To make sure you have the correct portion on your NDA, provide both your legal and business name and business address. NDLs are an almost foolproof way to confirm that confidential information remains protected in a large number of situations. Before signing or drafting a document, it is important to be aware of how these legal agreements work, as good information can help you make the best legal decisions now and later. If you violate the provisions of a legally binding confidentiality agreement, your employer may obtain a cease order to prevent you from continuing to participate in illegal activities. In addition, in certain circumstances, an employer may bring an action for financial damages for all losses related to your breach of confidentiality obligations. Note that Massachusetts law allows a court to double the amount of damages if the judge deems it appropriate. These agreements may be unilateral when only one party transmits confidential information (“party”) to the other (“receiving party”), or may be reciprocal if both parties disclose and are required to keep secret the disclosures of the other party, unless they have given permission to do otherwise. Bailey adds, “Individuals have the right to obtain independent legal advice if they receive an NDA and to have their employer pay for the service.” There are clauses that fly over most people that restrict their rights. Some contain a non-disparagement clause, non-competition clause or a lump sum compensation clause. “The very purpose of a confidentiality agreement is not to cover up embarrassing or criminal acts of a company,” said Max Kennerly, a Philadelphia attorney who has written on the topics. “Outside of a trade secret where a company has a real business reason to contain something very close, each of these confidentiality agreements buys silence in a sexual harassment or assault case or tries to buy silence.” Confidentiality agreements are a double-edged sword. On the one hand, when valid, they protect the disclosing party from loss of ownership of confidential information.
On the other hand, if they are not enforceable, they can cause the disclosed party to lose ownership of this information, resulting in serious commercial consequences. Caution in entering into a confidentiality agreement and non-disclosure of confidential information before entering into a confidentiality agreement are good preparatory steps for the protection of that information. However, companies must take additional measures to preserve the secrecy of this information so that the agreement is enforceable in the event of a breach by a re-received party. While it is useful to be aware of the frequent issues that may arise during implementation, companies should check the applicability of the specific terms of a confidentiality agreement when developing and implementing previous confidentiality agreements in order to ensure the protection of their confidential information. Perkins told FRONTLINE that she and a colleague – who accused Weinstein of raping her – had signed a confidentiality agreement. They agreed not to talk about the incident in exchange for a financial deal of about $200,000. Perkins also insisted that steps be taken to protect other Weinstein employees at Miramax from future harassment. Confidentiality agreements are not a new development in the Massachusetts employment landscape, given that employers have used them for decades to prevent competitors from gaining access to information that could give another company a competitive advantage. Recently, privacy agreements have lost popularity in the digital age, where software and technology developers are trying to protect proprietary information and trade secrets.
In the retail sector, employers use them to protect customer lists whose development requires considerable investments in terms of costs and resources. Yet almost all employers in any industry may have reasons to sign a confidentiality agreement.. . .