What Every Employee and Employer Needs to Know About
Confidentiality & Non-Disclosure Workplace Agreements
By: Atty. Steve Rosenberg
When you think of company secrets, you perhaps think of a defense
contractor building high-tech laser guided weapons. But the accounting firm down the street, the
local hair salon, and even your trusty auto mechanic all possess secret or
confidential information that it may want to protect. Not many people realize that something as
simple and rudimentary as a business’ customer or client list, can be
considered secret or confidential information.
“Protected Information” can vary from employer to employer. Consequently, it is important for every
employee to understand exactly what information is considered “protected” in
their particular workplace.
Whether you work for a Fortune 500 company or a small “mom and pop” business, chances are that when you were hired, you signed either a document acknowledging receipt of an Employee Handbook, or some other type of Employment Contract or Agreement, containing language whereby you agreed to refrain from sharing certain company information.
Non-Disclosure or Confidentiality Agreements are becoming more and morecommon in the workplace, as businesses attempt to gain and protect their
competitive edge. As a result, an increasing
number of employees are routinely being asked to sign these agreements when
they begin a new job; and do so – without fully understanding the legal
ramifications of what they have signed.
Many new employees are unaware that they can still potentially be held
liable or even terminated from their employment, if they unintentionally
disclose their employer’s protected information, whether or not the inadvertent
disclosure resulted in actual harm to the employer.
For example, Google made headlines recently for firing an employee who leaked a “Confidential” memorandum it had distributed to all of its 23,000employees, which announced a pay hike for all company employees. Although the leaked Memorandum presented Google
in a favorable light, it was considered “confidential”, and thus, the offending
employee was terminated – sending a chilling reminder to all Google
employees of the importance of understanding exactly what are considered
company secrets, and the ramifications
for revealing them.
What should an employee do to protect him or herself when accepting a
new job? Whether you are being
considered for a full-time, high level position or a part-time summer job, do
not sign anything unless you fully understand it first. It is not rude, but in fact is considered smart
to ask a potential employer for a copy of the Employment Contract or Agreement
to read on your own time, and at your own pace, or even to have an attorney
review it with you, to explain the terms and answer any questions you may have,
before you sign. Make certain you
understand exactly what your employer considers to be proprietary workplace
information. For example, if one your
new employer’s clients is a local news celebrity, disclosing that information
could be a violation of the company’s confidentiality policy, and grounds for
dismissal.
If you have already signed an agreement or contract of some type upon
accepting new employment, but are unsure or unclear about exactly what it is
you have signed, request a copy from
your employer. It is imperative to know
and understand all the terms and conditions of your employment; and within your
legal rights to request a copy of everything contained within your personnel
file.
As Confidentiality and Non-Disclosure Agreements become more common in
the workplace, employees need to become more diligent in educating themselves
as to their potential employer’s expectations.
Our employment attorneys can explain any language you might find
confusing, and educate you as to your rights, so you understand exactly what
this legally binding contract means to you.
On a personal note, my teenage son, who works for a major department
store during the summer months, disclosed that he had to sign an employment
document which prohibits him from disclosing company information. He did not have me review the document for
him prior to signing (naturally!), but hopefully, his tipping me off ahead of
time, of the store’s plans to offer a big sale on golf gear, is not a violation! ;)
Whether you are an employer or an employee, we would be happy to answer all of your employment related questions concerning confidentiality agreements and other workplace compacts. Contact us at South Shore Law and we can help protect
your interests. Everyday, our lawyers who live right here on the South Shore,
strive to deliver exceptional legal representation to our neighbors and friendsat affordable rates.
