwinLaw.com or (214) 939-4458.