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To enforce a non-disclosure agreement, the employer seeking enforcement must demonstrate that the information at issue qualifies as trade secret or confidential information. The NDA should specify the exchange and type of confidential information that cannot be disclosed.
For example, NDAs that prevent an individual from reporting illegal or unethical activity in the workplace may be deemed unenforceable because they interfere with important public policy goals, such as maintaining the integrity of the workplace and preventing discrimination or harassment.
While the rules can certainly vary from state to state, most jurisdictions consider non-disclosure agreements to be enforceable as long as they are drafted and executed properly.
Companies can require new employees and job interviewees to sign NDAs to keep sensitive information private. For example, a sales or marketing engineer could sign an NDA that prevents them from taking any customer data to another employer or starting their own business.
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.
The Employee agrees that he or she will not disclose to any person or entity, either directly or indirectly, the Confidential Information or Proprietary Data. Any use or disclosure of Confidential Information or Proprietary Data is cause for an action by the court of the State of [State] or a federal court.
Non-Disclosure And Confidentiality Policy The employee will preserve the confidentiality of information obtained during their employment at the Company. During the course of employment, the employee will have access to information concerning the Company which is not accessible to the public.
Massachusetts Law on Non-Disclosure Agreements: If you violate the provisions of a legally valid non-disclosure clause, your employer may sue to enjoin your activities and prevent you from continuing to engage in wrongdoing.