Many employers will offer incentives to current and former workers in exchange for signing an NDA. This practice is both legal and common in the business world and fully accepted by the courts. For example, a retiring staff member may be asked to sign an NOA in exchange for additional compensation. In addition, an employer may apply for an NOA when hiring a new employee. In this case, the act of obtaining employment is considered a sufficient incentive. However, if your current employer asks you to sign an NDA without compensation, the confidentiality agreement may not apply. Although an employer has the right to protect the business secrets of his company, the scope of this protection is limited. While an employer has the right to require its employees to sign an NDA when they have access to valuable information about the company (. For example, product formulas, private client lists, financial reports, etc.), the employer should not ask an employee to sign a confidentiality agreement when the purpose is to protect information considered to be general knowledge of the sector or a list of customers available via the Internet. , or from another source.
The lawyers for two people who sued Monster Energy Company signed and authorized to „content and form“ a confidential settlement agreement between individuals and monsters. During an interview with a journalist for lawyersandsettlements.com, one of the plaintiffs` lawyers disclosed information that is subject to the confidentiality provision of the transaction agreement. Monster sued the lawyers for breach of contract and related claims. The lawyers responded with an anti-SLAPP request based on the fact that they were not parties to the transaction agreement. The court contradicted and rejected the lawyers` request, but the Court of Appeal quashed it and found that the lawyers had not participated in the settlement agreement, although they signed it and approved it in terms of „content and form“. The court stated, however, that it was „fairly easy to draft a transaction agreement that explicitly obliges lawyers (even if only available to confidentiality) and expressly requires them to sign as such.“ See also Sheppard, Mullin, Richter – Hampton, LLP v.