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Recognizing unlawful conditions in NDAs

On Behalf of | Jun 27, 2024 | Business & Commercial Litigation |

Non-disclosure agreements (NDAs) are standard tools used by companies to protect sensitive information. However, it’s crucial to ensure that these agreements comply with Georgia law. Here’s what you need to know to determine if your company’s non-disclosure agreement has any unlawful conditions.

Overly broad language 

A Georgia non-disclosure agreement should specify what information the business considers confidential. If the language is too broad or vague, it might be unenforceable. Courts often strike down NDAs that attempt to cover information not legitimately considered confidential or proprietary.

Restrictions on lawful activities

NDAs cannot prohibit employees from engaging in lawful activities. For example, an NDA cannot prevent an employee from reporting illegal activities or cooperating with government investigations. Such restrictions would violate public policy and be deemed unlawful.

Duration and scope 

The duration and scope of the NDA must be reasonable. State courts are unlikely to enforce NDAs that last indefinitely or cover an excessive range of information. Generally, a reasonable time frame for NDAs is one to two years, depending on the nature of the business and information.

Right to work 

Non-disclosure agreements should not infringe on an employee’s right to work. If an NDA includes non-compete clauses that excessively restrict an employee’s ability to find future employment, it could be considered unlawful. Georgia law requires that non-compete clauses be reasonable in duration, geographic scope, and scope of prohibited activities.

Ensuring your NDA adheres to legal standards can protect your rights and help maintain a fair and comfortable working environment. Always review your company’s NDA to make sure it respects your employee legal protections and fosters a healthy workplace.