What Happens if an Employee Violates an NDA?

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What Happens if an Employee Violates an NDA?

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Non-disclosure agreements (NDAs) are commonly used contracts that companies use to protect confidential and proprietary information. Because employees often have access to sensitive information, employers often have certain employees sign NDAs. This means that the employee legally agrees not to disclose confidential information to others outside of the organization or use the information for their own benefit.

What happens when an employee breaches the NDA and reveals information that should have been kept confidential? This situation can cause many losses for your company, and it is important to speak with an employment litigation lawyer in Walnut Creek who can protect your interests.

Enforcing the NDA

An NDA is not just a promise to keep secrets – it is a legally binding contract, and breaching the agreement has consequences. Every NDA should spell out an employer’s rights should an employee violate the contract. You should always have an employment attorney review your contracts to ensure that the terms protect your business.

Companies might be able to bring a lawsuit against the employee for one or more of the following:

  • Breach of contract
  • Breach of fiduciary duty
  • Misappropriation of trade secrets
  • Copyright infringement
  • Other intellectual property law violations

Companies should carefully investigate how the breach of the NDA occurred and which information was exposed. You will then need to determine the current and future economic harm that will likely follow the disclosure. Your lawsuit can seek damages from the employee for the company’s losses. Your lawyer can also work to settle the matter out of court whenever possible.

Contact an Employment Litigation Lawyer in Walnut Creek Today

Employment contracts should always be taken seriously – especially NDAs. If your employee violated a contract, learn how a Walnut Creek employment litigation attorney at Yudien Law Firm can help. Call 925.472.0600 or contact us online today.

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