Employee Confidentiality and Security Agreement
Drafts a comprehensive Employee Confidentiality and Security Agreement to protect company proprietary information, trade secrets, and digital assets while establishing employee security responsibilities. Incorporates current legal standards, state-specific enforceability requirements, and compliance with data protection laws. Use for onboarding employees or updating policies in data privacy and cybersecurity contexts.
Employee Confidentiality and Security Agreement
Document Overview and Preparation
You are tasked with drafting a comprehensive, enforceable Employee Confidentiality and Security Agreement that protects the company's proprietary information, trade secrets, and digital assets while establishing clear security protocols and employee responsibilities. This agreement must balance robust legal protection with practical enforceability, comply with applicable data protection and employment laws, and remain accessible to employees regardless of their technical or legal background.
Before beginning the drafting process, conduct thorough preliminary research to ensure the agreement reflects current legal standards and industry best practices. Search the user's uploaded documents for any existing confidentiality agreements, employee handbooks, security policies, or related corporate governance documents that should inform the drafting. Review these materials to identify company-specific terminology, existing security protocols, industry-specific confidential information categories, and any established policies that must be incorporated or referenced. If the company operates in regulated industries such as healthcare, finance, or defense, search for relevant compliance requirements and industry-specific confidentiality standards that must be addressed.
Conduct targeted legal research to identify the governing state's current law on restrictive covenants, trade secret protection, and employment agreements. Verify the enforceability standards for confidentiality agreements in the applicable jurisdiction, including any recent case law addressing reasonableness of restrictions, blue-pencil or reformation doctrines, and consideration requirements. Research any state-specific statutes governing employee confidentiality obligations, such as the Uniform Trade Secrets Act provisions, state-specific trade secret laws, or employment law statutes that may impose limitations on confidentiality agreements. Pay particular attention to recent legislative developments affecting employee mobility, such as non-compete restrictions, wage discussion protections, and whistleblower statutes that must be accommodated within the agreement.
Section 1: Confidentiality Provisions
Definition of Confidential Information
Draft a comprehensive, legally robust definition of Confidential Information that provides maximum protection while maintaining enforceability and clarity. Begin with a broad foundational statement establishing that Confidential Information encompasses all non-public information, in any form or medium, that is disclosed to, learned by, created by, or otherwise comes into the possession of the employee during the course of employment, whether before or after the execution of this agreement. This introductory language should emphasize that protection extends to information regardless of whether it is specifically marked as confidential, if a reasonable person would understand it to be confidential based on its nature, the circumstances of its disclosure, or the context in which it is used.
Develop the substantive definition through carefully structured categories that flow logically from technical and proprietary information through business intelligence to relationship-based assets. Address technical confidential information by describing trade secrets, proprietary technologies, algorithms, source code, software architecture, technical specifications, research and development projects, experimental processes, engineering designs, manufacturing processes, quality control procedures, and technical know-how developed or used by the company. Transition to business strategy information, encompassing business plans, strategic initiatives, market analyses, competitive intelligence, pricing strategies, cost information, profit margins, financial projections, acquisition targets, expansion plans, and marketing strategies. Continue with customer and relationship information, including customer lists, customer preferences and requirements, supplier relationships, distributor networks, referral sources, contract terms with third parties, and business opportunity information. Address financial and operational data, covering financial statements, budgets, sales figures, revenue information, compensation structures, operational metrics, and performance data. Include intellectual property and creative works, such as inventions, patents, patent applications, copyrights, trademarks, branding materials, creative content, and proprietary methodologies.
Ensure the definition addresses information in all formats and media, explicitly stating that Confidential Information includes information in written, oral, electronic, visual, or any other form, whether stored on company systems, personal devices used for work purposes, cloud services, or any other medium. Address derivative information by clarifying that Confidential Information includes not only information directly received from the company but also analyses, compilations, studies, summaries, or other documents prepared by the employee that contain, reflect, or are derived from Confidential Information.
Conclude the definition with precisely articulated exceptions that protect the agreement's enforceability while recognizing legitimate limitations. Establish that information shall not be considered Confidential Information if the employee can demonstrate through clear and convincing evidence that the information: (a) was already in the public domain at the time of disclosure or subsequently entered the public domain through no breach of this agreement or other wrongful act by the employee; (b) was rightfully in the employee's possession prior to disclosure by the company, as evidenced by written records predating the disclosure; (c) was rightfully received by the employee from a third party without breach of any confidentiality obligation and without restriction on disclosure; or (d) was independently developed by the employee without reference to, reliance upon, or use of any Confidential Information, as evidenced by contemporaneous written documentation. Include critical language clarifying that the burden of proving any exception rests entirely with the employee and that the exceptions apply only to the specific information qualifying for the exception, not to combinations, compilations, or analyses incorporating such information with other Confidential Information.
Obligation of Confidentiality
Articulate the employee's core confidentiality obligations through layered provisions that establish both negative prohibitions and affirmative duties, creating a comprehensive framework for information protection. Begin with the fundamental non-disclosure obligation, stating that the employee shall hold all Confidential Information in strict confidence and shall not, directly or indirectly, disclose, reveal, report, publish, transfer, or otherwise communicate any Confidential Information to any person or entity outside the company without the prior written authorization of an officer of the company specifically authorized to grant such permission. Emphasize that this obligation applies during employment and continues indefinitely after termination of employment for information constituting trade secrets under applicable law, and for a specified period of years (typically three to five years, depending on jurisdiction and industry standards) for other Confidential Information.
Establish the limited use principle by clearly stating that the employee shall use Confidential Information solely and exclusively for the purpose of performing assigned duties within the scope of employment and for the benefit of the company, and shall not use Confidential Information for any personal purpose, for the benefit of any third party, or for any purpose competitive with or adverse to the company's interests. Articulate the standard of care required, specifying that the employee shall protect Confidential Information using the same degree of care used to protect the employee's own confidential information of a similar nature, but in no event less than a reasonable standard of care, and shall take all reasonable precautions to prevent unauthorized disclosure or use.
Address the employee's affirmative duties to safeguard information through specific protective measures. Require the employee to limit access to Confidential Information to other employees who have a legitimate need to know the information for business purposes and who are bound by confidentiality obligations at least as protective as those contained in this agreement. Establish the employee's obligation to ensure that Confidential Information is stored securely, whether in physical or electronic form, using company-approved security measures including encryption for electronic storage, locked storage for physical documents, and secure disposal methods when information is no longer needed. Require the employee to immediately notify the company's designated security officer or legal department upon becoming aware of any unauthorized disclosure, use, or access to Confidential Information, any loss or theft of documents or devices containing Confidential Information, or any circumstances suggesting that Confidential Information may have been compromised.
Incorporate essential provisions addressing legally compelled disclosure that protect both the company's interests and the employee's legal obligations. Establish that if the employee receives a subpoena, court order, or other legal process requiring disclosure of Confidential Information, the employee shall immediately notify the company's legal department and provide all relevant details about the demand, shall cooperate fully with the company's efforts to obtain a protective order or other appropriate relief, and shall disclose only that information which the employee's legal counsel advises is legally required to be disclosed after the company has had a reasonable opportunity to seek protection. Include critical language clarifying that this provision does not prohibit the employee from reporting possible violations of law to governmental agencies, cooperating with government investigations, or engaging in other protected whistleblower activities, and that the employee may disclose Confidential Information to the employee's attorney or as required by law in connection with such protected activities.
Address inadvertent disclosure scenarios by establishing that if the employee inadvertently or accidentally discloses Confidential Information in violation of this agreement, the employee shall immediately take all reasonable steps to prevent further disclosure, shall notify the company immediately with full details of the disclosure, and shall cooperate fully with the company's efforts to mitigate any harm and prevent further disclosure. Clarify that inadvertent disclosure does not excuse the breach but that the employee's prompt notification and cooperation will be considered in determining appropriate remedial measures.
Section 2: Security Responsibilities
Password and Access Control Policy
Establish comprehensive password and access control requirements that create enforceable security obligations while acknowledging practical usability considerations and evolving security standards. Begin with foundational principles establishing that the employee is responsible for maintaining the security and confidentiality of all authentication credentials, access codes, passwords, security tokens, biometric authentication data, and other access control mechanisms provided for accessing company systems, networks, applications, and facilities. Emphasize that these credentials are personal to the employee, may not be shared with any other person under any circumstances, and must be protected with the same level of care as the employee would protect personal financial account credentials.
Develop specific password creation and management requirements that reflect current security best practices while remaining achievable for employees. Require the employee to create strong, unique passwords for each company system that meet or exceed the company's technical requirements, which typically include minimum length of at least twelve characters, combination of uppercase and lowercase letters, numbers, and special characters, and avoidance of dictionary words, personal information, or easily guessable patterns. Establish that passwords must be unique to each system and may not be reused across multiple company systems or shared between company and personal accounts. Prohibit the employee from writing down passwords in any accessible location, storing passwords in unencrypted electronic files, using browser-based password storage for systems containing sensitive information unless specifically approved by the IT security team, or storing passwords in any manner that would make them accessible to others.
Address password protection and security practices through specific behavioral requirements. Require the employee to change passwords immediately upon any indication that a password may have been compromised, disclosed, or accessed by an unauthorized person, and to change passwords periodically as required by company policy or system requirements. Establish the employee's obligation to use company-provided password management tools when made available, to enable multi-factor authentication on all systems where available, and to protect physical security tokens, smart cards, or other authentication devices with the same care as Confidential Information. Prohibit the employee from attempting to circumvent, disable, or bypass password requirements, security controls, or authentication mechanisms, and from using automated password-cracking tools or similar utilities on company systems.
Articulate access control responsibilities that extend beyond passwords to encompass the employee's broader obligation to protect system access. Require the employee to log out of systems or lock workstations when leaving them unattended, to access company systems only through approved methods and devices, and to immediately report any suspicious access attempts, unusual system behavior, or indications that unauthorized persons may have gained access to systems. Establish that the employee's access rights are contingent upon active employment and proper authorization, that access may be modified or revoked at any time based on business needs or security concerns, and that all access rights automatically terminate upon separation from employment. Include provisions requiring the employee to cooperate with periodic access reviews, to promptly report when access rights are no longer needed for job responsibilities, and to never attempt to access systems, data, or facilities for which the employee has not been explicitly authorized.
Acceptable Use of Company Systems and Resources
Define the boundaries of acceptable use for company technology systems, networks, and digital resources through provisions that establish clear expectations while acknowledging legitimate business needs and reasonable personal use. Begin with the fundamental business purpose principle, establishing that all company-provided systems, networks, equipment, software, data storage, communication tools, and other technology resources are company property provided to employees to enable effective performance of job duties and must be used primarily and predominantly for legitimate business purposes that advance the company's interests. Acknowledge that limited, occasional personal use of company systems is permitted provided such use does not interfere with work responsibilities, does not consume significant system resources or bandwidth, does not violate any company policy or law, does not compromise system security, and does not create any actual or apparent conflict of interest or reputational risk for the company.
Develop prohibited activities through carefully structured categories that address security risks, legal compliance, and professional conduct. Address security-related prohibitions by establishing that the employee shall not install, download, or execute any software, applications, browser extensions, or code on company systems without prior approval from the IT department, shall not attempt to circumvent, disable, or bypass any security measures, firewalls, access controls, or monitoring systems, shall not connect unauthorized devices to company networks or systems, shall not use company systems to access, store, or transmit malicious code, viruses, or other harmful programs, and shall not engage in any activity that could compromise the security, integrity, or availability of company systems or data. Continue with content-related restrictions, prohibiting the employee from using company systems to access, download, store, or distribute illegal content, pornographic or sexually explicit material, content promoting violence or discrimination, pirated software or media, or any content that would violate copyright, trademark, or other intellectual property rights.
Address business conduct prohibitions by establishing that the employee shall not use company systems for operating an outside business, soliciting for outside business ventures, engaging in unauthorized commercial activities, making personal financial transactions unrelated to company business, or conducting any activity that competes with or conflicts with the company's business interests. Articulate communication standards requiring that all communications using company systems, including email, instant messaging, video conferencing, and social media, must maintain professional standards of conduct, must not contain harassing, discriminatory, threatening, or defamatory content, must comply with all applicable laws and regulations, and must not create legal liability or reputational harm for the company. Include specific provisions addressing social media use, establishing that employees who identify their company affiliation on personal social media accounts must include disclaimers that views expressed are personal, must not disclose Confidential Information through social media, and must not make statements that could reasonably be attributed to the company without authorization.
Incorporate provisions addressing mobile devices, remote access, and bring-your-own-device scenarios when applicable to the company's technology environment. For companies permitting personal device use for work purposes, establish that employees who access company systems or data from personal devices must comply with all security requirements applicable to company-provided devices, must install and maintain company-approved security software and mobile device management tools, must permit the company to remotely wipe company data from personal devices upon termination or security incident, and acknowledge that the company's monitoring and access rights extend to work-related data on personal devices. Address remote access by requiring employees to access company systems remotely only through approved VPN or secure access methods, to ensure that remote work locations provide adequate privacy and security for handling Confidential Information, and to take additional precautions when accessing company systems from public networks or shared computers.
Conclude with provisions addressing the employee's acknowledgment that company systems are not private, that the company reserves the right to monitor, access, and review all activities on company systems including email, internet usage, file storage, and communications, that such monitoring may occur without prior notice, and that employees should have no expectation of privacy in any information stored on or transmitted through company systems. Establish the employee's responsibility to use company resources efficiently and appropriately, to report any misuse of company systems by other employees, and to cooperate with investigations of system misuse or security incidents.
Security Incident Reporting and Response
Establish comprehensive protocols for identifying, reporting, and responding to security incidents that enable rapid response while protecting employees from retaliation and encouraging a culture of security awareness. Begin by defining security incidents in practical, accessible terms that enable employees to recognize reportable events without requiring technical expertise. Explain that a security incident includes any event, occurrence, or circumstance that has compromised or could potentially compromise the confidentiality, integrity, or availability of company information, systems, or assets, and provide concrete examples including suspected or confirmed data breaches, unauthorized access to systems or data, malware infections or suspicious software behavior, phishing emails or social engineering attempts, lost or stolen devices containing company information, inadvertent disclosure of Confidential Information to unauthorized persons, unusual system behavior or performance issues suggesting compromise, physical security breaches affecting information assets, and any other circumstance that raises security concerns.
Articulate immediate reporting obligations that emphasize the critical importance of rapid response while providing clear, actionable guidance. Establish that upon discovering or suspecting a security incident, the employee must immediately report the incident to the IT security team and the employee's direct supervisor, providing specific contact information including email addresses, phone numbers, and after-hours emergency contact procedures. Emphasize that "immediately" means as soon as reasonably possible and in no event more than a specified number of hours (typically two to four hours) after discovery, and that employees should err on the side of reporting when uncertain whether an event constitutes a security incident. Require the employee to provide all relevant information about the incident including what occurred, when it was discovered, what systems or information may be affected, what actions the employee has already taken, and any other details that may assist in incident response.
Develop provisions addressing the employee's cooperation obligations during incident investigation and response. Require the employee to preserve all evidence related to the incident, including not deleting files, not altering system configurations, not destroying physical evidence, and not taking any action that could compromise the investigation unless specifically instructed by the security team. Establish the employee's obligation to provide complete and accurate information to investigators, to make themselves available for interviews and follow-up questions, to document their actions and observations related to the incident, and to follow all instructions provided by the incident response team including potentially disconnecting from networks, changing passwords, or ceasing use of affected systems. Include provisions requiring the employee to maintain confidentiality regarding security incidents and investigations, sharing information only with those who have a legitimate need to know and are authorized to receive such information.
Incorporate critical protections encouraging reporting and security awareness. Establish explicit non-retaliation language stating that the company will not retaliate against any employee for reporting security incidents or potential security vulnerabilities in good faith, even if the incident resulted from the employee's mistake or violation of security policies, and that good faith reporting will be considered a mitigating factor in determining appropriate disciplinary measures. Emphasize that the company values security awareness and encourages employees to report concerns even if they later prove to be false alarms, and that employees will not face negative consequences for good faith reports that turn out not to involve actual security incidents. Include provisions establishing the employee's obligation to participate in security training programs, to stay informed about evolving security threats and company security policies, to complete required security awareness training within specified timeframes, and to apply security training to daily work activities.
Address the employee's ongoing security vigilance responsibilities by establishing expectations for proactive security awareness. Require the employee to remain alert to potential security threats, to question unexpected requests for sensitive information even from apparent company personnel, to verify the authenticity of unusual communications before responding or taking action, and to report suspicious activities or potential vulnerabilities even when not certain they constitute incidents. Establish that security is a shared responsibility and that all employees play a critical role in protecting company information and systems.
Section 3: Termination and Post-Employment Obligations
Return of Company Property and Information
Establish comprehensive, enforceable requirements for the return of all company property and confidential information upon termination of employment that address both physical and electronic assets across all storage locations and formats. Begin with a broad foundational obligation stating that immediately upon termination of employment for any reason, whether voluntary or involuntary, or at any earlier time upon request by the company, the employee shall return to the company all property, documents, materials, equipment, and information belonging to the company or containing or relating to Confidential Information, in any form or medium whatsoever, and shall not retain any copies, duplicates, reproductions, or excerpts thereof. Emphasize that this obligation is absolute and unconditional, applies regardless of the circumstances of termination, and extends to all items in the employee's possession, custody, or control, regardless of location.
Develop the scope of returnable items through detailed categories that flow logically from physical property through documents to electronic information. Address physical property by requiring return of all company-issued equipment including computers, laptops, tablets, mobile phones, storage devices, security tokens, access cards, keys, tools, vehicles, and any other tangible property provided by the company or purchased with company funds. Continue with physical documents and materials, encompassing all documents, files, records, notes, notebooks, memoranda, reports, studies, analyses, proposals, customer lists, correspondence, and any other materials in physical form that contain, reflect, or relate to Confidential Information, the company's business, or the employee's work for the company, regardless of whether created by the employee or received from others. Establish that this obligation extends to documents and materials located at the employee's home, in personal vehicles, in storage facilities, or at any other location outside company premises.
Address electronic information through comprehensive provisions that account for the complexity of modern data storage and the proliferation of devices and platforms. Require the employee to return or destroy all electronic files, data, emails, documents, and other information in electronic form containing or relating to Confidential Information or the company's business, including information stored on company-issued devices, personal devices used for work purposes, cloud storage services, personal email accounts, home computers, removable media, and any other electronic storage medium. Establish specific obligations to delete all company information from personal devices, to remove all company data from personal cloud storage accounts, to delete all company-related emails from personal email accounts, and to clear all company information from any other personal systems or services where it may have been stored. Require the employee to provide written certification confirming the deletion of all electronic information and specifying the devices and systems from which information was deleted.
Incorporate provisions addressing the employee's certification of compliance that create both evidentiary value and psychological commitment to compliance. Require the employee to complete and sign a detailed separation certification confirming that all company property has been returned, all electronic information has been deleted from personal devices and systems, no copies of any company information have been retained in any form, all obligations under this agreement are understood and will be honored, and the employee is not aware of any outstanding issues or unreturned items. Establish that this certification must be completed before final compensation will be released and that the employee's signature constitutes a representation upon which the company is entitled to rely.
Conclude with enforcement provisions that establish the company's rights to ensure compliance while respecting employee privacy to the extent possible. Grant the company the right to inspect the employee's workspace, company-issued devices, and any personal devices used for work purposes to verify compliance with return obligations, to be conducted in the employee's presence when feasible. Establish the company's right to remotely access and wipe company data from devices, including personal devices enrolled in mobile device management systems, upon termination or if the employee fails to return devices or delete company information as required. Include provisions stating that the employee's failure to return property or delete information as required constitutes conversion of company property and may result in legal action to recover the property, obtain injunctive relief, and recover damages and attorneys' fees. Clarify that the company's acceptance of returned property does not waive any rights regarding property not returned or information not deleted, and that the company may pursue additional remedies upon discovering non-compliance even after the employee's separation.
Survival of Confidentiality and Security Obligations
Articulate the post-employment continuation of confidentiality and security obligations through carefully structured provisions that establish enforceability while providing clarity about duration, scope, and the business justifications supporting these continuing restrictions. Begin with a comprehensive survival clause establishing that the employee's obligations under this agreement, including all confidentiality obligations, security responsibilities, and duties regarding company property and information, survive the termination of employment and continue in full force and effect after separation regardless of the reason for termination. Distinguish between obligations that continue indefinitely and those subject to temporal limitations, establishing that obligations regarding information constituting trade secrets under applicable law continue for so long as such information remains a trade secret, while obligations regarding other Confidential Information continue for a specified period of years after termination (typically three to five years, calibrated to jurisdiction-specific enforceability standards and industry norms).
Develop specific continuing obligations through detailed provisions that translate general survival principles into concrete behavioral requirements. Establish that after termination of employment, the employee shall continue to maintain all Confidential Information in strict confidence, shall not disclose Confidential Information to any person or entity for any purpose, shall not use Confidential Information for the employee's own benefit or for the benefit of any other person or entity, and shall continue to protect Confidential Information from inadvertent disclosure with the same standard of care required during employment. Address the employee's ongoing obligation to refrain from exploiting the company's Confidential Information, customer relationships, or business opportunities, establishing that the employee may not use knowledge of the company's customers, suppliers, or business strategies to divert business opportunities, solicit customers or clients, or otherwise compete unfairly with the company.
Incorporate provisions addressing employee and customer non-solicitation when such restrictions are appropriate and enforceable under applicable law, carefully tailoring the scope and duration to meet jurisdiction-specific reasonableness standards. For employee non-solicitation, establish that for a reasonable period after termination (typically one to two years), the employee shall not directly or indirectly solicit, recruit, or encourage any employee of the company to leave employment with the company or to accept employment with any other person or entity, and shall not assist others in such solicitation or recruitment. For customer non-solicitation, establish that for a reasonable period after termination, the employee shall not directly or indirectly solicit, contact, or accept business from any customer or client of the company with whom the employee had material contact or about whom the employee obtained Confidential Information during the final specified period of employment (typically one to two years), for purposes of providing products or services competitive with those provided by the company. Include critical limitations establishing that these restrictions apply only to active solicitation and do not prohibit the employee from accepting employment with a competitor, responding to unsolicited inquiries, or engaging in general advertising not targeted at company employees or customers.
Address the employee's duty to avoid conflicts with continuing obligations in future employment. Require the employee to inform any prospective employer, before accepting employment, of the existence and general nature of the employee's continuing confidentiality and non-solicitation obligations to the company, and to provide the company with written notice of new employment including the employer's name and the employee's general job responsibilities. Establish the employee's obligation to ensure that new employment duties do not require or inevitably result in the use or disclosure of the company's Confidential Information, and to immediately notify the company if the employee's new employer requests information or assigns duties that would conflict with obligations under this agreement. Include provisions requiring the employee to provide the new employer with a copy of this agreement or to authorize the company to provide such copy directly.
Articulate the employee's continuing obligation to respond to legal process and company requests for information. Establish that if the employee receives any subpoena, court order, or other legal process seeking Confidential Information after termination of employment, the employee shall immediately notify the company and shall cooperate with the company's efforts to protect the information, following the same procedures applicable during employment. Require the employee to cooperate with the company in any litigation or investigation involving matters about which the employee has knowledge from employment, to provide truthful testimony when requested, and to make themselves reasonably available for interviews, depositions, and trial testimony. Clarify that the company will compensate the employee at a reasonable rate for time spent cooperating with such requests and will reimburse reasonable expenses, but that the employee's obligation to cooperate exists regardless of compensation.
Conclude with provisions establishing that these continuing obligations are binding upon the employee's heirs, executors, administrators, and legal representatives, and that the employee's estate remains liable for any breach occurring before or after the employee's death. Include language establishing that the employee acknowledges the reasonableness of these continuing obligations, understands that they are necessary to protect the company's legitimate business interests, and agrees that the restrictions are no broader than necessary to protect such interests. Address the employee's acknowledgment that the continuing obligations are supported by adequate consideration, including the company's agreement to provide access to Confidential Information, continued employment, and other benefits provided under this agreement.
Section 4: Legal Framework and Acknowledgments
Employee Acknowledgment and Understanding
Draft comprehensive acknowledgment provisions that demonstrate the employee's informed consent, voluntary agreement, and full understanding of the agreement's terms while creating strong evidence of enforceability and defeating potential defenses based on lack of knowledge or coercion. Begin with foundational acknowledgments establishing that the employee has carefully read and reviewed this entire agreement, has had adequate time to consider its terms and implications, has had the opportunity to ask questions and seek clarification regarding any provisions, has had the opportunity to consult with legal counsel of the employee's choosing before signing, and enters into this agreement voluntarily with full knowledge of its terms and without any duress, coercion, or undue influence. Include specific acknowledgment that the employee understands the agreement is written in clear language designed to be understood by persons without legal training, and that the employee has sought clarification for any terms or provisions that were unclear.
Develop substantive acknowledgments regarding the nature and value of Confidential Information that establish the business justification for the agreement's restrictions. Require the employee to acknowledge that during employment, the employee will have access to and learn Confidential Information that is valuable, unique, and proprietary to the company, that the company has invested substantial time, effort, and resources in developing and maintaining the confidentiality of this information, that the Confidential Information provides the company with competitive advantages in the marketplace, and that unauthorized disclosure or use of Confidential Information would cause substantial and irreparable harm to the company's business, competitive position, and customer relationships. Include acknowledgment that the employee understands that Confidential Information constitutes trade secrets and proprietary information entitled to protection under applicable law, and that the company would not provide the employee with access to such information without the protections afforded by this agreement.
Address acknowledgments regarding the reasonableness and necessity of the agreement's restrictions. Require the employee to acknowledge that the confidentiality obligations, security requirements, and post-employment restrictions contained in this agreement are reasonable in scope, duration, and geographic application, are necessary to protect the company's legitimate business interests in its Confidential Information and customer relationships, are no broader than necessary to protect such interests, and do not impose undue hardship on the employee's ability to earn a livelihood. Include specific acknowledgment that the employee has had the opportunity to negotiate the terms of this agreement, that the employee's signature indicates acceptance of the terms as written, and that the employee is not relying on any representations or promises not contained in the written agreement.
Incorporate acknowledgments regarding security responsibilities and the critical importance of compliance. Require the employee to acknowledge understanding that information security is essential to protecting the company's assets and reputation, that security incidents can result in substantial harm to the company and its customers, that the employee plays a critical role in maintaining security through compliance with security policies and protocols, and that failure to comply with security requirements may result in security breaches with serious consequences. Include acknowledgment that the employee understands the specific security requirements set forth in this agreement, has received or will receive training on security policies and procedures, and commits to maintaining vigilance regarding security threats and compliance with security protocols.
Address acknowledgments regarding consequences of breach and available remedies. Require the employee to acknowledge understanding that violation of this agreement may result in disciplinary action up to and including immediate termination of employment, that breach of confidentiality or security obligations may expose the employee to personal legal liability including injunctive relief and monetary damages, that the company may pursue all available legal remedies for breach including equitable relief and recovery of attorneys' fees, and that the employee may be held personally responsible for any harm caused to the company by the employee's breach. Include acknowledgment that the employee understands that some violations may also constitute criminal offenses subject to prosecution under applicable law.
Incorporate critical acknowledgments regarding protected rights and activities that preserve the agreement's enforceability while ensuring compliance with public policy and statutory protections. Require the employee to acknowledge understanding that nothing in this agreement prohibits the employee from reporting possible violations of law to governmental agencies or authorities, cooperating with government investigations, filing charges with administrative agencies, participating in agency proceedings, or engaging in other activities protected by whistleblower statutes. Include specific acknowledgment that the employee understands that under the Defend Trade Secrets Act and similar state laws, the employee may disclose trade secrets to attorneys or government officials in certain circumstances, and that the employee will not be held criminally or civilly liable for such protected disclosures. Address acknowledgment that this agreement does not prohibit the employee from discussing wages, working conditions, or other terms of employment with other employees or from engaging in other activities protected by the National Labor Relations Act or similar state laws.
Conclude with acknowledgments regarding consideration and contract formation. Require the employee to acknowledge that the company's agreement to employ the employee, provide access to Confidential Information, provide compensation and benefits, and provide other valuable consideration constitutes adequate consideration for the employee's obligations under this agreement. For agreements signed after employment commences, include specific acknowledgment of additional consideration such as continued employment, promotion, salary increase, bonus, or other benefits provided in exchange for signing the agreement. Include acknowledgment that the employee has received a copy of the fully executed agreement for the employee's records and understands that the agreement constitutes a binding legal contract enforceable in accordance with its terms.
Governing Law and Enforcement
Establish the comprehensive legal framework governing the agreement's interpretation, enforcement, and remedies through carefully structured provisions that maximize enforceability while providing clarity regarding jurisdiction, available remedies, and procedural requirements. Begin with governing law and jurisdiction provisions that establish the legal framework for interpreting and enforcing the agreement. Specify that this agreement shall be governed by and construed in accordance with the laws of the specified state or jurisdiction, without giving effect to any conflicts of law principles that would require application of the laws of any other jurisdiction. Establish that the parties consent to the exclusive jurisdiction and venue of the state and federal courts located in the specified county and state for any action or proceeding arising out of or relating to this agreement, and that the parties waive any objection to jurisdiction or venue in such courts and waive any claim that such courts constitute an inconvenient forum. Include provisions addressing service of process, establishing that the employee consents to service of process by certified mail to the employee's last known address or by any other method permitted by law.
Develop comprehensive provisions regarding equitable relief that establish the availability of injunctive remedies while satisfying legal requirements for such extraordinary relief. Establish that the parties acknowledge and agree that the employee's obligations under this agreement are unique and that breach of these obligations would cause irreparable harm to the company for which monetary damages would be an inadequate remedy, that the harm from breach would be difficult to measure and prove, and that the company would not have an adequate remedy at law for such breach. Based on these acknowledgments, establish that in the event of any breach or threatened breach of this agreement by the employee, the company shall be entitled to seek and obtain injunctive relief, specific performance, and other equitable remedies to prevent or restrain such breach, without the necessity of posting bond or proving actual damages, and without prejudice to any other rights or remedies available to the company at law or in equity. Include provisions establishing that the employee waives any defense that the company has an adequate remedy at law and consents to the entry of injunctive relief upon proof of breach.
Address the recovery of attorneys' fees and costs through provisions that incentivize compliance and deter breach. Establish that in any action or proceeding to enforce this agreement, the prevailing party shall be entitled to recover from the non-prevailing party all reasonable attorneys' fees, expert witness fees, costs of investigation, court costs, and other expenses incurred in connection with such action or proceeding, including fees and costs incurred in any appeal. Define "prevailing party" to include a party who substantially achieves its objectives in the litigation, even if not successful on every claim, and establish that the company shall be deemed the prevailing party if it obtains any injunctive relief or if the employee is found to have breached any material provision of the agreement. Include provisions establishing that the right to recover fees and costs applies to any proceeding including litigation, arbitration, mediation, or administrative proceedings, and survives any judgment or award.
Incorporate severability and reformation provisions that preserve the agreement's enforceability even if specific provisions are found invalid or unenforceable. Establish that if any provision of this agreement is held by a court of competent jurisdiction to be invalid, illegal, or unenforceable, such provision shall be modified and interpreted to accomplish the objectives of such provision to the greatest extent possible under applicable law, and the remaining provisions shall continue in full force and effect. Include specific language authorizing courts to reform or modify any provision found to be unenforceable to the minimum extent necessary to make it enforceable, including reducing the scope, duration, or geographic application of any restriction. Establish that if any provision cannot be modified to make it enforceable, such provision shall be severed from the agreement and the remaining provisions shall continue in full force and effect, and that the invalidity or unenforceability of any provision in one jurisdiction shall not affect its validity or enforceability in any other jurisdiction.
Address integration and amendment provisions that establish the agreement as the complete and final expression of the parties' understanding regarding its subject matter. Establish that this agreement constitutes the entire agreement between the parties concerning the subject matter hereof and supersedes all prior or contemporaneous agreements, understandings, negotiations, and discussions, whether oral or written, between the parties regarding such subject matter. Include provisions establishing that no modification, amendment, or waiver of any provision of this agreement shall be effective unless in writing and signed by both parties, that no waiver of any breach or default shall constitute a waiver of any subsequent breach or default, and that the failure to enforce any provision shall not constitute a waiver of the right to enforce such provision or any other provision in the future. Establish that any modification must be signed by an authorized officer of the company and that supervisors and managers do not have authority to modify or waive provisions of this agreement.
Incorporate provisions addressing the relationship between this agreement and other company policies and agreements. Establish that this agreement supplements and does not replace any other confidentiality, intellectual property, or restrictive covenant agreements between the parties, and that in the event of any conflict between this agreement and any other agreement, the provision most protective of the company's interests shall control. Address the relationship to employee handbooks and policies, establishing that this agreement is a separate contract not subject to modification through handbook changes, but that employees remain subject to all company policies and that violation of policies may also constitute breach of this agreement when such policies relate to confidentiality or security.
Conclude with miscellaneous provisions that address practical enforcement considerations. Include provisions establishing that this agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument, and that electronic signatures shall have the same force and effect as original signatures. Address assignment, establishing that the company may assign this agreement to any successor or assign in connection with any merger, acquisition, or sale of assets, but that the employee may not assign any rights or obligations under this agreement without the company's prior written consent. Include provisions establishing that the headings in this agreement are for convenience only and shall not affect interpretation, that the agreement shall be construed as a whole and not strictly for or against either party, and that any ambiguity shall not be resolved by any rule requiring construction against the drafter. Establish that notices under this agreement must be in writing and delivered by specified methods to designated addresses, and that notice is effective upon receipt or a specified number of days after mailing.
Final Instructions and Deliverable Requirements
Upon completing the agreement, ensure that all provisions work together cohesively to create a comprehensive, enforceable document that protects the company's interests while remaining fair and reasonable. Review the entire agreement to verify that defined terms are used consistently, that cross-references are accurate, that the language is clear and accessible to employees without legal training, and that all jurisdiction-specific requirements have been addressed.
Format the final agreement professionally with clear section headings, appropriate numbering, and sufficient white space for readability. Include signature blocks for both the employee and an authorized company representative, with spaces for printed names, titles, and dates. Consider including a separate acknowledgment page that the employee can sign confirming receipt and understanding of the agreement.
Provide the completed agreement as a polished, final document ready for execution, accompanied by a brief cover memorandum highlighting any jurisdiction-specific considerations, any provisions that may require customization based on the employee's role or access to particularly sensitive information, and any recommendations for implementation or employee communication regarding the agreement.
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- Skill Type
- form
- Version
- 1
- Last Updated
- 1/6/2026
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