In California (and other U.S. states), there are special circumstances regarding confidentiality agreements and non-compete rules. California courts and legislators have signaled that they value an employee`s mobility and entrepreneurship in general more than protectionist doctrine. [7] [8] However, California courts generally find that these provisions, when they go beyond the date of termination of the employment contract, are “an inappropriate restriction of trade, unless they are based on ideas and concepts based on [trade] secrets or confidential information” of the former employer. Armorlite Lens Co. v. Campbell, 340 F.Supp. 273, 275 (S.D. Cal. 1972). This type of confidentiality would be considered too broad and excessively restrictive, as it would be almost impossible to comply with it. Non-competition – The non-competition clause is used to protect a company when a worker chooses to compete in the same field as their employer. In California, trade secrets must fit a very precise definition.

A trade secret must be a formula, pattern, device, etc., that is valuable precisely because it is not known to the public. In addition, appropriate efforts must be made to protect its secrecy. Confidentiality agreements cannot simply claim to prohibit the disclosure of trade secret information without ensuring that there is indeed a trade secret. Properly developed confidentiality agreements may prohibit employees from disclosing a wide range of confidential business information. For example, they can protect: to create the document, you must first upload a free California confidentiality agreement, and then indicate what you need to keep confidential and why. Once you have set out these details, all contracting parties will have to sign the document. Although an employer has the right to protect his company`s trade secrets, the scope of this protection is limited. While an employer has the right to require its employees to sign an NDA when they have access to valuable corporate data (for example. B product formulas, private customer lists, financial reports, etc.), the employer should not ask an employee to sign a confidentiality agreement if the purpose is to protect information known to all sectors. or a list of customers available on the Internet or through another source. Do you have questions about a confidentiality agreement? Need a confidentiality agreement? Need a confidentiality agreement? Not sure if the form contract you picked up somewhere is valid? This is probably not the case.

Call 818-849-5206 for a consultation with Melissa Marsh. As a business lawyer for over 10 years, I have seen my fair share of unnecessary and unenforceable confidentiality agreements and confidentiality agreements. .