Should You Have Your Employees Sign a Non-Disclosure Agreement?

As an employer, you’ve likely heard about non-disclosure agreements (NDAs), which are exactly what they sound like they are – agreements that prevent a party from disclosing information to others. You may be wondering whether you need your employees to sign a non-disclosure agreement. The answer to this question, as it often is in the law, is that it depends.

Do Your Employees Have Access to Proprietary Information?

The question that you need to ask yourself as an employer is whether your employees have access to information that could benefit competitors. If they do, it’s probably a good idea to have them sign a non-disclosure agreement. Not only will having them sign a non-disclosure agreement provide you with an action for breach of contract should they disclose the sensitive information, but it will also almost be certainly be viewed as “reasonable efforts” to protect your trade secrets within the meaning of the Georgia Trade Secrets Act, providing you with additional protections.

So, what information should be protected? Here are some examples:

  • Processes
  • Client lists
  • Formulas
  • Manufacturing techniques
  • The results of internal studies
  • Propriety software code

If You Are Considering Using an NDA, Call an Attorney

If you’ve read this and think you need an NDA, you may be tempted to download the first generic NDA you find on the internet and have your employees sign it. This is a bad idea. NDAs are often declared invalid for various reasons, so it’s important to have an experienced attorney carefully tailor your non-disclosure agreement to the needs of your business.    

Call Battleson Law Today to Schedule a Free Consultation with an Attorney

If you’re an employer and are concerned about your employees disclosing proprietary information, a non-disclosure agreement is one way to enforce your rights. To discuss your employment and intellectual property law needs with an experienced attorney, call Battleson Law today at 404.382.8149 or contact us online.

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