Release And Confidentiality Agreement Template for the United States

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What is a Release And Confidentiality Agreement?

The Release and Confidentiality Agreement is essential in situations where parties need to resolve potential claims while simultaneously protecting sensitive information. This dual-purpose agreement is particularly relevant in the United States, where it must comply with various federal and state laws, including the Defend Trade Secrets Act and state-specific employment regulations. The agreement typically includes detailed provisions for both the release of claims and the handling of confidential information, making it particularly valuable in employment separations, business transactions, and dispute resolutions.

Reviewed by

Swetha Meenal

Legal Engineer, GenieAI

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A lawyer, legal researcher and legal tech founder, Swetha has built AI products deployed inside Tier 1 firms and enterprises. She ensures GenieAI's alignment with the latest regulation and executes testing on the legal robustness of Genie output.

Reviewed by

Imad Mohammed Nazar

Legal Engineer, GenieAI

Imad Mohammed Nazar profile photo

A Skadden-trained M&A lawyer, Imad advised on cross-border transactions and contractual risk before moving into legal AI. He reviews GenieAI's output for compliance and enforceability across our 150+ supported jurisdictions, as well as facilitating external benchmarking.

Jurisdiction

United States

Publisher

GenieAI

Sector

Business

Cost

Free to use

Last updated

About the Release And Confidentiality Agreement

A Release and Confidentiality Agreement serves a dual legal purpose by combining dispute resolution with trade secret protection under United States federal law. This comprehensive document allows you to settle potential claims while ensuring sensitive information remains protected according to federal standards, particularly under the Defend Trade Secrets Act and Economic Espionage Act.

When do you need this document?

You need this agreement when resolving employment disputes where confidential information was shared, such as executive terminations involving access to customer lists or proprietary processes. It's essential during business acquisitions where due diligence requires disclosure of trade secrets but the deal may not proceed. The document is also critical when settling litigation involving former employees who had access to confidential information, or when contractors complete projects involving proprietary technology and you need both claim protection and ongoing confidentiality assurance.

Key legal considerations

The confidentiality provisions must clearly define what constitutes confidential information and specify duration of protection obligations, typically ranging from two to ten years depending on the information type. Release clauses should be carefully drafted to avoid overly broad language that courts might find unenforceable, particularly regarding future claims or violations of employee rights under the National Labor Relations Act. You must ensure the agreement doesn't restrict an employee's right to report violations to government agencies under whistleblower protections. The document should include carve-outs for information that becomes publicly available through no breach of the agreement, and specify remedies for violations including injunctive relief and monetary damages.

Legal requirements in United States

Under the Defend Trade Secrets Act, your agreement must include specific notice provisions informing parties of immunity from criminal and civil liability for confidential disclosure to government officials in certain circumstances. The Economic Espionage Act requires consideration of criminal liability implications when drafting confidentiality terms involving foreign entities or competitors. Federal Rules of Evidence govern how confidential information may be handled in future legal proceedings, so your agreement should address discovery and evidentiary protections. For government contractors, Freedom of Information Act considerations may limit confidentiality scope for certain information types. The agreement must comply with state employment laws regarding restrictive covenants, as federal law doesn't preempt all state regulations. Additionally, consideration requirements vary by state, so ensure adequate exchange of value supports both the release and confidentiality provisions to maintain enforceability across jurisdictions.

GOVERNING LAW

Applicable law

This Release And Confidentiality Agreement is drafted to comply with United States law. Key legislation includes:

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

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

Federal Rules of Evidence: Rules governing confidentiality in federal court proceedings and the admissibility of evidence, including provisions related to confidential information

Freedom of Information Act (FOIA): Federal law governing public access to government records, with implications for confidentiality agreements involving government entities or contractors

National Labor Relations Act (NLRA): Federal law protecting employees' rights to discuss working conditions, which may impact the scope of confidentiality provisions

EEOC Regulations: Federal regulations prohibiting discrimination and ensuring release agreements don't restrict rights to file discrimination charges

Age Discrimination in Employment Act (ADEA): Federal law requiring specific provisions in release agreements for employees over 40 years old

Older Workers Benefit Protection Act (OWBPA): Federal law specifying requirements for valid waivers of age discrimination claims, including mandatory review periods

State Trade Secret Laws: State-specific laws governing trade secret protection and confidentiality requirements, which may vary by jurisdiction

State Contract Laws: State-specific requirements for contract formation, enforcement, and interpretation

HIPAA: Federal law governing the protection of medical information and health records, relevant if agreement involves healthcare data

Gramm-Leach-Bliley Act: Federal law requiring financial institutions to protect customers' private information, relevant if agreement involves financial data

First Amendment Considerations: Constitutional protections for free speech that may limit the scope of confidentiality provisions

Whistleblower Protection Laws: Federal and state laws protecting individuals who report violations of law, which cannot be waived in confidentiality agreements

Contract Law Principles: Fundamental legal principles including consideration, enforceability, reasonableness of restrictions, and clarity of terms

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