Non-disclosure agreements (NDAs) or clauses prevent workers from disclosing specific information about their employers and workplaces. Non-disclosure agreements are widely used: recent data suggest that over one-third of US workers are bound by one.
To protect trade secrets, companies traditionally use non-disclosure agreements. During the 1980s, non-disclosure agreements expanded to prevent workers from discussing workplace issues, including:
Employees who sign legally binding non-disparagement agreements are prohibited from publicly criticizing their employer or disclosing any negative information about them, no matter how true those facts are. Employees typically sign NDAs that restrict them from disclosing violations of their rights in two situations:
Following the #MeToo movement, it has become clear that individual stories can bring about change. To counteract NDAs, policymakers should prohibit employers from requiring individuals to sign NDAs and limit NDAs used in settlement, separation, and severance contracts.
Employers often ask new employees to sign a non-disclosure agreement (NDA) to protect intellectual property. A non-competition clause can also be included to prevent employees from taking on too similar a job upon leaving.
A business's ability to create value has changed, resulting in a growth in use. Especially with technology companies, whose products and services require time to bring to market and therefore have little revenue, much of the valuation of the business is determined by intellectual property.
NDAs do not guarantee idea protection. If the claimant requests a non-disclosure agreement to keep their idea confidential, some laws may allow the use of non-disclosure agreements.
| State | Non-Disclosure Agreement Law |
|---|---|
| Alabama | Businesses Can Protect Their Proprietary Information Under Title 8, Chapter 27 (Alabama Trade Secrets Act) |
| Alaska | Section 25 Of Title 9 Of The Alaska Statutes 2021. Privileges, Evidence, And Presumptions Article 4. Self-Audit Privileges And Immunities. Sec. 09.25.455. Disclosure And Waiver |
| Arizona | Under Title 44, Chapter 4 (Uniform Trade Secrets Act), Truly Confidential Information Could Include Customer Lists, Financial Information, And Strategic Plans |
| Arkansas | Title 23 Of The Arkansas Code Contains Chapter 63 - Insurance Companies And Subchapter 19 - Property And Casualty Actuarial Opinion Law 23-63-1905. Confidentiality |
| California | 2016 California Code - CCP Part 2 - Of Civil Actions Title 14 - Of Miscellaneous Provisions Chapter 3.5. Confidential Settlement Agreements Section 1002 |
| Colorado | 2018 Colorado Revised Statutes Title 7 - |
Article 64 - Colorado Uniform Partnership Act (1997) Part 1 - General Provisions. Statute Of Frauds And The Effect Of Partnership Agreements
765 1026/ - Revised Uniform Unclaimed Property Act.
Article 14 - Confidentiality And Security Of Information
Article 4 - Labor Conditions; Payment Of Wages Section 50-4-36 - Workplace Sexual Harassment, Discrimination, And Retaliation Claims; Nondisclosure Agreements And Certain Actions Prohibited.
Chapter 1 – Practices and Employment Relationship Part 1 - Hiring Practices § 50-1-108. Non-Disclosure Agreement For Sexual Harassment In Workplace As Condition Of Employment Prohibited
In the post-dispute context, some workers' advocates warn that banning NDAs completely could have unintended negative consequences for those harassed at work. Discrimination and harassment victims may wish to maintain confidentiality about information related to:
No state has completely banned NDAs post-dispute to date. In many states, however, the victim can determine whether to sign an NDA or not. A policy should include elements that shift power imbalances, prevent workers from being coerced into signing a non-disclosure agreement, and limit the abusive scope of NDAs.
In addition to bringing much-needed transparency to worker rights violations, limiting the use of NDAs will empower victims and hold harassers and employers accountable. Make sure that your NDAs follow the rules required in your state.
Sources:
Table of Contents:Non-disclosure agreements (NDAs) or clauses prevent workers from disclosing specific information about their employers and workplaces. Non-disclosure agreements are widely used: recent data suggest that over one-third of US workers are bound by one.
To protect trade secrets, companies traditionally use non-disclosure agreements. During the 1980s, non-disclosure agreements expanded to prevent workers from discussing workplace issues, including:
Employees who sign legally binding non-disparagement agreements are prohibited from publicly criticizing their employer or disclosing any negative information about them, no matter how true those facts are. Employees typically sign NDAs that restrict them from disclosing violations of their rights in two situations:
Following the #MeToo movement, it has become clear that individual stories can bring about change. To counteract NDAs, policymakers should prohibit employers from requiring individuals to sign NDAs and limit NDAs used in settlement, separation, and severance contracts.
Employers often ask new employees to sign a non-disclosure agreement (NDA) to protect intellectual property. A non-competition clause can also be included to prevent employees from taking on too similar a job upon leaving.
A business's ability to create value has changed, resulting in a growth in use. Especially with technology companies, whose products and services require time to bring to market and therefore have little revenue, much of the valuation of the business is determined by intellectual property.
NDAs do not guarantee idea protection. If the claimant requests a non-disclosure agreement to keep their idea confidential, some laws may allow the use of non-disclosure agreements.
| State | Non-Disclosure Agreement Law |
|---|---|
| Alabama | Businesses Can Protect Their Proprietary Information Under Title 8, Chapter 27 (Alabama Trade Secrets Act) |
| Alaska | Section 25 Of Title 9 Of The Alaska Statutes 2021. Privileges, Evidence, And Presumptions Article 4. Self-Audit Privileges And Immunities. Sec. 09.25.455. Disclosure And Waiver |
| Arizona | Under Title 44, Chapter 4 (Uniform Trade Secrets Act), Truly Confidential Information Could Include Customer Lists, Financial Information, And Strategic Plans |
| Arkansas | Title 23 Of The Arkansas Code Contains Chapter 63 - Insurance Companies And Subchapter 19 - Property And Casualty Actuarial Opinion Law 23-63-1905. Confidentiality |
| California | 2016 California Code - CCP Part 2 - Of Civil Actions Title 14 - Of Miscellaneous Provisions Chapter 3.5. Confidential Settlement Agreements Section 1002 |
| Colorado | 2018 Colorado Revised Statutes Title 7 - |
Article 64 - Colorado Uniform Partnership Act (1997) Part 1 - General Provisions. Statute Of Frauds And The Effect Of Partnership Agreements
765 1026/ - Revised Uniform Unclaimed Property Act.
Article 14 - Confidentiality And Security Of Information
Article 4 - Labor Conditions; Payment Of Wages Section 50-4-36 - Workplace Sexual Harassment, Discrimination, And Retaliation Claims; Nondisclosure Agreements And Certain Actions Prohibited.
Chapter 1 – Practices and Employment Relationship Part 1 - Hiring Practices § 50-1-108. Non-Disclosure Agreement For Sexual Harassment In Workplace As Condition Of Employment Prohibited
In the post-dispute context, some workers' advocates warn that banning NDAs completely could have unintended negative consequences for those harassed at work. Discrimination and harassment victims may wish to maintain confidentiality about information related to:
No state has completely banned NDAs post-dispute to date. In many states, however, the victim can determine whether to sign an NDA or not. A policy should include elements that shift power imbalances, prevent workers from being coerced into signing a non-disclosure agreement, and limit the abusive scope of NDAs.
In addition to bringing much-needed transparency to worker rights violations, limiting the use of NDAs will empower victims and hold harassers and employers accountable. Make sure that your NDAs follow the rules required in your state.
Sources:
