MORE NON-PROFITS START DEMANDING VOLUNTEER NDAS
We were recently asked a question about NDAs for non-profit organizations by someone who had been asked to sign one. In light of that discussion, THE EASTON GAZETTE did some research on NDAs.
Non-disclosure agreements seem to be more prevalent than ever. Most of the time, we hear about non-disclosure agreements (NDAs) as they apply to high powered CEO’s leaving their positions or individuals involved in settlements of lawsuits. But now we are hearing about them in the context of local, small non-profit groups. What is an NDA?
A non-disclosure agreement (NDA) is a binding contract that obligates one or both parties to keep specified information confidential and to refrain from disclosing or misusing it. An NDA protects trade secrets, client lists, financial data, product designs, and other proprietary information. Parties sign NDAs before sharing sensitive material during deals, employment, or negotiations. Are NDAs Legally Enforceable?
Please follow us on Gab, Minds, Telegram, Rumble, Truth Social, Gettr, Twitter
The practice of getting people to sign non-disclosure agreements applies in many different situations. For example, an employee either is hired for or leaves their job, and they may get slapped with signing an NDA by their employer. Some employees may sign an NDA upon retirement. That NDA must specify a particular time period for which that NDA is in effect. It also cannot use retirement benefits as leverage for signing an NDA. In other words, an employee cannot be coerced to sign with a threat of losing or reducing retirement benefits or health care.
are non-disclosure agreements enforceable?
Mostly, yes. However, there are clear stipulations to when NDAs are enforceable and when they are not.
NDAs are enforceable when they identify clearly defined confidential information. In other words, the NDA must specify a reasonable scope of information that is protected. It cannot just be a general statement that makes everything protected.
The parties, disclosing and receiving, involved in the NDA must also be clearly defined and both parties must receive something for signing, employment, access to information, or a business relationship. Neither party may be coerced to sign the agreement.
NDA’s cannot cover illegal activity.
When NDA’s fail it is generally because of an unreasonable duration for the NDA, a vague designation of what is and isn’t covered, an application to an existing employee without giving them anything new for signing, or an attempt to hide fraud, safety violations or illegal activity.
So, for example, if a corporation attempts to get an employee to sign an NDA so that employee will not disclose fraud of any kind, the NDA is invalid.
Hellbound and Down 