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How can a nondisclosure agreement help your business?

On Behalf of | Jun 10, 2019 | Contract Disputes

There may be trade secrets and other elements to your company that you do not want getting out to your competition and the public. When you employ people, there is a risk that your employees can talk about these things, inadvertently or not, or that they can later leave your employment and work for a competitor. Understandably, you and other Florida business owners may want to know how to reduce the chances of confidential information being leaked.

Suppose you just started a cookie company with a top-secret recipe for sugar cookies that helped launch your business into popularity. You would not want your employees to share the recipe with a competing bakery or even their family members and friends. Additionally, you would not want a former employee taking information about your clients and starting a competing cookie bakery. You may address this risk by including a nondisclosure agreement in your employment contract. According to FindLaw, an effective NDA should include the following points:

  • Specific confidential information – your secret recipe and clients’ contact information
  • The time period the agreement remains effective – usually up to five years
  • Those agreeing not to disclose the confidential information and from whom the information must be kept – competitors, associates and customers
  • Those exempt from confidentiality – those who already know the recipe

The elements of an employment contract can be complex and require careful planning to be fair and enforceable. Therefore, the information in this blog is meant to educate you, but it should not replace the advice of a lawyer.