Non-disclosure agreements (NDAs) are important employment law contracts. A Michigan resident may be asked to sign an NDA when they start a new job or are promoted into a position of authority. Generally, NDAs are used to protect information, trade secrets and other sensitive data that is proprietary to an organization. When a person breaks the terms of their NDA, they may face termination from their job or other penalties.
Not long ago the media company NBC announced that it would release former employees from their NDAs with regard to information that they may have concerning sexual harassment. Several prominent media and news figures have been accused of varying forms of sexual harassment against fellow colleagues but some potential victims may have hesitated to come forward due to their standing NDA agreements. An NDA can survive a person’s tenure with an organization.
Employment agreements, like NDAs, cannot protect employers from illegal actions or business undertakings. They can be restricted based on other criteria as well, and when individuals are asked to sign NDAs, they should be aware of what they are bound to keep secret or protect. Overly broad NDAs may not stand up to legal challenges, and individuals may have options for getting out of the contracts that bind them.
In many situations, individuals can have their trusted employment law attorneys look over their NDAs and other employment-based contracts. Employers may not bind their active and prospective workers to illegal or wrongful practices through the use of employment agreements. More information on this important topic should be sought from attorneys who work in the employment law field as this post does not contain any legal advice.