When it comes to running a business, you know that there are many things you need to have in place in order to succeed. One of these things is a solid risk mitigation and risk management plan. Preventing your business from suffering due can require you to pay attention to many things, including the need to prevent confidential information from getting into the wrong hands.
Nondisclosure agreements are commonly used today to enable businesses to discuss needs with vendors, channel partners, potential investors, potential buyers and more. Employees also may sign these contracts as they frequently have access to information that you want and need to protect. However, the use of NDAs with employees has come under some fire and requires a judicious eye.
As explained by Harvard Business Review, some nondisclosure agreements have been pointed to as attempts to prevent employees from calling out unethical or illegal activities. These contracts have also been accused of all but barring people from continuing a career in their chosen profession. Perhaps now more than ever, companies may want to re-evaluate which employees they request sign nondisclosure agreements, and what terms are included in those contracts. For example, it may be worthwhile placing a time limitation on the effectiveness of the contracts. The timing of when these contracts are created may matter as well.
If you would like to learn more about how you may be able to protect your business interests when it comes to safeguarding sensitive company information, please feel free to visit the nondisclosure agreements page of our California business law website.