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Importance of a carefully drafted non-disclosure agreement

| Aug 29, 2019 | Employment Disputes |

Companies in California provide unique services and products for their customers. However, many different companies provide similar products and services. Therefore, it is important for these companies to develop an edge over the competition by providing a superior product or one that has improved features. In order to do this the company will want to keep the differences between their product and others on the market secret. To ensure that this happens they will often times have their employees sign non-disclosure agreements.

These agreements can be very important for keeping their edge over the competition. So, it is important to draft the non-disclosure agreement carefully and thoroughly. This is also important to help prevent or if not to prevent prevail in employment disputes between the employee and the employer if the employee does in fact violate the non-disclosure agreement.

Non-disclosure agreements should carefully define what is “confidential information” as well as the exclusions to confidential information. It should also specifically state the obligations of the employee receiving confidential information as well as the time period for which the non-disclosure agreement is effective. If all of these elements are included and defined carefully, it will be much easier to determine if an employee violates and the damages that the company could recover due to the violation of the non-disclosure agreement.

In order to produce products and provide services, companies in California must have unique features to differentiate themselves from the rest of the competition. These trade secrets and other confidential information about how the company operates are very important to the company and they have an interest to protect them. That is why non-disclosure agreements are important and properly written ones can be very valuable if employment disputes arise. Experienced attorneys understand the importance of properly drafted non-disclosure agreements and may be beneficial if disputes arise.