Armstrong & Associates Employment Law Firm

What are the required elements of a NDA?

Non-disclosure agreements are common in business. They seek to ensure that when a company hires you that you cannot share the information you learn about it. It helps keep business competitive and safeguard business processes, procedures and secrets. 

According to the Texas Workforce Commission, the law does not completely favor the use of NDAs, and it can be difficult to enforce them. If you do want to use one, it must include all the required elements. 

The agreement

The agreement itself must have reasonable time, location and scope limits that are clear and concise. It also must include a promise. This might be something deliverable in the future or it could be something the employee receives right away. For example, if the employee must sign the NDA to go through job training with your company, then the promise is he or she will receive job training. Upon signing the agreement, the employee receives the training. 

The proof

The law also requires you to show proof of why you need an NDA. You have to show that if you cannot enforce the agreement, it will cause harm to your business or place a burden on your business. Essentially, you need to show that without a confidentiality agreement, it would be difficult to make money. 

Because of this requirement, you may want to reconsider an NDA. If you cannot enforce it, then it is not worth making your employees sign it. You should consider an alternative option that is more likely for the court to uphold and that offers you similar protections. A confidentiality agreement, for example, typically goes over better with the courts. 


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