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NDAs, or non-disclosure agreements, are legally enforceable contracts that create a confidential relationship between a person who has sensitive information and a person who will gain access to that information.
Some NDAs may have an expiration clause that lasts for a certain number of years after the agreement is signed, while others may specify an expiration date. In some cases, an NDA may have no expiration date, and the confidential information must be kept secret indefinitely.
Since NDAs are civil contracts, breaking one isn't technically a crime. However, it could come with severe financial penalties. Violating an NDA leaves you open to lawsuits from your employer, and you could be required to pay financial damages and possibly associated legal costs.
Agreements that are overly broad, oppressive, or attempt to contain non-confidential information will also be challenged or invalidated by the courts. Before Signing an NDA, always have a lawyer review it. Keep an eye out for onerous clauses and proceed with caution before putting your name to anything.
In general, NDAs are used when there is a unilateral flow of classified data, while confidentiality agreements are designed to be used when two or more parties share proprietary information.
The law makes it illegal to enforce an NDA that would prevent a sexual harassment or assault victim from speaking out about their allegations. The law makes it clear that it applies to any claim that is filed after the date that the bill was signed into law, regardless of when the NDA was dated.
While Washington and California have passed Silenced No More Acts, other states, including New York, Illinois, New Jersey and Oregon, have enacted their own NDA-narrowing provisions that cover all forms of employment discrimination.
Hawaii is now one of 15 states that restrict employers' use of NDAs to prevent employees from openly discussing allegations of workplace sexual misconduct. Hawaii law also prohibits employers from retaliating against an employee for disclosing or discussing sexual harassment or sexual assault.