NDAS: HEED THE HUSH-HUSH!

How much importance should be given to a Non-Disclosure Agreement (NDA)?

Statistics indicate 33% of the American workforce are bound by NDAs. With the rise of disgruntled employees using social media platforms to vent, are they putting themselves at risk to a lawsuit?

The convenience offered by the Internet has fostered a belief among many individuals that they can freely express themselves in a public setting without facing consequences. Whether driven by malice or carelessness, there has been a noticeable increase in disgruntled employees venting online, often disregarding any signed agreements that require confidentiality concerning company information such as products, services, marketing campaigns, strategies, financial details, and other business-related matters. This trend has coincided with a surge in defamation lawsuits attributed to the proliferation of social media platforms.

Cyber defamation, the dissemination of defamatory content through digital means, particularly online platforms, poses significant legal risks for professionals who make disparaging remarks about their employers' businesses. Such actions can result in severe financial penalties. Violating a non-disclosure agreement (NDA) exposes individuals to legal recourse from their employers, potentially leading to financial obligations and associated legal expenses.

The Consequence of Breaking an NDA: Financial Penalties and Other Fines

If a non-disclosure agreement (NDA) is breached, the employer or business has the right to take legal action, potentially leading to substantial financial repercussions. The penalties can vary, ranging from $25,000 to $100,000 per violation, with a maximum of $750,000 per breach. This may involve covering the plaintiffs' settlement expenses and legal fees throughout the litigation process, creating a financially burdensome and lengthy ordeal for the accused party.

Defamation can manifest in various forms in the workplace, such as:

• Written statements: False and harmful statements conveyed through emails, memos, or other written means.

• Verbal statements: False and detrimental statements spoken in person, on video, or over the phone.

Defamation involves making untrue statements that damage an individual's or business's reputation, whether through written (libel) or spoken (slander) remarks. To defend against a defamation claim, the defendant must demonstrate that the statement was not confidential, factual, and publicly known.

For a successful defamation lawsuit, an employer should demonstrate that an employee made a false statement about the employer or the company. Safeguarding a business's confidential information, trade secrets, financial status, and operational activities is crucial for business owners, entrepreneurs, and HR managers Utilizing Non-Disclosure Agreements (NDAs) can assist in achieving this goal, as long as the agreements include the necessary details:

• Clearly define the time frame for the NDA to be valid.

• Provide a detailed description of what constitutes confidential information and what does not.

• Identify the personal information of the parties involved in the NDA.

• Explain the purpose behind considering the information confidential within the NDA.

• Specify the consequences of breaching the NDA, including the responsibilities of each party and legal fees.

When creating an NDA, it is recommended to consult with legal experts. Neglecting essential details in NDAs can have serious consequences. Actively hold your workforce accountable for the document by providing an executed copy in their accessible employee portal and providing employees a copy as they exit your company.

Employees be sure to adhere to any document you sign for employment It will cost you if you do not.

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