Legal Templates
Employment Contract Confidentiality

Employment Contract Confidentiality for the United States

Employment Contract Confidentiality Template for United States

An Employment Contract Confidentiality agreement is a legally binding document used in the United States to protect an organization's confidential information, trade secrets, and proprietary data. This agreement establishes the terms and conditions under which an employee must maintain confidentiality during and after their employment. It includes specific provisions compliant with federal laws such as the Defend Trade Secrets Act and state-specific regulations regarding trade secrets and employee rights.

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What is a Employment Contract Confidentiality?

The Employment Contract Confidentiality agreement is essential for businesses operating in the United States that need to protect their sensitive information from unauthorized disclosure. This document is typically implemented at the start of employment or when an employee gains access to confidential information. It outlines the scope of confidential information, employee obligations, duration of confidentiality requirements, and consequences of breach. The agreement must comply with both federal and state-specific laws, including the Defend Trade Secrets Act and various state trade secret regulations. It's particularly crucial for roles involving access to proprietary information, trade secrets, or sensitive business data.

What sections should be included in a Employment Contract Confidentiality?

1. Parties: Identification of the employer and employee, including full legal names and addresses

2. Background: Context of the employment relationship and need for confidentiality agreement

3. Definitions: Detailed definitions of confidential information, trade secrets, and other key terms

4. Scope of Confidential Information: Detailed description of what constitutes confidential information

5. Employee Obligations: Specific duties regarding confidential information protection

6. Term and Survival: Duration of confidentiality obligations during and after employment

7. Return of Materials: Requirements for returning confidential materials upon employment termination

8. Governing Law: Applicable jurisdiction and choice of law

What sections are optional to include in a Employment Contract Confidentiality?

1. Non-Competition: Restrictions on competitive activities - include when allowed by state law and necessary for business protection

2. Intellectual Property Rights: Assignment of IP created during employment - include when employee may create IP during employment

3. Third Party Information: Handling of third-party confidential information - include when employee may have access to client/vendor confidential information

4. Security Procedures: Specific security protocols for handling confidential information - include for highly sensitive information or regulated industries

What schedules should be included in a Employment Contract Confidentiality?

1. Schedule A - Excluded Information: List of specific information excluded from confidentiality obligations

2. Schedule B - Security Protocols: Detailed security procedures and requirements

3. Schedule C - Prior Inventions: List of employee's pre-existing intellectual property

4. Schedule D - Acknowledgment Form: Employee's signed acknowledgment of receiving and understanding the agreement

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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Jurisdiction

United States

Publisher

Genie AI

Document Type

Confidentiality Agreement

Sector

Data Privacy

Cost

Free to use
Industries

Defend Trade Secrets Act (DTSA): Federal law that provides uniform standards for trade secret protection and allows companies to file civil lawsuits in federal court for trade secret misappropriation

Economic Espionage Act: Federal criminal law that prohibits theft of trade secrets with intent to benefit foreign powers or cause economic harm

National Labor Relations Act (NLRA): Federal law protecting employees' rights to discuss working conditions and ensuring confidentiality provisions don't restrict protected communications

Securities Exchange Act: Federal law relevant for publicly traded companies regarding disclosure obligations and insider trading provisions

State Trade Secret Laws: State-specific laws governing trade secret protection and enforcement at the state level

State Non-Compete Regulations: State-specific rules governing the enforcement and validity of non-compete and confidentiality provisions

State Employee Rights Laws: State-specific regulations protecting employee rights and limiting scope of confidentiality agreements

Reasonable Scope Doctrine: Legal principle requiring confidentiality provisions to be reasonable in scope and duration to be enforceable

Consideration Requirements: Legal principle requiring adequate consideration (value exchange) for confidentiality agreements to be binding

Public Policy Exceptions: Legal doctrine preventing enforcement of confidentiality provisions that violate public policy

Whistleblower Protections: Federal and state laws protecting employees who report illegal activities from confidentiality restrictions

Government Investigation Exception: Legal requirement to include exceptions for participating in government investigations

Attorney-Client Communications: Legal privilege protecting communications with attorneys from confidentiality restrictions

Public Domain Exception: Legal principle excluding publicly available information from confidentiality obligations

Severability Requirements: Legal principle requiring inclusion of provisions stating that if one part of agreement is invalid, others remain enforceable

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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