by the Brightmine Editorial Team
Nondisclosure agreements (also referred to as confidentiality agreements) are an important tool for businesses to protect sensitive information that is shared with employees, such as trade secrets, proprietary and customer data and strategic business plans. These agreements help organizations maintain their competitive edge in the market.
Employers may also include confidentiality clauses in a settlement or termination agreement to avoid negative publicity or damage to the company’s reputation.
Nondisclosure agreements generally are enforceable in all states, but some have laws restricting their use or enforcement. While federal law also restricts nondisclosure agreements in limited circumstances, most state laws have greater applicability and carve out exceptions in certain circumstances.
The following chart provides a comparative overview of state laws regulating nondisclosure restrictions, including:
- Restrictions – Subject matter that is regulated or prohibited.
- Exceptions – Statutory carve-outs that pertain to or limit the scope of restrictions.
- Definitions – How states define terms used in the statutory restrictions and exceptions.
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Nondisclosure agreement restrictions by state
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About the author
The Brightmine Editorial Team
Our in-house team of HR experts carefully monitors and updates the Brightmine HR & Compliance Center, the most comprehensive library of employment law and HR resources. This team has an unrivaled wealth of subject matter expertise, with an average of 15 years’ experience. They also bring invaluable, diverse career experiences to the table—the team includes seasoned employment law attorneys, former in-house counsel, SHRM certified professionals and career employment law editors.
In addition to managing the HR & Compliance Center, the Editorial Team supports the content across the Brightmine product portfolio. The Team also supports Marketing Resource Center with breaking HR news, Commentary and Insights, and expert review of key compliance resources, such as our free charts.